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China's steel base continues huge capacity cuts

Xinhua | Updated: 2018-01-25 17:12
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SHIJIAZHUANG - China's leading steel and iron producer Hebei province will continue with huge capacity cuts in 2018, governor Xu Qin on Thursday.

Hebei would draft a new three-year plan to continue pushing forward industrial reform in the province, Xu said when delivering a government work report at the annual session of the provincial people's congress.

Xu said the province aims to cut production capacity of steel and iron, coal, concrete and coke by 10 million, 10.6 million, 1 million and 5 million tons, respectively, this year and eliminate all zombie enterprises in the steel and iron industry.

Since 2013, Hebei has set a target to shift its energy and industry structures from coal and steel to emerging, high-end industries. From 2013 to 2017, the province overshot its five-year target and cut production capacity of steel, iron and concrete by 69.93 million, 64.42 million and 70.57 million tons, respectively.

It also reduced production of plate glass and coal consumption by more than 71.73 million weight cases and 44 million tons during the same period.

Hebei's capacity reduction is part of a national move to focus on quality and profit improvement, while cutting overcapacity in heavy industries.

China plans to eliminate 100 million to 150 million tons of crude steel capacity and 500 million tons of coal in the five years from 2016. The country completed its 2017 tasks for capacity cuts in both sectors.

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