Liuzhou Iron & Steel Group, a prominent steel producer in Southwest China, has officially launched its No. 3 blast furnace at the Fangchenggang steelworks on November 26, 2024. This milestone event marks the completion of the first phase of the Fangchenggang project, which is a significant step forward in the company’s expansion plans. The total investment in this phase amounts to approximately Yuan 36 billion (around $4.96 billion).
The No. 3 BF at Fangchenggang joins the already operational No. 1 and No. 2 blast furnaces, which began operations in June 2020 and November 2021, respectively. All three of these blast furnaces have an inner volume of 3,800 cubic meters, a standard size for large-scale blast furnaces used in modern steel production. The commissioning of this third furnace boosts Liugang’s overall pig iron production capacity, strengthening its position as a major player in China’s steel industry.
In addition to the three blast furnaces, the first phase of the Fangchenggang project also includes the installation of four converters, which contribute to the plant’s steelmaking capacity of 9.2 million metric tons per year. The combination of blast furnaces and converters ensures that the facility has the necessary infrastructure to meet the growing demand for steel in both domestic and international markets. The pig iron capacity of the plant is now 8.5 million metric tons per year, which positions Liugang to produce large quantities of high-quality raw steel.
On the same day as the No. 3 BF’s commissioning, Liugang also announced the start of commercial production at its new heavy plate mill at the Fangchenggang site. This mill, with a capacity of 2.6 million metric tons per year, is capable of producing high-end wide and heavy steel plates. These products are essential for industries such as construction, shipbuilding, and heavy machinery manufacturing, where durability and strength are key requirements. The mill, which has a rolling width of 3.8 meters, was constructed in just one year, highlighting the speed and efficiency with which Liugang has managed its expansion.
The Fangchenggang project has a long history, having first been approved by China’s central government in 2012. Initially, the project was a joint venture between Liugang and Wuhan Iron & Steel Group. However, Liugang withdrew from the project in 2015 due to financial difficulties and the oversupply crisis in China’s steel industry, which led to significant losses. As a result, the project was stalled for several years, with Wugang being left to manage it alone. In 2018, after Wugang merged with Baosteel to form Baowu Steel Group, Liugang took the decision to re-enter the project, reviving the initiative and pushing forward with its completion.
With the No. 3 BF now operational and the new heavy plate mill in production, Liugang has significantly enhanced its capacity and product range. These upgrades are part of a broader strategy to modernize and expand the company’s steelmaking operations. The increased capacity will help Liugang meet both the growing domestic demand for steel and the needs of international markets, as China remains a key exporter of steel products.
