Major Chinese steelmaker Baowu Group and Fujian Province-based regional producer Sangang Iron and Steel Group have inked a cooperation agreement to invest RMB 20 billion ($3.09 billion) in two steel projects in Fujian Province, as reported by local media.
Baowu-controlled Taiyuan Iron and Steel Group will invest RMB 10 billion ($1.545 billion) in a Fujian-based quality stainless steel project at Baosteel Desheng Stainless Steel, which targets to produce 3.22 million mt of stainless steel annually.
Sangang Iron and Steel, owned by the Fujian provincial government, will invest RMB 10 billion ($1.545 billion) in facilities to make fine steel products and related infrastructure including a docking berth, a pipeline corridor, an intelligent material field, an intelligent storage system, a steel processing and distribution system and a big data cloud computing platform. By then, “Sangang will have a richer product mix and will be more competitive in H-sections,” said Pan Jianzhou, executive director of Luoyuan Minguang Iron and Steel Co., Ltd.
Meanwhile, Jiangsu Province-based Wuxi Xinsanzhou Special Steel Co., Ltd will invest RMB 3.5 billion ($0.54 billion) in a cold rolled steel project in Fujian, with the annual capacity to reach 1.1 million mt.