Construction work on a large iron and steel project and a joint-venture petrochemical complex in Zhanjiang, a coastal city of Guangdong province, is well underway, Mayor Wang Zhongbing said.

The iron and steel project, being built by Shanghai Baosteel Group Corp, the country's largest steel manufacturer, is scheduled to start trial operations in October next year.

The project, which has so far cost 5.2 billion yuan ($849.9 million), is designed to produce 10 million metric tons of steel annually.

Construction of major facilities for coking, sintering, blast furnace operations, and cold and hot rolling will be finished this year, according to Wang.

"The project will help upgrade the country's iron and steel industry," said Wang, adding that the project will start full operations by the end of 2015.

The petrochemical complex, a joint venture of China Petroleum and Chemical Corp (Sinopec) and Kuwait Petroleum Corp, is scheduled to start production by 2017, according to Wang.

"Preparatory work, including development of underground pipelines and roads and purchasing of processing facilities will be finished this year," Wang said.

The complex is designed to process 15 million metric tons of crude oil and produce 1 million tons of ethylene annually.

Both projects are on Donghai Island, where construction of a port has also been completed, according to Wang.

"The two projects, along with a number of other big industrial projects, will greatly help the city's economic development," Wang told China Daily during the annual session of the National People's Congress in Beijing on Wednesday.

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