Shangai: China's biggest steelmaker Baosteel Group is to buy an eight percent stake in Zhangjiang Port Group Co. to facilitate imports of raw materials for its planned steel plant in Guangdong province, reports Bloomberg. Zhanjiang, the nearest Chinese port to Australia, can handle as much as 200,000 metric tons of iron ore and 300,000 tons of crude oil, Shanghai-based Baosteel said in a statement on its Web site yesterday.
Baosteel received government approval in March to start work on its 10m tonne capacity Zhanjiang plant, which will increase total steelmaking capacity by a third to meet rising demand. The project could cost 60bn yuan ($8.8bn), Chairman Xu Lejiang said in April.
Zhanjiang Port is spending 4 bn yuan to expand the port including the construction of two docks for containers and two for receiving pellets, Baosteel said. The steel producer didn't say how much the investment would cost or who the seller of the stake is. [18/07/08]
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