A RMB 100-billion steel industry chain is being formed in Linyi Lingang Economic Development Area, located in Linyi city, Shandong Province, in China.
In particular, Shandong Province-based Chinese steelmaker Linyi Iron and Steel Investment Group Special Steel’s 2.7 million mt high-quality special steel project Fully has been ramping up production of alloy structural steel for construction machinery, which will gradually replace No. 20 and No. 45 high-quality carbon structural steel.
At the same time, in the economic development area, a 100,000 mt high-end stainless steel seamless pipe project of Shandong Province-based enterprise Lingang Nonferrous Metals is about to be launched. The project has an overall investment of RMB 930 million ($130 million), and will involve the construction of two seamless steel tube piercing-and-rolling production lines, mainly producing 300 series stainless steel seamless steel pipes.
Up till now, Linyi Lingang Quality Steel Production Base has had an overall steel capacity of 8.5 million mt.
In the first half of the current year, the crude steel output of Linyi Lingang Economic Development Area is estimated to have reached 5.527 million mt, while realizing a gross industrial output value of RMB 28.72 billion ($4.0 billion) in the given period. The Economic Development Area is expected to attract RMB 10 billion ($1.4 billion) in investment and generate RMB 60 billion ($8.4 billion) in output within the year, with annual output likely to surpass RMB 100 billion ($14 billion) by 2027.