"We are adjusting our implementation plan for the construction of the Zhanjiang steel project in line with Baosteel's capacity transformation in Shanghai," Shang Genghong, vice general manager of Baosteel Zhanjiang Iron and Steel Co., subsidiary of Chinese steel giant Baosteel, said at a conference held in Shanghai on July 26.
Mr. Sheng stated that initial works on the Zhanjiang project have been carried out following tenders held for the continuous casting plants, cold rolling plants and hot rolling plants, while in the meantime construction of two captive power plants has started. "Feasibility studies for the project have been completed...We expect to start construction of the main part of the project within 2012 and to achieve official operation of the blast furnace No. 1 and related hot rolling and cold rolling production lines by 2015," he added.
Upon completion, Baosteel's Zhanjiang steel base project, which is expected to cost RMB 69.68 billion ($10.96 billion), will produce 9.20 million mt of pig iron, 10 million mt of crude steel and 9.38 million mt of finished steel per year.