Hebei Orders Steel Mills To Relocate In Anti Smog Drive

- Sep 13, 2018-

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

Previous:China Lays Out Timetable For SOE Deleveraging Next:US Steel Revises Offer To More Than 16,000 Steelworkers