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China's top steelmaker Baowu Steel Group and regional producer Fujian Sangang Group have signed agreements to invest 20 billion yuan (USD 3 billion) in two separate steel projects in the south-eastern Fujian Province of China. Baowu controlled Taiyuan Iron and Steel Group will invest 10 billion yuan in a Fujian project that aims to produce 3.22 million tonnes per year of stainless steel and Fujian Provincial Government owned Fujian Sangang will spend 10 billion yuan on facilities to make fine steel products and related infrastructure including a docking berth.
Southern regions are an increasingly popular investment destination for steel mills in China due to rising demand and more lenient environmental regulations compared with the more polluted north.
According to the National Bureau of Statistics, Fujian Province churned out 38.6 million tonnes of steel products in 2020. Stainless steel makers Baosteel Desheng, Tsingshan Holding Group and Fujian Fuxin Special Steel all have mills in the province.
Meanwhile, Wuxi Xinsanzhou Steel Co will invest in a 3.5 billion yuan cold-rolled steel project in Fujian, the Fuzhou News reported, with annual capacity set to reach 1.1 million tonnes.