Baosteel starts up Zhanjiang project
Resource from: CBCC Likes:271
Oct 12,2015
Shanghai-based Baoshan Iron and Steel, or Baosteel, commenced trial operations at its steel project in Zhanjiang, Guangdong province, on Friday with its No 1 blast furnace going on stream amid concerns of a glut in the industry.
Work on the project began in 2013. The company said in a regulatory filing that the blast furnace has a capacity of 5,050 cubic meters, and will produce 4.1 million tons of molten iron every year.
Located in Donghai Island, the Zhanjiang steel factory consists of two blast furnaces, pier berths and other production and auxiliary facilities. Upon completion in September 2016, the base will be able to produce 8.75 million tons of crude steel every year, said the notice.
The trial production will last three to six months, which means the blast furnace will officially start operations next year, an unnamed company official told Caixin.com.
The Zhanjiang project was set up four years ago with a registered capital of 20 billion yuan ($3.7 billion).
Amid the market downturn and slowing economic growth, the Zhanjiang project is expected to boost market confidence and set a good example of phasing out old-fashioned capacity with state-of-the art and eco-friendly technology, said analysts.
Over the last couple of years, China's steel industry has been squeezed by oversupply and low profits. During the first six months of the year, 26 out of the 55 listed steel companies reported a loss, with the total losses reaching 10.69 billion yuan, according to Wang Guoqing, director with Lange Steel Research Center.
"Although the project is facing a sluggish market, its advanced technology and equipment will give Baosteel more competitiveness in terms of lower emissions and energy consumption, high efficiency," said Zhang Tieshan, a senior analyst with industry information site Mysteel.com.
"Compared to the Shanghai plant, the Zhanjiang project is closer to raw material supplies from Brazil and Australia, and is also more adjacent to its target market in Guangdong province and Southeast Asian countries," Zhang said.
According to Zhang, the shorter distance to raw materials and the end market will enable Baosteel to save a lot in logistics cost.
In Guangdong, the annual steel product demand is estimated at about 60 million tons. However, local steel mills can supply only about 10 million tons. Baosteel's Zhanjiang project will offer an alternative to local buyers, according to the Shanghai-headquartered steel-maker.
(CBCC)
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
Previous Wafangdian Jinfeng Bearing Manufacturing announced a utility model patent
Next Henan Bearing Product Quality Supervision and Inspection Center built by LYC passed the provincial inspection
Next Henan Bearing Product Quality Supervision and Inspection Center built by LYC passed the provincial inspection
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
