On November 3, the local government of Fuling, a district of Chongqing Municipality in China, signed an agreement with Zhangjiagang, Jiangsu-based Chinese steelmaker Panhua Group Corporation Ltd regarding new auto sheet and electrical steel projects.
According to the agreement, Panhua Group will invest RMB 6 billion ($0.9 billion) for a new auto sheet project in Fuling with an annual production capacity of 2.5 million mt. It will also invest RMB 500 million ($75 million) for an electrical steel project in Fuling with an annual output of 200,000 mt.
The agreement signed on November 3 constitutes the second phase of Panhua's overall investment project in Fuling. In the first phase, capital investment will total RMB 5.5 billion ($0.82 billion). The first phase consists of a series of sheet projects with output of 1.5 million mt and a port with an annual throughput of 6 million mt. In addition, RMB 1.5 billion ($ 0.23 billion) will later be invested in a third phase for a tinplate project with an output of 600,000 million mt per year.
Panhua Group is ranked among the top 500 Chinese Companies, with headquarters in Zhangjiagang Free Trade Zone. Its main production consists of pre-painted galvanized iron, galvanized coil and cold rolled sheet.