Sangang Minguang Group has revealed its capacity replacement plan for the year in its 2019 annual report released on April 16. Sangang looks to construct two blast furnace systems, one with 120mt converter for steel making and other is steel rolling line in 2020. Together it will have an annual output of 1.5mn mt. The company will also transfer its 1mn mt of capacity to Luoyuan Minguang Iron and Steel plant.
Sangang plans to produce 8.31mn mt of iron and 9.63mn mt of steel in 2020. In the year, the company plans to achieve operating income of CNY43.148bn and a profit of CNY 2.439bn.
In 2019, the company’s steel production rose by 6pc to 10.3075mn mt, production of pig iron increased by 5pc to 8.7582mn mt and the production of sintered ore increased by 4.2pc to 10.8636 from the previous year. In 2019 Sangang’s operating income increased by 25.55pc from the previous year to CNY45.511bn. Its net profit, however, dropped by 36.07pc to CNY 3.675bn.