China steel : giant Baowu Group starts aluminium alloy production in Henan

BEIJING (Reuters) - China's top steel producer Baowu Steel Group has started production at the first phase of an aluminium alloy project with annual capacity at 300,000 tonnes in central province of Henan on Dec.20, the company said.

The project, operated by Baowu's unit Baowu Aluminum Technology, is considered as a "landmark" of the steel tycoon's extension to new materials industry, according to a company statement on late Monday.

The first phase of the project, kicked off construction in February 2019, has a total investment at nearly seven billion yuan ($1.07 billion).

The project is designed to produce 80,000 tonnes of aluminium alloy auto sheets, 50,000 tonnes of aluminium alloy medium plates and 170,000 tonnes of aluminium alloy plat and strip per year, the company said.

Total planned capacity at Baowu Aluminum is seen at 600,000 tonnes per year, it added.

($1 = 6.5474 Chinese yuan renminbi)

(Reporting by Min Zhang and Shivani Singh; Editing by Rashmi Aich)