Xinjiang Bayi Steel, a subsidiary production unit of Baosteel, has received approval from local officials for the building of Baicheng Steel and Yili Steel bases, which will add five million tons to current capacity when they become operational in 2012. Baosteel has agreed to spend 30 billion yuan expanding the production scale of its Xinjiang headquarters from seven million tons to 10 million tons a year in the next five years. As a result, total facility capacity at Bayi Steel would be 15 million tons by 2015.