The closure of the old plant of Sichuan Province-based Chinese steelmaker Dazhou Iron and Steel Group (Dazhou Steel) was officially launched on March 26 and will be completed by the end of this month, as announced by Dazhou Steel.
Dazhou Steel is a wholly-owned subsidiary of Liaoning Province-based Chinese steelmaker Fada Group. It was originally built in 1958 and was an important vanadium and titanium steel production base in the southwest region of China.
Dazhou Steel’s old plant had an annual capacity of 3.0 million mt of crude steel and 3.5 million mt of finished steel.
On June 28, 2022, the groundbreaking ceremony for the main project of relocation and upgrading of Fangda Group's Dazhou Steel was held in the Eastern Economic Development Zone of Dazhou. After nearly three years of intensive construction and trial operations, Dazhou Steel’s new plant with an annual capacity of 3 million mt is ready to start production.
The new plant will rely on Sichuan Province’s high-quality vanadium and titanium magnetite iron ore resource advantages, to build a set of integrated resource utilization enterprises, covering construction steel, vanadium and titanium multi-dimensional composite new materials, high-quality special steel, coal and coke, clean energy and chemical industries, with an annual output value reaching RMB 30 billion ($4.2 billion). Dazhou Steel plans to build a total of 10 million mt of steel capacity, including 5 million mt in the first phase (two steps: 3 million mt first and then 2 million mt, while leaving space for another 5 million mt in the second phase.