Magang Hefei Iron Steel's Relocation Project Receives Approval from NDRC

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Researched by Industrial Info Resources China (Beijing, China)--Magang (Hefei) Iron & Steel Company Limited's (Hefei, Anhui) relocation project received approval from the National Development and Reform Commission (NDRC) in November 2012, according to a recent announcement from the NDRC.

Magang Hefei was based on the former Hefei Iron and Steel Works, which was built in 1956 and acquired by Maanshan Iron & Steel Company Limited (Magang) (Maanshan, Anhui) in 2006. As the plant is near downtown Hefei, the government has decided to relocate it outside the town.

According to the NDRC's approval, Magang Hefei will be relocated to Feidong County and Maanshan City, under the premise of reducing 850,000 metric tons per year of crude steel production capacity in Anhui. The existing 1.9 million metric tons per year of iron and 2 million metric tons per year of steel production capacity in Magang Hefei Iron Steel will be eliminated, and the existing smelting and hot-rolling steel production capacity will be moved to the headquarters of Magang in Maanshan City. A new cold rolling mill and steel product deep-processing base, with an annual processing capacity of 2.55 million metric tons per year, will be built in Feidong County. Upon the elimination of 900,000 metric tons per year of inefficient iron and 1.4 million metric tons per year of inefficient steel production capacity in the headquarters of Magang, the final production capacity in the headquarters of Magang will be 13.55 million metric tons per year of iron, 15 million metric tons per year of steel and 14.08 million metric tons per year of steel products.

As reported, the total investment in the relocation project will be about $3.25 billion. Construction of the project mainly comprises the iron and steel production system, including a sinter; a coking oven; a blast furnace; an electric furnace; a converter; a refining furnace; continuous casting; a hot roll mill; a cold roll mill; continuous annealing and galvanization units; and the associated common and auxiliary facilities, such as an oxygen production unit, a combined-cycle power plant; a lime kiln, plate processing and distribution center; a steel structure processing and distribution center; and a steel wire products plant.

As part of the relocation project, a 1.2 million-metric-ton-per-year cold roll mill started construction in Feidong County in March 2011 and is expected to begin operations in 2013. According to the schedule, the entire relocation project will be completed in five years.

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