China to construct sizeable iron and steel base in coastal area

Preparation for building a 10-million-ton iron and steel production base is well under way in Fangcheng Port in the Guangxi Zhuang Autonomous Region in South China.

The Wuhan Iron and Steel (Group) Corporation in Central China's Hubei Province and the Liuzhou Iron and Steel (Group) Corporation in Guangxi are building the project jointly with an investment of more than 60 billion yuan.

According to Hu Wangming, deputy general manager of Wuhan corporation, specialists' evaluation of a report on the use of offshore area and influence of oceanic environment is completed and submitted to the State Oceanic Administration for approval.

Such base will make full use of the geographic advantage of the coastal area and the deep-water port, which is conducive to exploit foreign ore resources and optimize the layout of Chinese iron and steel industry, Hu said.

He noted that the base would focus on the production of steel products with high technology and high added value, such as hot rolled sheet and hot rolled wide plate.

Construction of this base will bring domestic and foreign markets and resources into full use, said Yan Kaiyong, director of the equipment management department of Liuzhou corporation.

Yan predicted that the output of this base would meet the iron and steel demand of southwestern and southern China, and narrow the supply and demand gap of iron and steel in some ASEAN countries.

The steel consumption in southwestern China will reach 62.80 million tons by 2010 and the current annual output of steel in this area is less than 26 million tons. The self-supplying ratio is only 60 percent in southwestern China consisting of the Guangxi Zhuang Autonomous Region, Chongqing municipality and Sichuan, Yunnan and Guizhou provinces.

Yan forecast that the consumption of steel in ASEAN countries by 2010 will reach 64 million tons and their current production capacity is 18 million tons and their capacity of rolling steel is 30 million tons.

Located at the Qisha peninsular of Fangcheng port, the base enjoys sound infrastructural facilities and natural conditions.