Steelmaker China Baowu Group on November 30 signed a strategic cooperation agreement with the governments of Jiangsu province, Nanjing city and Yancheng to launch a 20 million mt steel production base in the coastal city of Yancheng, its listed unit said in a stock exchange filing on Friday November 30.
With new capacity in the coastal city, Baowu will shut all its iron and steel making capacity in Nanjing city by the end of 2028. This would help reduce the impact of lung-damaging air pollution.
The first stage of the Yancheng project, with annual capacity of 8-10 million mt, will start construction in 2019 and is expected to be completed within three years.
The production base will include ports, coking plants, power utilities, sintering, iron and steelmaking as well as steel-rolling plants.