The Hangzhou Steel and Zhenshi Group joint venture is set to launch production at its 162.9 billion RMB green nickel-chromium intelligent manufacturing base in Jiaxing. Discover how this world-first flexible smelting-rolling line will reshape stainless steel supply chains.
A landmark joint venture between Hangzhou Steel Group and Zhenshi Holding Group is entering its final stretch before production. The Green High-End Nickel-Chromium New Material Intelligent Manufacturing Project in Jiaxing, Zhejiang Province, represents a strategic pivot toward high-value stainless steel products that China has long imported.
A 2.5 Million-Tonne Stainless Steel Powerhouse
With a total investment of approximately 16.29 billion RMB (162.9亿元), the project will build a steelmaking system with an annual capacity of 2.5125 million tonnes of billet, supported by full-process hot rolling, plate, annealing, pickling, and cold rolling lines-6. The implementation entity, Dongfang Special Steel, is a mixed-ownership enterprise controlled by Zhenshi Group (50.9999%) with Hangzhou Steel Group holding 49.0001%-12. A second phase adds 1 million tonnes of cold-rolled white coil and 35,200 tonnes of special smelting capacity with an additional 3.82 billion RMB investment-11.
World-First Flexible Smelting-Rolling Line
The project’s technical centrepiece is the world’s first stainless steel flexible smelting and rolling demonstration production line. Developed with engineering firm MCC Huatian, this integrated line can produce stainless steel from an ultra-thin 1.85 mm to 85 mm in thickness, covering the global thinnest to thickest specifications–. It combines厚板轧机 and wide-strip continuous finishing mills into a single flexible plate-coil co-production line, capable of simultaneously manufacturing 6–100 mm medium plates and 1.85–20 mm strip–. The reheating furnace integrates full-oxygen combustion technology—a first for hot rolling lines in China–.
Breaking the High-End Import Bottleneck
The product portfolio targets critical materials currently dominated by imports: LNG shipbuilding Invar alloy, nuclear power steel, and super austenitic stainless steel–. Once operational, the project aims to achieve 20% import substitution and 50% high-end product breakthroughs, directly addressing “bottleneck” technologies in high-performance nickel-chromium materials-6. This directly serves China’s shipbuilding, nuclear energy, and new energy sectors.
Green Manufacturing Benchmark
The project is designed as the industry’s first 100% green electricity-powered zero-carbon stainless steel intelligent manufacturing factory–. Carbon intensity is projected at just 0.876 tonnes of CO₂ per tonne of steel, saving 68,000 tonnes of standard coal and reducing CO₂ emissions by 180,000 tonnes annually compared to conventional processes-1.
Production Timeline and Economic Impact
As of April 2026, main equipment installation has exceeded 90%, with the first steelmaking line targeted for ignition in the second quarter of 2026–. Full completion is expected by year-end 2026-1. Once fully operational, the project is projected to generate annual sales revenue exceeding 40 billion RMB and annual taxes and profits of over 1 billion RMB, directly creating more than 2,000 jobs-1.
For the global stainless steel industry, this project signals a significant shift: China is moving decisively from volume leader to technology leader in high-end nickel-chromium materials, with green manufacturing as its competitive edge.
