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China's Hebei province to replace 11.48 MT old steel capacity with new one

Last month, China said it has reduced its total steel production capacity by 42.4 million tonnes

Reuters  |  Beijing 

China's Hebei province to slash 11.48 MT outdated steelmaking capacity

China's will slash 11.48 million tonnes in outdated steelmaking capacity to accommodate the expansion of a new plant, part of efforts by the country's top steel-producing region to rein in surplus production.

China, the world's biggest producer, has been shutting outdated plants but also keeping any expansion under control to help tackle a years-long glut.

Authorities closed more than 600 mills producing low-grade construction during the first half of the year, cutting capacity by about 120 million tonnes, the state-owned China Economic Daily reported earlier on Tuesday.

Last month, China said it has reduced its total production capacity by 42.4 million tonnes as of end-May, meeting 85 percent of its full-year target.

In Hebei, the combined reduction in steelmaking capacity at nine mills of more than 11 million tonnes was meant to make way for the expansion of a plant by Iron and Co, according to a document published on the Hebei government's website this week.

The expansion at Steel's plant will add new capacity of 5.1 million tonnes, it said. The entire plant, when finished, can produce 9 million tonnes of products annually.

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Hebei aims to cut total annual production capacity to less than 200 million tonnes by the end of the decade from 286 million tonnes in 2013.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 04 2017. 19:38 IST