Chinese steelmaker Shandong Iron and Steel Group has formally started construction of its massive Rizhao Steel Base project.

The group received approval for the project from China's National Development and Reform Commission in April.

Covering an area of 173.8 hectares, the base is located in Lanshan Industrial Park in Rizhao of Shandong province. It has a total investment of 56.75 billion yuan ($9.24 billion).

Taking environmental protection into consideration, Shandong Iron and Steel plans to spend a total of 6.47 billion yuan improving sewage treatment rates during the production process.

When completed, the base is expected to produce 8.1 million metrics tons of pig iron, 8.5 million mt of crude steel and 7.9 million mt of finished steel annually.

By Wang Qian