Chinese steel giant Baosteel has stated that the local authorities in the Aqsu-Baicheng and Yili areas of the Xinjiang Uyghur Autonomous Region in China have approved the construction of steel production facilities which will be operated by Baosteel subsidiary Bayi Iron and Steel.
On August 3, 2010, Baosteel and the Xinjiang Uyghur Autonomous Region signed a strategic development framework agreement, according to which Baosteel pledged to invest RMB 30 billion in product mix adjustment and technological upgrading at its subsidiary Bayi Iron and Steel Co..
By the end of China's 12th five-year plan period (2011-15), the annual steel output capacity at the main steel production base of Bayi Iron and Steel is expected to reach 10 million mt. Additionally, according to the mentioned agreement, a 1 million mt steel output expansion project is to be implemented at Yili city, with a 3 million mt steel output project to be built in the Aqsu-Baicheng area, the latter to be completed by April 2012. Accordingly, Bayi Iron and Steel will have an overall annual steel output capacity of 15 million mt by 2015. Baosteel stated that this would make Bayi Iron and Steel the most competitive steelmaker in western China.