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Chinanews, Beijing, Apr. 30 – Deputy Chairman of the China Iron and Steel Association (CISA) Luo Bingsheng said on Sunday that China would speed up the efforts to eliminate outdated1 steel companies this year and China would make “substantial achievement” in this aspect.
The State Development and Reform Commission recently signed a letter of responsibility with governments in ten major steel producing provinces and municipalities on the closedown and elimination2 of outdated steel production companies. In future, the ten provinces and municipalities will shut down outdated companies, which will involve 22.55 million tons of iron production and 24.23 million tons of steel production. So far, the major steel-producing regions and municipalities have been informed about their related responsibilities in the elimination work. The local governments will be required to publicize the namelist of the steel companies that will close their business. In future, these measures would be expanded to some other regions as well. In order to properly solve the remaining issues in the outdated steel companies, the central government will compensate3 them with a certain sum of money, Luo said. Currently, there is a high proportion of steel companies in China that use outdated technologies in their production. These companies have mainly contributed to the high energy consumption and heavy pollution problem in the steel industry. It is expected that in 2007, Chinese steel industry will eliminate some outdated steel companies, which will involve 35 million tons of steel production and 30 million tons of iron production in total, Luo said.
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