Wugang to become a large steel production base

Wugang to become a large steel production base

According to recent industry news, Wugang City in Henan province of China will invest Yuan 4.8 billion ($580 million) to establish the largest iron and steel production base of the province. Wugang Company will invest Yuan 3.08 billion ($372 million) to build a steel plate production line, which will have an annual production capacity of 1 million tons. The production line is scheduled to be operational by the end of 2006. When the project is completed, Wugang Company will produce 3 million tons of steel and 2.6 million tons of steel plates per annum. Moreover, the sales of the company will reach Yuan 10 billion ($1.2 billion). Zhongjia Iron & Steel Company will expand its mining project, which is planned to be completed by the end of 2005. Aoruite Mining Company will complete its project by the end of this month. Zhongtian Ironworks will invest Yuan 81 million ($9.7 million) to increase pig iron production to 500'000 tons. When all these projects are completed, Wugang City will become the largest iron and steel production base in Henan province.