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China’s Baoshan Starts USD413.3 Million High-Grade Non-Oriented Silicon Steel Project
(Yicai Global) Dec. 9 -- Baoshan Iron & Steel began its CNY2.7 billion (USD413.3 million) non-oriented silicon steel structure optimization project in Shanghai yesterday.
The project, the world's first specialized plant for high-grade non-oriented silicon steel wholly targeting the new energy vehicle field, is set to finish and go into operation in March 2023.
The undertaking will raise the firm’s annual silicon steel output to 4 million tons, of which high-grade non-oriented silicon steel will make up 1 million, ranking it first worldwide, the Shanghai-based company announced yesterday.
Non-oriented silicon steel is a key basic material in the NEV industry chain that converts electrical energy into kinetic energy via a motor, and its performance directly affects energy conversion efficiency. Only a few steel plants worldwide had mastered the core technology for producing B50A350 high-grade silicon steel or above before the firm’s project kicked off.
Overseas steel plants have hitherto monopolized the technology, so China has long had to import vast amounts of high-grade silicon steel.
The scheme will significantly hike the ratio of high-grade silicon steel in the firm’s total silicon steel output, the firm’s chairman Zou Jixin stated, adding, “it will become the firm’s new profit growth point.”
Strategic Support
The project will also solve the shortage of high-grade non-oriented silicon steel in the NEV field and greatly buttress the country’s new energy strategy, Baoshan said.
Its stock [SHA:600019] was up 0.17 percent at CNY5.98 (91 US cents) in midmorning.
The company that has been developing high-grade non-oriented silicon steel for NEVs for over 10 years now claims a 60 percent market share in China and 30 percent globally and leads the world’s steel industry.
Baosteel Group set up Baosteel as a wholly-owned unit in February 2000.
China is the world’s largest NEV market, selling more than 1.2 million electric autos last year, making up 51 percent of the world’s total, and its sales will be 1.13 million units this year, the China Passenger Car Association projects.
