China’s Zhejiang Yongjin Metal Technology Co. Ltd. plans to invest 1.81 billion Chinese yuan to build a precision stainless steel processing project in Yangjiang city in the country’s Guangdong province, Reuters reported June 26.
The project will have a production capacity of 680,000 tonnes per year and is set to launch by the end of 2020. Its initial phase with a 300,000 t/y production capacity will come online in July 2019.
“The new capacity will be close to our major market of Foshan city in Guangdong, and also close to our raw material supplier, Guangdong Guangqing Metal Technology Co,” a company spokesperson said.
Guangdong Guangqing is a joint venture between Tsingshan Holding Group Co. and state-backed Guangdong Guangxin Holdings Group Ltd.
Zhejiang Yongjin and Guangdong Guangqing struck a cooperation agreement on hot-rolled stainless steel coil supply in May. The details of the contract were not disclosed.
The new project is also in line with Yangjiang’s goal of establishing a stainless steel industry in the city valued at more than 100 billion yuan by 2020.
Zhejiang Yongjin and its two subsidiaries, Jiangsu Yongjin and Fujian Yongjin, have a combined steel production capacity of 1.58 billion tonnes.
As of June 25, US$1 was equivalent to 6.54 Chinese yuan.
