Steel Industry News
Baosteel Plans Earlier Start For Zhanjiang Steel Project
Tuesday, 27, April 2010
Construction on Baoshan Iron and Steel's (Baosteel) (600019) Zhanjiang steel project in Guandong province is likely to start in June 2010, reports China Business News, citing Huang Han, deputy secretary-general of the Zhanjiang city government.The Zhanjiang steel project was terminated in 2008 due to the move by the central government to phase out outdated capacity in the steel industry. Baosteel took over the Zhanjiang steel project following its acquisition of Guangzhou Iron and Steel Group and SGIS Songshan Group.
According to Huang, the Zhanjiang steel project will help Guangdong province to boost steel production capacity following the elimination of Guangzhou Iron and Steel Group's outdated steel production capacity.The report added that the government had previously planned for the elimination of 10 million tons of outdated steel capacity belonging to small steel companies in Guangdong province. In addition, another five million tons each of outdated capacity from Guangzhou Iron and Steel Group and SGIS Songshan Group will be phased out.
