Yuan Zhou, mayor of the city of Guiyang in the southwestern Chinese province of Guizhou,has met with Zhu Jimin, chairman of privately-owned Chinese steelmaker Shougang Group, to discuss the relocation of Guiyang-based Shougang Group subsidiary Guiyang Iron and Steel (Guiyang Steel) to a new steel production base.
As the city of Guiyang continues to expand, the presence of Guiyang Steel within the city causes problems in terms of both traffic congestion and the environment. Accordingly, the Guiyang municipal authorities and Shougang Group have signed an agreement for the relocation of Guiyang Steel to the county of Zhazuo, also in Guizhou Province, where a new steel production base will be established.
Shougang Group will invest more than RMB 10 billion ($1.5 billion) in the construction of the new steel base, with the project expected to be completed within three years.