China's Ministry of Industry and Information Technology (MIIT) has recently published a notice, aimed at pushing forward the reorganization in the steel industry.
According to "Notice to implement ‘Advice to further promote energy saving and emission reduction, as well as steel industry structure adjustment'" published by MIIT on August 11, provincial authorities are required to investigate the background of steelmakers, to make reorganization plans, and report to MIIT before the end of 2010 for approval.
Commenting on the issue, an insider from MIIT said "Facing the pressure to save energy, reduce emission, and eliminate dated capacity, a lot of small companies are at the edge of closing down. Reorganization and mergers may allow these companies to meet the requirements."
Market insiders say the new deadline may give the companies who are unable to meet the requirements up to now and who started construction before getting approval, a chance to get legal identity through mergers and reorganization.