Jiangsu Province-based Chinese steelmaker Shagang Group has launched its Jiunong steel logistics project, the largest modern steel logistics project in China, with a total investment of RMB 30 billion ($4.52 billion).
Phase 1 construction of Shagang Group's Jiunong steel logistics project includes a commercial trade center, an inventory center with 2 million mt annual capacity, a cutting and pre-processing center with 3 million mt annual capacity, and a distribution center with 30 million mt capacity per year. After the phase 1 project has been completed, sales revenues are expected to reach about RMB 100-150 billion ($15.08-22.63 billion) per year. The phase 2 construction will focus principally on storage and distribution of iron ore, coking coal and raw materials.
Gong Sheng, deputy board director of Shagang Group, said, "Our target is to establish the largest steel logistics center in China, with a planned annual sales volume of RMB 200-250 billion ($30.17-37.07 billion)."