Henan Province-based Chinese steelmaker Hebi Iron and Steel Co. (Hebi Steel) has announced that it has commissioned a 40,000 mt annual capacity steel casting facility, located in the district of Heshan in the city of Hebi, Henan. The facility constitutes phase one of a steel casting project with a planned total annual output capacity of 58,000 mt and an estimated total investment cost of RMB 360 million ($56.93 million). Construction work on the project commenced in March 2010.
The project is divided into three phases. Phase one, which has just been commissioned, cost an investment of RMB 100 million ($15.81 million). Phase two, which will cost RMB 140 million ($22.14 million), will add a further 18,000 mt of annual cast steel output, with Hebi Steel's overall annual cast steel output thus reaching 150,000 mt, while phase two will also increase the company's processing capacity for cast steel parts. Finally, phase three at an investment cost of RMB 140 million ($18.98 million) will enable the production of 1,000 milling machines per year.