Platts reported that a new iron and steel project in Zhanjiang Guangdong province has recently been approved by the National Development and Reform Commission. When completed, the Zhanjiang project is expected to have a production capacity of more than 10 million tonnes per year.

As per report this is the first time that such a large scale project has been planned in Zhanjiang since 1984, the year the city was approved as one of the first state level development zones for economy and technology.

Mr Huang Huahua governor of Guangdong province said "Taking the full advantage of the iron and steel project will help Zhanjiang to become the third largest city of Guangdong province."

Baosteel's iron and steel base may also bring hope to rejuvenate the Zhanjiang port. The first phase of the project is expected to attract an investment of CNY 69 billion.