Posted on 06 Sep 2022
The municipal government of Tangshan in China (china)’s Hebei Province held official signings for a total of 206 projects on August 28. In particular, there were three steel projects, with an overall investment amounting to RMB 54.477 billion
($7.9 billion). Their total capacity is expected to slightly less than 20 million mt, but the new projects will still be carried out under the capacity replacement program, which prevents overall steel capacities from increasing via the idling of some older equipment.
HBIS’ Laoting high-strength and high-performance steel production base with an annual crude steel output capacity of 7.47 million mt will be built with an investment of RMB 26.277 billion. Laoting's capacity is expected to be 4.05 million mt of steel rolling capacity under the first phase with one 3,200 cubic meter blast furnace and one 230 mt converter launched. Under the second phase, the company will install two 120 mt electric arc furnaces. The government favours the installation of EAFs instead of BOFs as the technology in question is greener.
To build this new project, HBIS needs to eliminate 3.34 million mt of iron-smelting capacity and 5.07 million mt of steelmaking (steelmaking) capacity. Accordingly, Laoting Steel will purchase 1.65 million mt of iron-smelting capacity and 1.92 million mt of steelmaking (steelmaking) capacity from subsidiaries of HBIS, while the remaining capacity will be resolved via internal balancing by the company. The capacity replacement plan was submitted by the company in 2019 and received approval in 2021.
Donghua Steel’s Fengnan quality steel production base is expected to have an investment of RMB 18.0 billion ($2.6 billion), and will have an annual capacity of 6.5 million mt of high-strength rebar and steel plate Zunhua city’s green steel production base is expected to have an investment of RMB 10.2 billion ($1.5 billion) and is expected to produce 5.7 million mt of crude steel. Zunhua city’s project is to integrate part of capacities from Ganglu Iron and Steel, New Baotai Iron and Steel, Jinxi Iron and Steel and Bazhou Xinli Iron and steel, to implement production reduction and replacement for two phases of the new project.
Source:Steel Orbis
