Guangdong Steel Group expected soon
Author: unknow
Views:
Date:
2008-6-20
Source: CISA
The NDRC officially approved early preparation work for Guangdong Zhanjiang steel base on March 17, which will set up by the State-owned Assets Supervision and Administration Commission of Guangdong Province (SASAC of Guangdong) and Baosteel Group on the premise of Guangdong’s promise to eliminate 10 million tons of outdated steel capacity. According to a responsibility letter, the province will scrap over 10 million tons of outdated capacity during the 11th five-year plan (2006-10).
The construction of assistant infrastructure for Zhanjiang project is proceeding smoothly. For example, Jianjiang water supply hub and a canal irrigation update in Leizhou broke ground on June 3. Shugang road linking the steel base and city proper and railway branch lines in East Island will start construction by the end of 2008 and in the first half of 2009 respectively.
According to a well-informed source, Guangdong Iron and Steel Group in the air will take Zhanjiang steel base as a vehicle and incorporate Guangzhou Steel and Shaoguan Steel with Baosteel, with its headquarter in Guangzhou. Baosteel will hold a 51% stake in the new company and SASAC of Guangdong hold remaining 49%.