Shiu Wing Steel, Hong Kong’s first and only steel-rolling mill, plans to produce recycled steel to meet growing demand created by China’s green ambitions in Hong Kong and other cities in the Greater Bay Area (GBA) development zone, according to a report by South China Morning Post.

The 65-year-old steelmaker plans to build an electric-arc furnace at its plant in Tuen Mun to produce 700kt of recycled steel a year by 2025 and expand its presence in the GBA, Dario Pong, Shiu Wing’s executive director, said in an interview.

The construction steel market in the development zone, which comprises Hong Kong, Macau and nine mainland Chinese cities in Guangzhou province, is estimated at 20 to 25Mt a year, a significantly higher amount compared to Hong Kong’s market of 1.2-1.5Mt a year.

“We hope to make the decision [to build the furnace] next year. We need about two years to build and then need about 10 years to recover that investment.”

Dario Pong, Shiu Wing’s executive director

“We hope to make the decision [to build the furnace] next year. We need about two years to build and then need about 10 years to recover that investment,” Pong said.

Shiu Wing’s investment plan follows China’s decarbonization goals set out at the 2020 United Nations General Assembly, where it pledged to peak carbon emissions before 2030 and reach carbon neutrality by 2060.

“We want to restart our [green] steelmaking business because we are seeing a new concept emerge – People are talking about green steel now,” Pong added.