The Baosteel Group reaches an agreement with the Shanghai government in July to move part of its production capacity out of Shanghai for the sake of strategic optimization. The agreement is still subject to the central government’s approval.
The capacity adjustment involves moving the company’s stainless steel, special steel production and Luojing Corex project with a total capacity of more than 6Mt, accounting for 30% of Baosteel’s production in the Shanghai area.
The production capacity will be transferred to Baosteel’s new steel projects at Zhanjiang in south-eastern Guangdong province and southern Xinjiang Uygur Autonomous Region. The company plans to complete the adjustment within five years.