Chongqing to build Chinas largest steelmill

Local sources report that Chongqing Iron & Steel Co Ltd is expected to be China largest shipbuilding steel producer by the end of next year when the first phase project of its relocation will put into production with an annual capacity of 6.5 million tonnes. The construction of its new 4,100mm wide plate mill will be finished next month and there will be three wide and heavy plate rolling mills by end 2010 for ship plates.

According to the report, demand for shipbuilding steel plates will be strong in the next two years since China has a large order backlog for newbuildings. The country completed 30 million DWT of ships last year and consumed 12 million tonnes of shipbuilding steel. According to the expectation of China Association of National Ship Industry, the nation will complete over 80 million DWT of ship orders during 2008 to 2009 requiring about 30 to 35 million tonnes of shipbuilding steel, among which ship plates will account for about 80%.

Dong Lin, board chairman of the steelmill which is located near the Changjiang river, noted that “We have an enviable geographical advantage, through which we can easily send our products to users surrounding the Changjiang River Delta, where about 70% of ships are built.”