Yao Xiaodong, president of Chinese steel firm Debang Guangdong, subsidiary of Hebei-based Luanhe Group, stated on Chinese Investors Day held at Vladivostok, Russia, that Debang Guangdong plans to build a steel processing base in Russia’s Far East, with an overall investment of $5.0 billion.
Mr Yao said that the planned production base will be built in three stages and have an annual steelmaking capacity of up to 10 million mt upon completion. The first stage will cost $500 million and have an annual steel production capacity of 1.0 million mt. The second stage will increase the annual output capacity to 5.0 million mt.
Yao Xiaodong said the overall project will provide between 30,000 and 50,000 jobs, with construction works including port, storage and infrastructure for steel production. He said the location for the project is currently being selected, while construction will likely start within one year.
Debang Guangdong was founded by Luanhe Group in 2004.