(Yicai Global) Dec. 20 -- China's Hebei Luanhe Industrial Group Co. (HLI) plans to build a steel deep-processing industry cluster zone with a total investment of USD5 billion in Russia's Primorsky Krai, an administrative part of Russia's Far Eastern Federal District, and may start the project in a year's time, Russian news agency Sputnik quoted Yao Xiaodong, chairman of the company, as saying.

HLI plans to build a USD500 million steel production base with an annual capacity of 1 million tons in the first phase of the project and raise its annual capacity to 5 million tons and 10 million tons, respectively, in the second and third phases.

"The project will create 30,000 to 50,000 jobs. Our strategic goal is to build a USD5 billion industry cluster zone that includes ports, warehousing and manufacturing facilities. The project will help promote both the Belt and Road Initiative and the Vladivostok Free Port project," Yao said at the China Investor Day held in Vladivostok yesterday.

"Russia's Far East region has the resources needed to implement the project -- an ice-free port. This will help us sell products to the Southeast Asian and Indian markets," said Yao. HLI has already signed agreements with other companies on joint construction, he added.

"We are selecting a site for the project," Yao said. "We will visit the Zarubino port tomorrow. We will kick-start the first phase of the project in one year once we pick up a location. An ice-free port is the key factor."