The National Development and Reform Commission (NDRC) formally approved two steel base projects in Fangcheng port, Guangxi Zhuang autonomous region and Zhanjiang, Guangdong province on March 17, 2008. The former will be jointly developed by Liuzhou Steel, Guangxi and Wuhan Steel (Wisco) and the latter by Baosteel, Shaoguan Steel and Guangzhou Steel.

According to the NDRC, Guangxi and Wisco will have to eliminate 5.41 million tons of pig iron capacity and 9.1 million tons of steel capacity and realize consolidation between the two through building the steel project in Fangcheng port. As to acquisition of Shaoguan Steel and Guangzhou Steel by Baosteel, a new company, controlled by Baosteel Co, will be established in Guangzhou. Guangzhou Steel will have to eliminate all pig iron, steel making and rolling capacity while Shaoguan Steel conduct technical reform by scraping outdated blast furnaces and small converters. Taking advantage of the Zhanjiang project, Guangdong has to eliminate 10 million tons of outdated steel capacity.