China’s Baowu Iron and Steel group and Jiangsu province are jointly developing a 20mn mt high-quality steel project in Yancheng Binhai industrial park, according to Chinese Metal Society.
Construction of the plant began in 2018 and it will take 10 years to complete. The first phase of the plant will be completed in three years with a production capacity of 8 to 10mn mt.
Curb on capacity expansion
Steel companies in China are not allowed to expand production capacity. Baowu group is shutting down its 7mnmt Meishan Iron and Steel plant in Nanjing and gradually shifting iron and steel smelting capacity to a new plant in Yancheng. This is in-line with the Chinese government’s direction to relocate plants to reduce the impact of pollution.
Baowu group was formed in 2016 following the merger of Baosteel and Wuhan Iron and Steel. The company is the second largest steel producers in the world with an annual production capacity of 90mn mt.