China's National Development and Reform Commission (NDRC) has stated that the official approval, announced last week, for construction work on Chinese steel giant
Baosteel's planned steel
production base at Zhanjiang in Guangdong Province and on major Chinese steel producer
WISCO's new steel
production base at Fangchenggang in Guangxi autonomous region will need to be accompanied by a contraction of existing
crude steel output capacities in Guangdong and Guangxi, with
crude steel output capacity to decrease by 16.14 million mt in Guangdong and by 10.70 million mt in Guangxi.
Upon completion, the Zhanjiang steel base project, 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 each year, while
WISCO's Fangchenggang steel base project, costing RMB 63.99 billion ($10.07 billion), will produce 8.50 million mt of
pig iron, 9.20 million mt of
crude steel and 8.60 million mt of finished steel.