According to the latest updates, China’s medium-sized steel mill, Baofeng Special Steel which is currently based in Xuzhou city of Jiangsu province is set to invest about RMB 50 million (USD 7.27 billion) in the coastal city of Yancheng to build a new steel production base with an annual capacity of 8 MnT.
Only recently, China’s second largest steel producing province Jiangsu has announced its plan to move the steel mills based in the province to new areas in the coast in order to improve air quality and streamline the smoke-stack industry. However, this news of Baofeng to set up a new steel base with such a high production capacity has come as a surprise as the province has been banned from constructing a new steel capacity amid its efforts to curb harmful emissions.
As per the reports, the first phase of construction work is expected to start this month. It will involve an investment of RMB 15 billion to build a steel beam project with 3 MnT of annual capacity and a steel pipe project with 600,000 tonnes capacity. It will also jointly invest 100 billion euros (USD 114.37 billion) with Poland’s Capital Group Fasing Inc into a steel chain project, with 300,000 tonnes of annual capacity.
The mill has an annual capacity to make 1.4 MnT of iron and 1.7 MnT of steel. The old factory will be shut by 2020, according to the provincial plan issued last week. However, it is unclear from where the medium-sized steel mill would possess an annual production capacity of 5 MnT for the new base amid the province’s ban to construct new capacities.
While the estimated completion date of the new steel hub is also unknown, the first phase is expected to be launched in January 2020.
Baofeng is specialized in the production of stainless steel pipes and tubes, pipe fittings and flanges and along with catering domestic market it also exports its products to Europe, Canada, Mexico, UAE and various Southeast Asian countries.
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