Mining News Pro - A Chinese steel company, ‘Zhejiang Yongjin Metal Technology Co. Ltd (ZYMTCL)’ has recently announced its plans to invest RMB 1.81 billion (USD 276 million) to build a precision stainless steel processing project in the south of the country in Yangjiang city of Guangdong province.
The project which is scheduled to be launched by the end of 2020 will be producing high-quality stainless steel strips with an annual capacity of 680,000 tonnes.
The location is strategically chosen by the company’s management as the new plant will be closer to the Foshan city in Guangdong province which is already a major market for ZYMTCL and it will also be closer to organisation’s key raw material (nickel and billet) supplier, Guangdong ‘Guangqing Metal Technology Co (GMTC)’.
GMTC is a joint venture created by Tsingshan Holding Group Co and state-backed Guangdong Guangxin Holding Group and has an annual nickel-alloy production capacity of 300,000 tonnes and stainless steel billet capacity of 2 MnT.
The two companies Yongjin and Guangqing have already signed a cooperation agreement on hot-rolled stainless steel coil supply but did not reveal details of the contract.
The first phase of the project is due to open in July 2019, with the capacity of 300,000 tonnes per annual.
About Zhejiang Yongjin
Zhejiang Yongjin Metal Technology Co. Ltd was established in 2003 and is headquartered Zhejiang province. It specializes in producing precision stainless steel cold-rolled wide strip and has an annual production capacity of 7.5 MnT for precision stainless steel cold wide strip.
In February 2014, the Company signed a “Cooperation Agreement” with Qingtuo Industrial, a subsidiary of Tsingshan Holding Group, and decided to jointly set up ‘Fujian Yongjin’ with a shareholding of 70% and 30% respectively. At present, it has achieved an annual production capacity of 2.5 MnT of cold-rolled stainless steel plate.
ZYMTCL and its two subsidiaries, Jiangsu Yongjin and Fujian Yongjin, currently have a combined production capacity of 1.58 billion tonnes of steel.
The new project of Zhejiang Yongjin is also in line with the company’s target of creating a stainless steel industry in the city worth over 100 billion yuan by 2020.
According to an industry association, China is expected to have 37 MnT of stainless steel capacity by 2018.