Caofeidian Steel Works to Start No.2 Blast Furnace in 2009 End

Shougang Jingtang Iron, which is operated by Chinese major steel makers, Shougang Group and Tanggang Group, completed the first phase of the construction for Caofeidian steel plant operating at monthly 300,000 tonnes of raw steel production. The utilization is around 80%. The firm launches the second phase facilities gradually from end of 2009. The production capacity reaches 9.7 million tonnes per year after the second phase. The production could be 4-6 million tonnes in 2010, according to the company source.

The first phase includes no.1 blast furnace with 5,500 cubic meters of capacity, steel making shop, no.1 hot strip mill with 2,250 millimeters width and cold rolling mill. The firm started the operation of the blast furnace in May after the commissioning of hot strip mill in December 2008 and of steel making shop in March 2009. The firm now starts no.1 cold rolling mill.

The raw steel output capacity is around 13,000 tonnes per day for the first phase, according to the company source. The firm plans 10,000 tonnes per day of production in October to make 300,000 tonnes of raw steel and hot rolled coil in the month.

The firm launches the operation as early as end of 2009 for the second phase including no.2 blast furnace with 5,500 cubic meters of capacity. The no.2 hot strip mill with 1,580 mm of width will be started in end of 2010.

The new steel plant has major environmental facilities including coke dry quenching and blast furnace top pressure recovery turbine generation. The firm ramps up the operation as one of the models of modernization of Chinese steel industry under the government’s steel policy including consolidation, building major coastal steel works, transfer from urban area, shifting to higher grade products and energy saving and better environmental actions.