SteelOrbis Shanghai
Sources report that Hebei government is now considering the restructuring of iron and steel companies in the province.
Accordingly, the number of iron and steel enterprises in Hebei Province will be reduced from the current 202 to 40 by the end of 2010. The output of the top ten iron and steel enterprises in Hebei Province is planned to account for more than 75 percent of the total output in the province then.
Currently
pig iron, crude steel and finished steel output in Hebei are 67.66 million metric tons, 73.86 million metric tons and 64.65 million metric tons respectively. The province accounts for the largest share in
China's total output with 20 percent. However, the average
production scale per mill is only at around 800,000 metric tons. The
production scale of Tangshan Steel is 10 million metric tons, and that of Handan Steel is 6 million metric tons, while other steel mills have small
production capacities, and they do not comply with the requirements of the iron and steel industry.
According to the plan, some steel mills will consolidate while the those enterprises which do not meet the requirements will be shut down. The province aims to set two large iron and steel groups; one with over 30 million metric tons and the other with over 10 million metric tons per annum capacity by the end of 2010.