Shaoguan Steel: Zhanjiang steelmaking project needs to be pushed forward

As previously reported by SteelOrbis, Chinese steel giant Baosteel Group has been pushing forward the reorganization of two Guangdong Province-based steel producers, i.e., Shaoguan Steel Group and Guangzhou Steel Group. Baosteel Group aims to establish a new steel group called Guangdong Steel Group from the restructuring of the two mentioned producers, while it also plans to implement its project for the construction of a steelmaking base at Zhanjiang, Guangdong Province.
 
Yu Ziquan, president of Shaoguan Steel Group, has stated that the Zhanjiang steelmaking project should be pushed forward vigorously. In the context of the project, Baosteel plans to eliminate 15 million mt of outdated steelmaking capacity while building a new steel production base with an annual output capacity of 5 million mt.
 
On March 17, 2008, the Chinese National Development and Reform Commission (NDRC) approved the Zhanjiang steelmaking project. However, Baosteel has not yet handed over all relevant files to China's State Council for approval.
 
Mr. Yu stated that in Guangdong Province annual steel consumption is almost 50 million mt, of which only 20 million mt can be supplied by local mills in the province. Thus, the construction of a large steel base in the province is very necessary, he said.
 
Mr. Yu revealed that to date Baosteel has invested RMB 6 billion ($913 million) in the mentioned project, including construction of a heavy-lift port and an iron ore port.