The 1,080 m³blast furnace No. 1 of Xuzhou, Jiangsu-based Chinese steelmaker Huahong Special Steel Co. has successfully commenced smelting, marking the official start of production in the first phase of the special steel project in question, according to Chinese media sources. Hong Kong Hongji Century Group Co., Ltd is investing a total of RMB 4.29 billion ($683 million) in its Huahong Special Steel project.
The project is being constructed in two phases and is expected to achieve an annual special steel output of 3 million mt after completion. Meanwhile, the annual sales revenue and pre-tax profit of the project are anticipated to reach RMB 15 billion ($2.4 billion) and RMB 1 billion ($159 million) respectively.
Construction work on the first phase of the project, in which RMB 2.5 billion ($398 million) is being invested, started in 2010. The first phase includes the construction of two 1,080 m³blast furnaces, one 120 mt converter, one continuous billet caster, two continuous hot rolled bar production lines and other supplementary facilities, and is expected to achieve an annual special steel output of 1.5 million mt after completion.