Guangzhou Steel Relocation Confirmed

Guangzhou Steel has decided to transfer the capacity of its Baihedong Workshop to the Zhanjiang Steel Project, a giant steel complex initiated by Baosteel. Besides, Guangzhou Steel has eliminated all of its old capacity in a bid to promote Baosteel's reconfiguration of Guangzhou Steel Group and Shaoguan Steel Group.

A source of Guangzhou Steel said the company has nothing to do with the Nansha-base Guangzhou High-end Sheet Project proposed by Guangzhou Steel Group. The Nansha site, a joint venture with Japan's JFE, aims at serving the auto, home appliance and shipbuilding sectors in the Pearl River Delta region and now produces 400,000 tons of cold-dip galvanized sheet and 1.2 million tons of cold rolled sheet per year. The source added what concerns the company is how to resettle thousands of laid-off workers who are not accepted by the new site in Zhanjiang.