China Daily reported that the construction of the CNY 69.6 billion Baosteel Zhanjiang Iron & Steel Co project is under way as planned.

The person, who refused to be identified, dismissed media reports last week that the huge project in Zhanjiang, Guangdong province, came to a stop because of over capacity in China iron and steel industry.

An unidentified person with the media department of the Shanghai based Baosteel Group Corp said the Zhanjiang project is in its preparatory stages which is a normal process.

A person with the South China operation of Baosteel said the Zhanjiang project is progressing according to the plan.

Construction started on May 31. The plant is expected to go into operation in 2015. It is designed to turn out 9.2 million tons of iron and 10 million tons of steel annually.

Source - China Daily

(www.steelguru.com)