President of major Chinese steel producer Baosteel Group, He Wenbo, has stated that the Guangdong provincial government has decided to initiate its substantial reorganization plan for Baosteel subsidiary Guangdong Steel without delay at the beginning of 2010.
Meanwhile, preparations for Baosteel's Zhanjiang project have continued to progress, despite the statements on curbing overcapacity in the steel industry made by government ministries. On December 23, 2009, Baosteel disclosed that the plan for the combination of Guangdong Steel and the Zhanjiang steel project would be developed in 2010, with a new mill named Zhanjiang Steel Co being established.