Highlights

• Baogang Group's metallurgical unit has completed a 2-million-ton-per-year steel slag recycling facility.
• The facility converts steelmaking waste into commercially valuable materials through integrated hot-slag processing and waste-heat recovery.
• The project achieves near-zero emissions of metallurgical solid waste.
• The initiative enables full industrial utilization of recovered iron and minerals.
• The project addresses China's challenge of scaling circular-economy technologies in heavy industry.
• The development showcases China's ability to industrialize waste-to-resource technologies at scale.
• This could create competitive advantages in raw-material costs, emissions compliance, and supply chain resilience for Western steelmakers and policymakers.

A state-owned industrial unit within Baogang Group has completed a large-scale steel slag recycling project, marking a meaningful step in China’s push to convert heavy-industry waste into commercially valuable materials—and signaling a model with implications well beyond China.

According to Baogang Daily, the official publication of the state-owned group, Baogang Metallurgical Slag Company has fully completed an industrial project capable of processing 2 million tons of steel slag per year. Steel slag—traditionally a costly byproduct of steelmaking—has long been an environmental and logistical burden. This project reframes it as a recoverable resource.

What makes the project notable is not just scale, but process design. The facility integrates hot-slag roller crushing, dry processing, and waste-heat recovery, enabling the separation and recovery of iron-bearing materials while capturing residual thermal energy from freshly produced slag. Officials say this significantly improves energy efficiency and reduces environmental impact compared with conventional wet-slag treatment.

From a business perspective, the project claims to achieve near “zero emissions” of metallurgical solid waste, while enabling full industrial utilization of recovered materials—an outcome China has struggled to scale consistently across its steel sector. Baogang describes the project as a replicable technical model for other metallurgical enterprises seeking to reduce waste, recover value, and comply with tightening environmental standards.

The company now plans to shift focus from construction to capacity ramp-up and efficiency optimization, while continuing R&D in materials processing, safety systems, and environmental controls. The project aligns with China’s longer-term industrial recycling and low-carbon transition goals, including priorities outlined under the country’s upcoming 15th Five-Year Plan.

Why this matters outside China

For Western steelmakers, recyclers, and critical-materials strategists, the development highlights how China is industrializing circular-economy technologies at scale, not just piloting them. Efficient recovery of iron and mineral content from slag can lower raw-material demand, reduce emissions costs, and strengthen domestic supply resilience—advantages that could widen competitiveness gaps if not matched elsewhere.

While no immediate export or licensing plans were disclosed, the project underscores China’s growing capability (or at least the claims) to convert environmental compliance into industrial advantage, particularly in heavy industry linked to strategic supply chains.

Disclaimer: This report is based on information published by Baogang Daily, a media outlet of a state-owned enterprise. The information should be independently verified before forming business, investment, or policy conclusions.