China’s Tsingshan to build ‘steel city’ in Iraq

A Chinese company has won a contract to build Iraq’s first industrial city that will be dedicated mainly to steel and construction materials.

Tsingshan Holding Group will build the city on the state-owned General Steel Company site in Iraq’s southern oil centre of Basra, after it was destroyed during the US-led invasion in 2003.

Industry and minerals minister Khaled Al-Najm on Wednesday laid the ground stone for the sprawling project, which will span an area of nearly 5 sq km.

The “Green Mountain City” will host several industries, mainly steel and construction materials, most of which will be destined for the local market, the minister said in statements published by the Ministry on Facebook.

“This project represents a shift towards integrated, sustainable manufacturing zones that will strengthen Iraq’s economic base, expand production capacity and provide specialized employment opportunities,” he added.

Officials said early this year that the steel city project is one of four industrial zones that will be opened in 2025 with the aim of attracting investment in petrochemicals, metals and other products as part of a post-conflict reconstruction drive.

The Industry Ministry said in late 2024 that the cabinet had agreed to award the Basra zone project to Tsingshan Group, which was among several bidders for the project.

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“This project will be dedicated to steel industries, aluminum and other metals  besides construction items and related industries,” Riad Jazim, deputy director of industrial cities at the Industry and Minerals Ministry, said in early 2025.

Officials have not made clear if Tsingshan would build the industrial city as part of a landmark oil-for-projects agreement signed by Iraq and China five years ago. The deal stipulates that Chinese companies execute projects in Iraq in exchange for crude supplies.

Under that accord, which was prompted by Iraq’s squeezed coffers, Chinese businesses have carried out scores of projects in Iraq, including the construction of 1,000 schools, most of which have been completed.