Dazhou signed a contract with Fangda to plan to build a 10 million tons modern steel industry base!

In the afternoon of June 3, the People’s Government of Dazhou City and Liaoning Fangda Group signed the “Strategic Cooperation Agreement” in Dazhou, and the Jiangxi West Iron and Steel Group signed the “Daigang Group Relocation and Transformation Development Cooperation Agreement.”
On the basis of comprehensive investigation, Dazhou City and Fangda Group jointly determined the key content of strategic investment cooperation. Both parties will accelerate the implementation of Dagang’s off-site relocation and transformation development project, phased construction, and realize the annual production capacity of 10 million tons of high-quality steel. As an important modern steel industry base in Chongqing, the company ranks in the leading position in the southwest region in terms of technological level, ecological environment protection, industrial driving and comprehensive competitiveness. On this basis, the two sides will also cooperate in advanced materials, biomedicine, equipment manufacturing, industry-city integration and other fields.
Dagang Group was built in 1958. In 2004, it was transformed from a wholly state-owned enterprise to a private joint-stock company. It has an annual output of 3 million tons of steel, 3.5 million tons of steel, 2.1 million tons of machine coke, 200,000 tons of coal chemical products, and 500,000 tons of methanol. The comprehensive production capacity of dimethyl ether of 200,000 tons is the only large-scale iron and steel complex in northeastern Sichuan and has strong competitiveness in the southwest. From 2014 to 2016, Dazhou Iron & Steel suffered huge losses for three consecutive years and fell into an insolvency dilemma. On the other hand, with the acceleration of the urbanization process of Dazhou, the factory of Dagang Group, which was originally located on the outskirts of the city, is already in the main urban area and has become a de facto “urban steel plant”.
In 2017, the Central Environmental Protection Inspector and the Sichuan Provincial Party Committee and Provincial Government requested Dagang to close the original site and relocate within a limited time.
Subsequently, Dazhou organized a special class for the introduction of strategic investors to seek strategic investors nationwide. In April 2019, the Dazhou Municipal Government and Liaoning Fangda Group signed the “Minutes of Talks” to jointly promote the judicial reorganization and relocation of Dagang Group.

Liaoning Fangda Group is a cross-industry, cross-regional, diversified, and internationally competitive large-scale enterprise group. It is in the leading position in the three major fields of domestic steel, carbon, and medicine, and its affiliated companies are distributed in more than 20 nationwide. Provinces, municipalities and autonomous regions, with more than 60,000 employees, have achieved “double-super-billion” in sales revenue and asset scale, with profits and taxes paid for more than 10 billion yuan for consecutive years.
On May 25 this year, the Dazhou Intermediate People’s Court ruled to approve the “Reorganization Plan of Sichuan Dazhou Iron and Steel Group Co., Ltd. and 24 Affiliated Companies”, with Jiangxi West Iron and Steel Group, a subsidiary of Liaoning Fangda Group Industrial Co., Ltd., as a strategy Investors became the largest shareholder of Dazhou Iron and Steel.
At the signing ceremony, Fang Wei, chairman of the board of directors of Liaoning Fangda Group, said that Dazhou is the east gate of Sichuan’s opening up and has a very good business environment. Leaders at all levels are open and practical, hoping to take this opportunity to seek benefits for employees of Dagang. Promote Dagang to create greater glories, and make greater contributions to Dazhou’s construction of a comprehensive transportation hub in the east from Sichuan to the north and a regional central city at the junction of Sichuan, Chongqing and Shaanxi, and striving to create a deputy economic center in Sichuan Province.
The person in charge of the Dazhou Municipal Party Committee said that he will unswervingly support Fangda Group’s strategic reorganization of Dagang, promote the relocation and transformation of Dagang Group, and deepen multi-field cooperation with Fangda Group. “I hope that Fangda Group will sign this contract As a new starting point, attract more upstream and downstream enterprises to reach the state, and promote the development of related industries to extend, supplement and strengthen the chain.”