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| 30 million tonnes steel giant unveiled in Guangxi |
| BY steelguru.com, Writer |
| It is reported that China has launched a steel making project in the southern Guangxi Zhuang Autonomous Region that will have an annual production capacity of 30 million tonnes with the formal establishment of the Guangxi Iron and Steel Group recently. The group is a joint venture between Wuhan Iron and Steel Group, China's fourth largest steel maker based in Hubei Province, and the Guangxi regional administration of state-owned assets. Wuhan Iron and Steel Group is holding 80% stake in the form of cash input in the new group. The Guangxi regional administration of state-owned assets shall hold a 20% stake in the form of all the net assets of its Liuzhou Iron and Steel Group. The new group expects to begin building its plant in December in Fangchenggang a major port in Guangxi. Mr Biao the Guangxi governor said he hoped the first production line would be completed in 30 months and fully operational in 50 months. The coastal plant shall have an initial annual capacity of 10 million tonne. Its capacity will be eventually expanded to 30 million tonnes at a total cost of about CNY 205 billion. The two partners will shut 9.1 million tonnes of obsolete steel-making capacity and 5.41 million tons of obsolete iron making capacity. The inauguration of the new group marks another milestone in the reorganizing of China's steel following similar cases in Guangdong, Shandong and Hebei provinces. Mr Xiong Bilin deputy director of the Industrial Development Department of the State Planning and Development Commission said that these moves will strengthen the sector's competitiveness. He said that the new plant is the largest iron and steel project in the West China Development Scheme. It reflects the shift of the industry from the inland to the coastal areas. China's iron and steel companies are shifting to coastal areas, in part to cut transport costs. |