Reuters reported that Hebei, China’s top steelmaking province, has
ordered mills in almost a dozen of its smoggiest cities to shut, move to
one of four industrial parks on the coast, or relocate by 2020. Mills
affected include some owned by HBIS Group, the world’s fourth largest
steelmaker. Among the measures, six larger producers must absorb
capacity from 17 smaller rivals and build new factories at one of the
designated complexes. The industrial parks are in Fengnan, Caofeidian,
Canzhou and Jingtang on Bohai Bay.
Nine other mills located in city centres, including Hebei Xinjin, with combined capacity of 34.9 million tonnes per year, will have to shut and relocate to the industrial parks or leave the province altogether.
Some including the biggest mill in provincial capital Shijiazhuang, Hebei Jingye Steel Group were not given the option of moving to designated zones and have been told they must quit the province.
The steps will cut the number of mills in the province to 70 from 87, and are part of central government’s push shut smaller inefficient plants and create mega-mills.
Source : Reuters