By Xinhua
Beijing : Baosteel Group, China’s largest steelmaker, has launched a 19.4-billion-yuan ($2.6 billion) joint venture with Hansteel Group to build a steel plant at Handan city in north China’s Hebei province.
The steel plant, Hangang Hanbao Iron and Steel Co., will be able to produce 4.6 million tonnes of high-grade steel plate annually on completion. Hansteel and Shanghai-based Baosteel will invest six billion yuan each for its registered capital.
The new plant will help in optimising the nation’s steel industry structure, said Liu Rujun, chairman of Hansteel Group, at the opening ceremony Saturday.
The National Development and Reform Commission approved the plan of building the steel plant in Dec 2005.
The first stage of construction of the plant, which includes a 3,200-cubic-metre blast furnace, is expected to finish in the first half of 2008.
The plant is expected to be commissioned by the end of 2010 when construction is finished.
The output of crude steel by Baosteel and Hansteel in 2006 stood at 22.5 million tonnes and 6.4 million tonnes, respectively.