With construction of the nine main parts of its steel complex proceeding smoothly, Baosteel Group's new project in Zhanjiang is well on track to start operating in September.

About half of the more than 40 billion yuan ($6.46 billion) investment has been utilized since construction of the project, located on Donghai Island, China's fifth-largest island, began in May 2013, said Zhanjiang Mayor Wang Zhongbing.

The complex is designed to have an annual capacity of 8.75 million metric tons of steel in its first phase.

The project, funded by China's leading steelmaker, promises a historic leap forward of the city's industrial sector to turn Zhanjiang from an agriculture-heavy city to an industrially strong player, Wang said.

A result of phasing out obsolete steelmaking capacity in Guangdong province, the project is set to become an efficient thin sheet and carbon steel production base.

It is expected to lift the equipment, automobile, home appliance and shipbuilding industries, as well as industries that support those, bringing revolutionary changes to the economic level and structure of the city.

The government will work to extend the industrial chain based on the project and plan other projects in nearby counties to promote their economies.

The steel complex will create more jobs and entrepreneurial opportunities and help cultivate technological and managerial skills. More than 18,000 people are currently working on site for the project.

On the environmental side, Wang said, "I trust that Baosteel has the capital, technology and ability to make the environmental protection of the Zhanjiang steel project the best."

The investment in energy-saving and environmental protection makes up 16 percent of the total, with 116 well-established and reliable environmental technologies applied.

Baosteel has planned the project to have the lowest emissions possible and the highest efficiency of resource utilization.

It also started a greening project on the site earlier this month, with vegetation to cover 490 hectares of the complex.

The first phase of the greening, costing 79.83 million yuan, is scheduled to be completed by the end of this year.

The city government aims to turn the Baosteel project and a giant petrochemical project only 500 meters away into a circular economy park to maximize recycling and environmental protection results.

The city government and operators of both projects have set up a committee for that purpose.

liwenfang@chinadaily.com.cn