Baosteel to proceed with USD 8.7 billion steel plant project
[2008-12-23 17:04:27]
Baosteel Group Corporation, China’s biggest steelmaker said that the global economic slowdown would not deter its plans for a CNY 60 billion (USD 8.7 billion) steel plant project.
Baosteel said recently in a statement to the Shanghai stock exchange that the Zhanjiang, Guangdong province project, which would increase capacity by a third is “necessary” for development.
Baosteel is relying on the Zhanjiang project and other expansions to propel it to become one of the world’s top three producers. Steel demand, which has slumped with the economic slow down may rebound next year because of low inventories.
The China Securities Journal cited MR Qi Xiangdong, vice chairman of the China Iron & Steel Association as saying that China’s steel demand, the largest in the world may rebound from the Q2 of next year because of the government’s spending on railways, airports and housing under its CNY 4 trillion (USD 582 billion) stimulus plan.
