China unveils plans for huge steel plant

BEIJING, Sept 4 (AFP) China has unveiled plans to build one of its largest steel plants at a cost of 30 billion dollars, state media reported today. brThe plant is to be located in Fangchenggang, a port city in Guangxi region in China's south, the Economic Information Daily said. brIt will require a total investment of 204.9 billion yuan (30 billion dollars), the report said. brThe setup of the steel-making port base in Guangxi is expected to improve the efficiency of iron ore imports, Su Aik Lim, an analyst with Fitch Ratings in Beijing, told AFP. brIt can reduce the transportation costs for steel products sold in China's central and western markets, given that the country's large steel makers now cluster in the north and east, he said. brThe facility is the result of a joint venture between Wuhan Iron and Steel Group and the Guangxi regional administration's agency for the management of state assets, according to the paper. brThe plant is expected to have an initial annual capacity of 10 million tonnes, but that will eventually rise to 30 million tonnes a year, it said.