China's Hebei orders steel mills to relocate in anti-smog drive

BEIJING, Sept 11 (Reuters) - 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.
Here are more details of the plan:

Langfang, Zhangjiacou and Shijiazhuang have combined output of 7
million tonnes per year (tpy) of steel and 5.8 million tpy of iron.
HBIS's Tanggang, Chenggang and Hangang have combined capacity of
23.16 million tonnes of steelmaking capacity and 24.6 million tonnes of
ironmaking capacity per annum.

City Company and action Capacity
Not available
Langfang All mills must shut
and leave Hebei

Zhangjiacou All mills must shut Not available
(except for HBIS
Xuangang)
New factory will have 7.32 mln tpy
HBIS-Xuangang must of ironmaking and 7.47 mln tpy of
move to industrial steelmaking capacity, down 37
park and absorb 3 percent and 17 percent
smaller firms respectively for combined 4
companies now
Shijiazhuang Jingye Steel must Current capacity: 12 mln typ
leave Hebei (steel), 11 mln tpy (iron)

HBIS-Shigang must Current capacity: 2.02 mln
leave city and set up tpy(iron), 2.2 mln tpy (steel)
in industrial park

Tangshan HBIS-Tanggang must Not available
move to industrial
park or leave the
province
Jianlong Steel must Current capacity: 1.5 mln tpy
move to industrial (iron),1.56 mln tpy (steel)
park or leave the
province

Xinhua Metallurgy New factory will have capacity of
will absorb Guofeng 7.9 mln tpy of steel, compared
Steel and 4 other with combined 9.9 mln for existing
mills and rebuild 6 companies
factory at Fengnang

Chengde HBIS-Chenggang must Not available
move to park or leave
Shengfeng Steel must Current capacity: 2.53 mln
move to park or leave tpy(steel), 3.06 mln tpy (iron)
Hebei
Xingtai Xingtai Steel and Current combined capacity: 4.41
Longhai Steel must mln tpy (steel), 4.88 mln tpy
move to park or leave (iron)

Handan HBIS-Hangang must Not available
move to park or leave
WenAn Steel and Current combined capacity: 4.91
Xinjin Steel must mln tpy (steel), 4.4 mln tpy
move to park or leave (iron)
Jinan Steel must Current capacity: 2.05 mln tpy
leave city (steel), 2.12 mln tpy (iron)

Yongyang Special New factory will have capacity of
Steel must leave the 1.06 mln tpy for ironmaking and
city and swallow 2 1.2 mln tpy for steelmaking,
other mills. compared with combined 1.1 mln
iron and 1.35 mln steel for
existing 3 companies
Taihang Steel 2.4 mln tpy (steel), 2.12 mln tpy
(iron)

Qinhuangdao Shouqin Steel, New factory will have capacity of
division of Shougang 4.6 mln tpy of iron capacity and
Group, must move to 5.3 mln tpy of steel capacity
industrial park in
Hebei and absorb 8
existing firms


(Reporting by Muyu Xu and Josephine Mason; Editing by Alex Richardson)


First Published: 2018-09-11 01:00:09
Updated 2018-09-11 01:00:43


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