Jiangsu-based shagang Group, China’s largest private steelmaker,has inked an agreement with the Henan provincial government regarding its steel project via integration and restructuring with an overall investment of RMB 14.8 billion($2.25 billion). The project will be located in Shuiye county in the Yindu district of Anyang city, Henan Province, and will be implemented by Anyang Yongxing lron and Steel Co., Ltd, the wholly-owned subsidiary of Shagang Group, which has a steel capacity of 2.2 million mt annually at the moment. When construction of the project is completed, its annual iron-smelting capacity and steelmaking capacities will reach 4.64million mt and 5.5 million mt, respectively, and it will become the most influential high-end rebar and wire rod production base in central China.

Shen Wenrong, president of Shagang Group, recently stated that Shagang Group will take an active part in the transformation and development of steel enterprises in other regions of Henan Province through restructuring, acquisition, etc., through which , he said, the steel industry in Henan will be updated further.