Hubei provincial government inked a strategic cooperation agreement with Chinese steel giant China Baowu Group on June 15, as reported by Hubei Daily. According to the agreement, both parties will deepen their cooperation and establish all-round strategic cooperative relations on the basis of long-term mutual support. Meanwhile, president of Baowu Group, Chen Derong, said that the group plans to invest about RMB 20.0 billion ($2.8 billion) in Hubei Province in five years, to promote the upgrading and transformation of the steel industry.
In December 2016, China Baowu Group was jointly reorganized by the former Baosteel Group and Wuhan Iron and Steel Group, with an overall capacity scale of 90 million mt per year, becoming the biggest steel producer in China and the second biggest steel producer globally.
In 2019, China Baowu Group’s crude steel output amounted to 95.22 million mt, while it achieved an operating revenue of RMB 556.6 billion and a gross profit of RMB 34.52 billion. In particular, China Baowu Group produced 19.69 million mt of pig iron and 20.18 million mt of crude steel in Hubei Province in 2019.
The new investment of RMB 20.0 billion in five years will be used in supporting the upgrading of its steel production base, including improving quality and efficiency, energy conservation, environmental protection and intelligent manufacturing.