The Industry and Information Technology Department of China’s Jiangsu Province has announced that Jiangsu-based Shagang Group, China’s largest private steelmaker, plans to begin construction of one 120 mt converter in September 2020, and one 130 mt alloy steel electric furnace in December of the same year, both of which are expected to be put into operation in June 2022. The new facilities represent an increase of 2.35 million mt in steelmaking capacity.
At the same time, Shagang Group will close 2.98 million mt of steelmaking capacity, demolishing three 50 mt converters and one 90 mt electric furnace by June 2022, equivalent to 2.28 million mt and 0.7 million mt of steelmaking capacity, respectively.
The capacity replacement ratio will be 1.25:1.0, while 42,500 mt of steelmaking capacity will be held in reserve by Shagang Group for future capacity replacement purposes.
In late November, Shagang Group had announced the building of 1.71 million mt of steelmaking capacity to be put into operation by June 2022, also under its capacity replacement program, as previously reported by SteelOrbis.