Giant Iron and Steel Project in China to Begin Operation in October

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Shougang Jingtang iron and steel project, which began construction in March 2007 in Caohuidian of Tangshan City, has been making steady progress, the National Development and Reform Commission announced on April 14, 2008. The $5 billion project, invested by the Shougang Group (Beijing) and the Tangshan Iron and Steel Group (Hebei), is listed as a key project China's 11th five-year plan. The project is also part of relocation plans for the Shougang Group.

Making it one of the largest intergrated steel mills in the world, phase I of the project has a total planned steel production capacity of 9.7 million tons per year to be built in two stages. This would make it one of the largest steel mills in the world. In the first stage of Phase I, the project will have an annual steel production capacity of 4.85 million tons. Construction comprises two coke ovens, one sinter, one blast furnace, three converters, two continuous casting machines, one hot rolling mill and common facilities. The project is expected to begin operation in October 2008.

As of the end of March 2008, the investments for the project reached $2 billion. So far, construction engineering has cost $929 million and equipment costs totaled $915 million. Other expenditures account for the remaining $118 million. A dock, coking plant, and iron, steel and hot mill are all under construction as scheduled. Construction on the foundation and the structure of main facilities has been completed.

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