China’s Dazhou city government and Liaoning Fangda Group have signed an agreement to build a steel plant with an annual production capacity of 10mn mt, according to China Metallurgical News.
The new plant will replace the Dagang plant in the city, which at present has an annual output of 3mn mt of steel and 3.5mn mt of steel products. Between 2014 to 2016, Dagang or Dazhou Iron and Steel suffered financial losses.
The company in March 2020 had suspended all its operations. Mainly as it faced cash crunch with built-up inventories of over 140,000mt blocking a capital of nearly CNY500mn, according to reports.