Stainless steel foils produced at Taiyuan Iron and Steel Group. [Photo by Wang Xuhong for China Daily]

Shanxi's special steel industry is earning attention from investors and is expected to form an extended industrial chain, according to results of a recent trade fair.

The fair for the industry's investment promotion was held on March 19 in Taiyuan. Taiyuan Iron and Steel Group, a leading steelmaker in Shanxi, hosted the event.

Special steel refers to varieties with distinctive physical and chemical properties and special applications, which are different from common steel products.

According to Yan Lin, deputy chief of the Shanxi Department of Industry and Information Technology, Shanxi has formed a complete chain for the special steel industry, with 27 enterprises engaged in the supply of raw materials, steelmaking and equipment manufacturing using special steel products.

Data from the department show that the industry in Shanxi reported an output value of 80 billion yuan ($11.62 billion) in 2022. Officials predicted that the figure could reach 120 billion yuan in 2025.

Taiyuan Iron and Steel, the leader of the industrial chain, left a deep impression on visitors by displaying its cutting-edge products at the show.

On exhibition were the company's products like super-thin broadsheet stainless steel foil, and products with special applications in nuclear power, railway and automobile industries.

The most eye-catching was the super-thin broadsheet stainless steel foil, which is also called hand-torn steel by the general public, because, with a thickness of less than 0.02 millimeters, the product can be easily torn apart by hand.

With such a thickness, the product is used to take the place of aluminum foil in similar industrial applications, like the fields of aerospace, electronics, petrochemicals and automobiles, according to Liao Xi, a researcher at the company.

He said Taiyuan Iron and Steel is among the very few companies in the world capable of producing soft steel foil of 0.02 mm or thinner.

The company is sharing its resources with upstream and downstream enterprises, especially in the field of research and development.

Yan of SDIIT said Taiyuan Iron and Steel has played an important role in expanding the special steel chain and that its growth can help to attract more enterprises to join the industry.

One example is that Xinyuanhong, a company based in Shenzhen, has agreed to expand its electrical motor production facility in Taiyuan. This is a downstream enterprise that uses high-strength steel made by manufacturers like Taiyuan Iron and Steel to produce wearable motor components.

In a development zone in the city of Jiexiu, a special steel industrial park is now under construction. Local officials predicted this park could develop into a huge establishment with output worth 100 billion yuan and more investment to come.

Zhang Yi contributed to this story.