An employee works at a factory of Baosteel Group Corp., China's biggest steel maker in Shanghai July 6, 2010. [Agencies]
Baosteel Group, the country's top steel maker, has obtained approval to build its high-grade carbon steel project in the southern province of Guangdong, a company official said on Tuesday.
Hu Xuefa, head of the energy department of Shanghai-listed Baoshan Iron & Steel Co, said the company aims to produce more high-end steel products while seeking more overseas resources to handle rising raw material costs.
"Baosteel is doing more study on high-end steel products so as to replace imports and will also try to tackle more overseas resources," Hu told reporters.
The plan for more high-end products, such as automobile steel, follows Beijing's call to restructure the country's excessive steel capacity and restrict exports of low-end products, like rebar.
Baosteel has said it aims to expand the Zhanjiang project to 10 million ton per year as part of its efforts to boost high-end steel products.
Dai Jian, deputy head of the energy department, said the company would continue to invest more in environmental facilities and plans to spend between 2 to 3 billion yuan this year, including upgrading Ningbo steel mill.
Baosteel plans to produce 50 million tonnes of crude steel by 2012.
