Shougang's Caofeidian mill to start production in March

By Tong Hao (chinadaily.com.cn)
Updated: 2009-01-09 20:41

Production at a joint venture between Shougang Group, China's sixth-largest steel maker and Tangshan Iron and Steel Co Ltd, the country's biggest steel mill, is to become operational from March 2009.

The Hebei-based Caofeidian plant will have a production capacity of 4.85 million tons upon completion which will eventually rise to 10 million tons, China Business News reported, citing Wang Qinghai, general manager of Shougang.

The companies originally expected production to begin at the end of 2008 but equipment debugging and the slack iron and steel market forced the company to delay production.

The construction of the 67.73 billion yuan ($9.89 billion) plant is part of Shougang's efforts to shift its production facilities away from Beijing in a bid to reduce pollution in the capital and cut costs. The new mills are close to iron ore ports.

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