en.Wedoany.com Reported - Shandong Iron and Steel Company Ltd. (Shandong Iron & Steel, 600022.SH, headquartered in Jinan, Shandong Province, China) disclosed on the investor relations interactive platform on June 5, 2026, that its controlling shareholder, Shangang Group, is advancing the preliminary preparations for the Phase II project of the Rizhao High-Quality Steel Base in accordance with the relevant requirements of the Shandong Provincial Government and China Baowu Steel Group (China Baowu, referred to as "Baowu"). According to public plans, Shangang Group, together with Baowu, intends to invest 75 billion yuan in this project, with a total designed annual capacity of 11.5 million tons of steel. The Phase I capacity of 8.5 million tons has been fully completed and reached production targets. This project has been included in the list of key major projects prioritized in the Shandong Provincial Government Work Report for 2026.
Shandong Iron and Steel Group Rizhao Co., Ltd. (Shangang Rizhao), established in 2009, is a controlled subsidiary of Shandong Iron and Steel Company Ltd., located in Lanshan District, Rizhao City, Shandong Province. It boasts unique geographical advantages with deep-water ports and convenient logistics. Its Phase I project was approved by the National Development and Reform Commission in 2013, with a total investment of approximately 54.36 billion yuan, and has now been fully completed and is operating stably. In late 2023, China Baowu acquired a 49% stake in Shangang Group through strategic investment, and its subsidiary Baoshan Iron & Steel Co., Ltd. purchased a 48.6139% stake in Shangang Rizhao for 10.703 billion yuan, forming a "dual participation" collaborative model.
The Phase II project plans a total capacity of 11.5 million tons, with the first step of Phase II having a capacity of 3.6 million tons and an investment of 22 billion yuan. It is scheduled to commence construction in November 2027 and be completed by November 2030, requiring approximately 1,169 mu of new land acquisition. The product positioning focuses on high-end premium steel plates, with the Shandong Provincial Government aiming for the proportion of high-end premium steel output to reach around 50%. On March 17, 2026, Baowu Chairman Hu Wangming visited Shangang Rizhao for an inspection, urging the steady advancement of the Phase II project and aiming to make Shangang Rizhao the most efficient base for China Baowu. Currently, the company is coordinating the preliminary work for the project, with specific plans pending further approval and announcement.
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