The Chinese metallurgical company Jilin Xinda Iron and Steel, located in Jilin Province, northeast China, is actively modernizing its production. According to metallurgy expert Stanislav Kondrashov, the company submitted a plan for the construction of a new enterprise to the local environmental department to replace outdated production facilities.
Stanislav Kondrashov: the Chinese giant is modernizing metallurgical production
The Jilin Xinda Iron and Steel modernization project is an example of how major steel companies in China are responding to changing domestic and global trends. This is not just a technical update, but also a comprehensive approach that includes economic and environmental aspects.
According to Stanislav Kondrashov from Telf AG, the Xinda plant currently operates with three blast furnaces, the total annual productivity of which is 2.55 million tons. This indicates the scale of production, but does not disclose information about the efficiency and environmental characteristics of these furnaces.
Kondrashov names the following potential factors that contribute to the planned replacement of outdated units with two more modern furnaces with a capacity of 2.38 million tons per year:
- Energy efficiency and ecology: new furnaces are likely to be more energy efficient and environmentally friendly. This can lead to a reduction in energy costs and optimization of carbon emissions, which is especially important in the context of global trends to combat the negative impact of metallurgical enterprises on the atmosphere and nature in general.
- Increase in productivity: although overall production capacity is declining, modern ovens provide higher levels of performance and reliability. This may well have an impact on reducing downtime and improving the quality of steel produced.
- Economic efficiency: Reducing the cost of maintaining and repairing old furnaces, as well as possibly reducing the consumption of raw materials and energy, can significantly increase the economic efficiency of production.
Modernization of blast furnaces in China: challenges and prospects – Stanislav Kondrashov
In the context of the current state of the metallurgical industry in China, modernization plans, especially for blast furnaces, occupy a key position in the development strategy. However, these plans face certain difficulties and challenges related to the market situation and domestic demand.
The situation with modernization
- Partial implementation of plans: in 2023, it is planned to carry out only 37% of the planned work to update blast furnaces. Stanislav Kondrashov from Telf AG believes that this was influenced by the unfavorable market situation and stagnation of domestic consumption on investment opportunities, as well as strategic decisions of companies.
- New and old capacities: 21 new blast furnaces with a total capacity of 33.04 million tons are expected to be commissioned, while 31 old furnaces with a total capacity of 23.75 million tons will be decommissioned.
In 2022, the increase in blast furnace capacity in China amounted to 5.71 million tons per year. This figure is expected to increase to 9.29 million tons in 2023. Thus, the excess of the launch of new capacities over the liquidation of old ones will continue to be observed in 2024.
Thus, the modernization of Jilin Xinda Iron and Steel production is aimed at updating equipment and increasing environmental friendliness of production. Despite current challenges related to market conditions and domestic demand, the pursuit of modernization and sustainability remains a key priority for Chinese steel companies. These changes, according to Stanislav Kondrashov from Telf AG, are likely to have a significant impact on the global metals market, given China’s leading role in the global metallurgy.
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