Lingang zone extends steel industry chain to boost growth
How far can a piece of steel go? In the Lingang Economic Development Zone in Linyi, East China's Shandong province, the answer keeps being updated — from blast furnace molten iron to hot-rolled coil, from cold-rolled sheet to precision tubing, from scrap recycling to high-end products, with every step of hot rolling, cold rolling and deep processing continuing to expand.
Steel is the core foundation of the zone's industry. In recent years, Lingang has worked along the upstream and downstream of the chain, using leading enterprises as anchors to position supporting projects and build an integrated industrial ecosystem covering smelting, hot rolling, cold rolling and deep processing.
In advanced special steel, the 2.7-million-ton special steel project of Linyi Steel Investment Special Steel focuses on smelting and hot rolling, expanding production of alloy structural steel for engineering machinery and supplying high-quality raw materials to downstream pipe-making and precision processing companies. Supported by these leaders, the zone has built key projects including 6 million tons of ultra-thin sheet, 300,000 tons of high-strength steel deep processing and 2.25 million tons of cold-rolled coating.
In stainless steel, key projects including 700,000 tons of bar and wire rod hot rolling and 100,000 tons of seamless steel pipe are advancing around leading enterprises such as Steel Investment Stainless Steel and Lingang Nonferrous Metals, connecting the chain from smelting to sheet and bar products to deep processing. The flexible production line for 100,000 tons of high-end stainless steel seamless pipe of Shengyang Group completed equipment installation in just 146 days and started trial operation 30 days ahead of schedule.
"A flexible line covers specifications from 14 to 114 millimeters and can adapt to multi-variety, small-batch customized production. Once in operation, the project will further build a complete chain covering smelting, bar and pipe," said Fan Haitao, head of the project.
Projects are the lifeline of industrial development. Xu Congdong, head of the Shandong Chentai Precision recycled resources project, said 90 percent of the total workload is complete and production is imminent. Once built, the project can produce 2 million tons of quality furnace charge a year, creating a closed loop of resources, products and recycled resources, securing raw material supply while shortening transport distances and reducing logistics costs.
The improving chain has driven downstream deep-processing enterprises to expand. At the workshop of Shandong Huaxingyuan Material Technology, machines are running at full capacity. "This year we have expanded capacity and product categories, adding a cut-to-length line and a platform processing line. In the first half, our output value exceeded 200 million yuan ($28 million), and orders extend to 2028," said deputy general manager Yang Wen.
Newly settled small and medium-sized enterprises are also contributing. At the site of the 3-million-unit fire extinguisher steel cylinder project of Linyi Lianao New Materials, construction is in full swing. With total investment of 136 million yuan ($19 million), the project will build two production lines. "Our biggest advantage is the support of Lingang's 100-billion-yuan steel chain. Upstream companies such as Steel Investment Special Steel and Shangang Yongfeng can supply the special steel plate and seamless pipe we need directly, saving long-distance transport and cutting raw material costs by more than 15 percent," said deputy general manager Xue Feng.
From January to August this year, the zone's added value of industrial enterprises above designated size grew 18.5 percent, and general public budget revenue rose 12.3 percent, both ranking first in the city. The quality steel chain generated output value of 45.09 billion yuan ($6.3 billion), up 13.3 percent.
Editor：韩蒙蒙