Construction has commenced on the new stainless steel project of Henan Province-based Chinese stainless steel producer Xuyuan Group, as reported by local media sources on March 19.
Total investment in the project, which is based in the county of Baofeng in Pingdingshan in Henan Province, will reach RMB 3.6 billion ($578.8 million), with the main investors being Xuyuan Group, China First Heavy Industries and China Reinsurance Group. The first phase of the project includes construction of the main plant building and a stainless steel plate production line with a planned annual output capacity of one million mt. The total investment in the first phase is expected to be RMB 2 billion ($321.5 million). Construction of the main plant building began on March 18 and is due to be finished in October this year, while the stainless steel plate line is due to start production operations in June 2014. The second phase of the project involves the construction of stainless steel recycling facilities with an annual output capacity of 500,000 mt and with production operations due to commence in August 2015.
After full completion of the project in question, annual operating revenues are expected to reach RMB 13 billion ($2.09 billion), with a total of 1,500 jobs being provided. After completion, Xuyuan Group will be the biggest stainless steel processing enterprise in China.