Shiheng Special Steel’s 4.65mn mt annual capacity plant started production as part of the company’s capacity adjustment and transformation project in Shandong province, China.
The new special construction steel cluster project was put into production 55 days ahead of schedule with an investment of more than CNY15bn ($2.29bn). The plant has eight main production lines and is expected to add CNY20bn to the company’s sales income.
Under the steel industry transformation policy, Shiheng Special Steel’s production capacity is enhanced to 4.65mn mt from the earlier 2.55mn mt. New production lines have twice the efficiency of the old line. The company had to shut more than 10 obsolete production lines which cut production capacity by over 2mn mt. The pollution indicators of the plant have improved with dust emission reduced to less than 5mg per cubic meter from 10mg.
Besides, the project’s industrial cluster houses more than 20 large and medium-sized companies operating in the downstream chemicals, pharmaceuticals, and composite materials sectors.