China's Baofeng to invest $7.3 bln in new steel hub

Fabryki Sprzetu i Narzedzi Gorniczych Grupa Kapitalowa Fasing SA

23/08/2018 11:17

BEIJING, Aug 23 (Reuters) - China's Baofeng Special Steel, a
medium-sized steel mill based in Xuzhou city in Jiangsu, will
invest 50 billion yuan ($7.27 billion) to move to the coastal
city of Yancheng and build a new steel production base with 8
million tonnes of annual capacity.
    This decision came after a push from Jiangsu, China's
second-largest steel-making province, to move steel mills to
coastal regions from inland as part of its effort to improve air
quality and streamline the smoke-stack industry.  urn:newsml:reuters.com:*:nL4N1V622N
    The first phase of construction work is expected to start
this month. It will involve an investment of 15 billion yuan to
build a steel beam project with 3 million tonnes of annual
capacity and a steel pipe project with 600,000 tonnes capacity,
according to a statement from Yancheng government on Thursday.
    It will also jointly invest 100 billion euros ($114.37
billion) with Poland's Capital Group Fasing Inc  FSG.WA  into a
steel chain project, with 300,000 tonnes of annual capacity. 
    Baofeng declined to comment.
    The mill has an annual capacity to make 1.4 million tonnes
of iron and 1.7 million tonnes of steel. The old factory will be
shut by 2020, according to the provincial plan issued last week.
    It is unclear from where the medium-sized steel mill would
possess an annual production capacity of 5 million tonnes for
the new base, as the province has been banned from constructing
a steel capacity in order to curb harmful emissions.
    Estimated completion date of the new steel hub is also
unknown. However, the first phase is expected to be launched in
January 2020.
    
    
   ($1 = 6.8740 Chinese yuan)
   ($1 = 0.8744 euros)

 (Reporting by Muyu Xu and Josephine Mason, Editing by Sherry
Jacob-Phillips)
 ((muyu.xu@thomsonreuters.com; +86 010 66271298;))