China plans to establish three steel plants

China plans to establish three steel plants

China will reportedly establish three steel plants despite the measures taken to slow down investments in steel sector. However, these steel plants will produce steel products that China currently imports. Therefore with these plants, China's dependence on imports will reduce within three years. The first mill will be a 10 million-ton steel plant in Zhanjiang city in the southern province of Guangdong. The second will be a 5 million-ton steel plant in Maanshan, Anhui province and third will be a 1.5 million-ton stainless steel plant in Taiyuan, Shanxi province. All these projects are stated to have been approved as the mills will produce steel products, which China currently imports. With the completion of these projects, China's dependence on imported steel products will reduce significantly. As previously reported by SteelOrbis, China imported 37.17 million tons of steel products in 2003. The three plants will produce high-grade steel products that are currently imported by China. The Zhanjiang mill will be established with an investment of Yuan 5 billion ($604 million) and the plant will produce hot rolled plates and coil, cold rolled, galvanized and color-coated sheets. Stainless steel production lines of Taiyuan Iron and Steel Company will be built by Voest-Alpine Industrieanlagenbau. Maanshan will spend Yuan 20 billion ($2.4 billion) to build its 5 million-ton steel plant.