Construction of a 1.8-million-ton cold-rolled steel plate project kicked off in the Guangdong capital early this week.

The 6.35-billion-yuan project is backed by Guangzhou JFE Steel Plate Co Ltd, a joint venture between Guangzhou Steelworks and Japanese steel giant JFE.

Located at the mouth of the Pearl River in the city's Nansha District, the project covers an area of more than 52.68 hectares and is expected to start operation in 2010.

The project will mainly produce quality steel plates for cars, high-grade electrical appliances and the building industry. In addition to sales on the mainland market, its products will also go to Southeast Asian nations and the rest of the world.

An official from the Guangzhou Municipal Development and Reform Commission said the project has great significance for the future development of the city's steel industry.

"It will help narrow the big steel product supply gap in the prosperous Pearl River Delta region and help Guangzhou Steelworks further improve its industrial structure," the official was quoted as saying by Guangzhou Daily.

Japan's JFE has advanced technologies in steel production.

It is the largest cold-rolled steel plate project in the province, where heavy industry lags behind light industry.

Guangdong, where the electrical appliance and auto industries have seen sustained growth, is one of the mainland's major cold-rolled steel plate consumers.

(China Daily December 28, 2007)