By Zhang Xiangdong (張向東)
From Economic Observer Online
May 11
Translated by Tang Xiangyang
Original article:[Chinese]
China’s steel industry is about to go through a huge program of relocation and capacity expansion, according to Li Zhongjuan, deputy director of the industrial coordination department under the National Development and Reform Commission (NDRC).
Li said, the Relocation and Readjustment Project of Steel Sector has been approved by the State Council and will be passed over to related ministries for approval.
The project says that steel makers in urban areas will be relocated according to their “specific conditions,” but Li didn’t mention where those steel companies would be moved to.
Meanwhile, a new round of construction of ore and steel bases will start as soon as the project is issued.
This means that the steel project of Bao Steel, which is located in Zhan City, Guangdong Province, and the one in Fangchenggang City, which is in Guangxi Zhuang Autonomous Region, of the Wuhan Steel Company will both be approved. Some other projects which have begun production without approval will also be given a green light.
The Relocation and Readjustment Project of Steel Sector is one of China’s 18 key projects for the 12th five-year plan. The NDRC hopes it will ensure a balanced, sustainable and harmonious development of the country’s steel industry.
Based on NDRC’s data, there are 20 steel companies located in cities directly under the central government and 39 in other urban areas. The entire capacity of the latter was 228 million ton in 2009, accounting for 39.5% of China’s total steel capacity.
Local governments are already taking advantage of the Project. Jiangxi Province plans for total capacity in Hukou County to reach tens of millions ton of steel each year; Huoqiu County in Anhui Province will probably be selected by the NDRC to be a focus of the national steel industry.
