Phnom Penh: The world’s second largest steel producer is looking to move its blast furnace facilities from Xinjiang, China to Cambodia.
China Baowu Steel Group Corp., Ltd., China’s largest steel maker, is planning to relocate two 1.5 ton capacity blast furnaces and two converters to turn iron into steel, according to a Reuters report.
The location change will prove to be a massive logistics undertaking. Equipment will be transported from a shuttered plant in Aksu in far northwest China, 2,480 miles from Phnom Penh, a senior Baowu manager involved with the plan told Reuters.
“This equipment may be seen as outdated in China, but it is still quite advanced in Cambodia,” said the manager.
Construction investment in the real estate sector has reached over $1.8 billion in the first quarter, a dramatic increase from the previous period where investment and project approvals by the government seemed to signal a slowing trend.
Cambodia imports most of its steel from Vietnam for major infrastructure projects including ports, freeways and residential and commercial properties. According to the General Department of Vietnam Customs, the Vietnamese industry exports $713 million worth of steel annually to the Kingdom.