October 12, 2008

Baosteel Group allowed to build Zhanjiang iron and steel base

It is reported that Shanghai Baosteel Group Corporation has recently been allowed to invest about CNY 60 billion in the construction of an iron and steel base at Zhanjiang, Guangdong Province in south China.

As per report recently the National Development and Reform Commission, China's macro economy regulator, gave nod to Baosteel Group's building scheme, with a view to further improving the country's iron and steel industrial structure and layout, eliminating the inefficient production capacity and helping domestic steelmakers sharpen their competitive edges.

People familiar with the matter said the Zhanjiang based project will be engaged in high end iron and steel production, with an annual production capacity of more than 10 million tonnes or 20 million tonnes. Meanwhile, sources said that Baosteel Group would acquire and integrate Guangdong Shaoguan Iron and Steel Group Company Ltd. and Guangzhou Iron & Steel Group Company Ltd, two local steelmakers. And then the buyer is likely to establish a new venture in Guangzhou, capital city of Guangdong Province.