The registered capital of Baosteel Zhanjiang Iron and Steel Co., subsidiary of Chinese steel giant Baosteel, will be increased from RMB 8 billion ($1.26 billion) to RMB 20 billion ($3.16 billion), with the Guangdong provincial government taking a 10 percent stake in the company, as stated by Shang Genghong, general manager of Baosteel Zhanjiang Iron and Steel.
Upon completion, Baosteel's Zhanjiang steel base project, which is expected to cost RMB 69.68 billion ($10.96 billion), will produce 9.20 million mt of pig iron, 10 million mt of crude steel and 9.38 million mt of finished steel per year.
Baosteel plans to move 30 percent of its steel production out of its main base in Shanghai over the next five years.