China's State Council has approved two large projects for the domestic iron and steel industry, according to China-based 21st Century Business Herald on May 1. One project is a steel sheet production base in Kanjiang, Guangdong Province with an annual capacity of 10 million mt, while the other project located in the city of Fangchenggang in Guangxi Zhuang Autonomous Region is also for an annual output capacity of 10 million mt of steel sheet.
The Kanjiang project is expected to produce premium quality automotive sheet and electrical panels. The coastal location and the big potential for the iron and steel market in Guangzhou due to its advanced automotive and home appliance industries were cited as factors behind the project which will be built by Baosteel Group and was submitted for approval in 2005.