It is reported that Sinosteel Corporation signed formal agreement with Liaozhong county government and the management committee of Shenyang economic technology development zone to build metal resources processing and distribution projects in the two sites and make Shenyang the metal base of the North.

As per report SinoSteel decided to invest CNY 6 billion and CNY 2 billion in Liaozhong and Tiexi respectively for the prophase projects. With about 8 billion to 10 billion fund, it wants to develop a modern steel service base in Shenyang including scrap processing, iron ore storage, acid pellet processing, dismantling of trash car, steel product processing and distribution etc.

Once completed, the base will process and distribute 1.5 million tonnes scrap, dismantle 500,000 pieces of trash cars, process 20 million tonnes iron ore fine and produce 5 million tonnes acid pellet annually, with predicted sales income of CNY 40 billion to CNY 50 billion, profits of CNY 1.5 billion to CNY 2.0 billion and tax of CNY 1 billon to CNY 1.5 billion.

Mr Huang Tianwen president of Sinosteel said he was quite interesting in investing in Shenyang, expecting the items to start work within the year and help boost the local economy as soon as possible.