Brewing for more than 20 years of Shanghai Baosteel Group Corporation (hereinafter referred to as Baosteel) project in Zhanjiang, finally a low-key ignition operation.
The morning of September 25, Baosteel iron and steel base in Zhanjiang 1th, the ignition of the first production line started operation. Blast furnace design capacity, 1th 5050 m, design generation aged 22, annual 4.115 million tonnes of molten iron. In the blast furnace production, the base of the 2250mm hot line, 2030mm cold rolling line will be put into use in January and March of next year, and the 2nd BF planned to put into operation in June next year.
This iron and steel base in Guangdong and Hainan provinces adjacent Donghai Island, Zhanjiang city, by the Guangdong SASAC joint venture with Baosteel, Baosteel Zhanjiang iron and steel company limited (hereinafter referred to as Baosteel Zhanjiang) is responsible for the project, the company was founded in April 2011, with registered capital of 20 billion yuan. Bao Steel Group, Baosteel (600019. SH) 90% stake in Baosteel Zhanjiang, Guangdong Hang Kin investment holdings limited ownership of the remaining shares.
At the end of June this year, Baosteel Zhanjiang was 37.86 billion yuan in total assets and net assets of 18.8 billion yuan. Loss of 90 million yuan in the first half of this year.
As early as in 1978, the metallurgical industry (miit), intends to build a steel plant in Zhanjiang, but until 1992, Baosteel Group and started preliminary work in Guangdong Province, Guangdong Province, approved the establishment of the East China Sea Islands economic development experimental zone, supported the launch of Zhanjiang steel project in the East China Sea Islands.
In November 2004, Guangdong Province formalized Baosteel Zhanjiang steel project's main investor, and Zhanjiang city, Guangdong provincial development and Reform Commission, China, Baosteel Group, the Quartet signed a construction intention of Shaoguan iron and steel group, Baosteel holding clearly.
In March 2008, Baosteel Zhanjiang project got "flagging". National development and Reform Commission reported to the State Council, approved Zhanjiang steel project to carry out preparatory work. On May 24, 2012, the national development and Reform Commission formally approved the project; a week later, Baoshan Iron and steel base in Zhanjiang held the groundbreaking ceremony of the project.
However, the point of the project was formally approved in Zhanjiang, how awkward for Baosteel.
From Baosteel Zhanjiang project got "flagging" beginning in 2008, the steel industry began to down the track, Mills area mired in losses, including industry leader Baosteel, are not immune to revenue continues to decline in recent years. Industry insiders describe project, Baosteel Zhanjiang "got up early to catch a late set."
"Baosteel Zhanjiang to mount items because Shanghai Baoshan Iron and steel base capacity transfer. "Information steel analyst Liu Xinwei, China's leading steel maker urgently needs a new production base. "Location in southern China, due to less local steel mills, small capacity, the market demand. "He said.
The data provided by Baosteel shows that Guangdong Province is the largest steel consuming markets, steel self-sufficiency rate is about 40%, transfer or import of, most of the steel from the province. In fact, China "North South steel" unreasonable layouts, Baosteel Zhanjiang project is hoping to break out of this situation.
Baosteel Zhanjiang project based on creating "green carbon steel production base of the most efficient in the world." Main carbon steel market for automotive, appliance, machinery, construction, shipbuilding, container, railway, petrochemical, and other areas, providing hot-rolled sheet, using cold plate, hot dipped galvanized, heavy plate and other products.
Baosteel Zhanjiang projects, with another large State-owned steelmaker Wuhan iron and steel group (hereinafter referred to as Wuhan iron and steel) of Guangxi's Fangcheng port project "crash". Both were approved, and volume is (Fangcheng port project annual production capacity of 8.5 million tons of iron, 9.2 million tons of steel), is located about 250 km.
Interface Liu Xinwei told journalists, two steel base structure has a high degree of homogeneity, are dominated by home appliances, automobiles, for the southern market, production time is also very close, they might be "hand-to-hand combat."
"Home appliances, purchase resources fixed in the automotive industry, has formed a certain supply chain, relies on product quality and price advantage to enter the market in the future. "Lange steel information research center director Wang Guoqing said, Baosteel will open the South China market, depends on the ability to cut their follow-up market.
In addition to markets in South China, Baosteel also plans to "walk" in Southeast Asia. Chairman of Baosteel Zhanjiang iron and steel company, the Zhanjiang steel Project command Commander Zhao Zhouli, earlier said in an interview with the China Metallurgical news, Beibu Gulf area in Southeast Asia in the future there will be more than 80 million tons of steel production capacity, there is probably the world's iron and steel Center.
However, in Southeast Asia, it has new steel agglomeration. In Viet Nam Ha Tinh of Formosa steel mill under construction, the completion of the first phase of the project, the annual steel output reached 7.07 million tons.
Or aware of the fierce competition and present situation of steel overcapacity, claimed that "thousands of tons" Baosteel Zhanjiang construction scale of the project, there are certain cuts.
Unveiled in February this year, the iron and steel base in Zhanjiang, Guangdong project environmental impact report showed that Baosteel Zhanjiang base edition of the scale is adjusted to an annual output of 8.23 million tons of steel, steel 8.75 million tons. When the project originally approved "annual output of 9.2 million tons, 10 million tons of iron and steel" compared to down 10.5% and 12.5% respectively. In addition, the base Marina berths are lowered from 17 to 16, throughput decreased by 1.17 million tons a year.
Investment has been reduced. Baosteel Zhanjiang projects initially planned to invest 69.68 billion yuan, in 2013 when the project finally cuts to 41.5 billion yuan, due to an additional production line, total investment increase to 54 billion yuan.
Baosteel did not publicly explain the specific reasons of construction scale and investment flows shrink. Wang Guoqing analysis shows that changes in the steel industry, Baosteel has made investments and capacity adjustments, to ensure the efficiency of their output. Depth of China s nuclear technology exports it
The liberation daily reported, such as the investment cost per ton of steel more than 6000 Yuan, after being put into operation may not face long-term costs. In the context of deteriorating market, Baosteel can only scale back investment. Investment of about 5000 Yuan per ton of steel, Baosteel Zhanjiang project.
Meanwhile, Baosteel is also adjusting its production structures among the various production bases, in order to avoid further deterioration of the Zhanjiang base after the glut on the market. Zhao Zhouli has previously said, in order to build iron and steel base in Zhanjiang, Shanghai Baosteel cuts its base capacity, integration and eliminate backward production capacity of Guangdong Province, total production capacity of the Group showed a trend of shrinking. He disclosed that Shanghai and Guangdong to reduce the total capacity to more than 20 million tons.
Liu Xinwei believes that Shanghai Baosteel will continue to shrink in the future its capacity, and will gradually shift to Zhanjiang.