The biggest steel producer in the People’s Republic of China has begun a project in Henan to produce aluminium alloy commercially.
Baowu Steel Group said on Sunday that the project began in February 2019. It will represent an investment of US$1.07 billion, and the first phase will yield a plant with a yearly production of 300 thousand metric tons per annum.
The plant will be operated by subsidiary Baowu Aluminium Group. According to a company statement the project is a “landmark” move for the steel firm’s foray into new metals market avenues.
Initially the plant will produce 80 thousand tons per annum of aluminium alloy automotive sheets, 50 thousand metric tons per annum of aluminium alloy medium plates, and 170 thousand metric tons of alloy plat and strip.
Ultimately the plant is slated to have a nameplate capacity of 600 thousand metric tons per annum, but the firm did not provide a time frame for full production at the plant.
China Baowu Steel Group Corp., Ltd. is headquartered in Shanghai and is the result of the merging of Baosteel Group and Wuhan Iron and Steel Corporation four years ago. The firm is the second-biggest producer of steel on Earth, boasting production last year of 95.5 million metric tons of steel and steel alloys.
Baowu began in 1978 as Baoshan Iron and Steel as a result of Beijing’s economic reforms that year. It continues to be a fully state-owned entity.