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Baowu to move 2 shut blast furnaces to Cambodia - Report

Steel News - Published on Thu, 23 May 2019

Image Source: Reuters
Reuters, citing a source familiar with the firm’s plans, reported that China’s top steel maker Baowu Group is studying plans to relocate blast furnaces from remote Xinjiang to Cambodia in a bold example of China’s heavy industry shifting excess capacity overseas. The source said “Baowu is looking at the feasibility of shipping two blast furnaces, with a combined capacity of 3.1 million tonnes, along with two converters to turn iron into steel, to Cambodia in late 2019.”

He told “The equipment to be moved would come from Xinjiang Bayi Nanjiang Steel Baicheng Co Ltd, a Baowu subsidiary based in Aksu in far northwest China. The plant was shut in 2017 and sits some 4,000 km from the Cambodian capital of Phnom Penh. This equipment may be seen as outdated in China, but it is still quite advanced in Cambodia.”

The move, which would mark Baowu’s first overseas production, shows the lengths Chinese steelmakers are prepared to go to maintain output levels despite Beijing’s drive to cut industrial slack in the mainland. China has shut more than 150 million tonnes of steel capacity in the past three years as part of a campaign to modernize its economy, but still accounts for half of global output, with capacity of 980 million tonnes a year.

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Posted By : Sanju Moirangthem on Thu, 23 May 2019
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