Technology & Steel Application - News

Posted on 16 Nov 2012

Chinese steel producer Bayi Iron & Steel to use Corex plants to expand production

Bayi Iron & Steel Co., Ltd., a steelmaker belonging to the Chinese Baosteel Group, plans to more than double its current steel production capacity of seven million tons per annum in the northwestern province of Xinjiang by 2015. Hot metal production is to be increased on the basis of the Corex process, which proved its performance and environmental compatibility during the performance tests and operation at Baosteel in Shanghai.

The two Corex plants in Shanghai that were supplied by Siemens Metals Technologies, each of which has an annual capacity of 1.5 million tons, will be dismantled and reassembled at Xinjiang Bayi. Module 01 is scheduled to go into operation at the end of 2014, and Module 02 one year later.

Due to declining prices for heavy plate and as part of a strategic realignment of production in the Shanghai area, Baosteel has decided to cease steel production in the Luojing Works and dismantle the individual steelmaking installations, including the two Corex plants. It plans to rebuild the dismantled installations in various Chinese steel works. The Corex plants will recommence operation in Xinjiang Province. Commenting on the relocation of the two plants to a region that has an adequate supply of raw materials suitable for Corex, Dieter Siuka, Senior Vice President of Ironmaking at Siemens Metals Technologies, said, "The Corex process will give the company clear commercial advantages at the new location."

In contrast to the conventional blast furnace route, the Corex process will allow local coal to be used, which is significantly cheaper in Xinjiang than in the Shanhai area. Secondly, it offers an additional advantage in that the generated Corex export gas can be used as a fuel gas in the downstream facilities to generate electricity or for the production of direct-reduced iron in a region that has almost no resources of natural gas. Siuka added, "The overall production costs using Corex technology will consequently be considerably cheaper compared to the conventional blast furnace route."

Bayi Iron & Steel currently produces flat and long products. Expanding its steel production capacity in Xinjiang will also stimulate the development of the region's infrastructure and industry.


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