Xilin Steel to invest RMB 800 million in 2nd phase upgrading project

Heilongjiang Province-based Chinese steelmaker Xilin Iron and Steel Group (Xilin Steel) has announced that it is planning to invest RMB 800 million ($126.98 million) in its second phase upgrading project.
 
The second phase project includes a 1,260 m3 blast furnace, a 120 mt converter and a high-speed wire rod production line with an annual output capacity of 1 million mt. Once the second phase project is put into production, it is expected to bring in annual sales revenue of RMB 4.8 billion ($761.9 million), with an anticipated gross profit of RMB 160 million ($25.4 million).
 
The first phase of the project was completed at the end of 2011, with an annual steel output capacity of 1 million mt at a total investment cost of RMB 990 million ($157.14 million).
 
After the overall project is commissioned, Xilin Steel is expected to have an annual crude steel production capacity of 5 million mt.