Steel industry restructuring plan for Shanxi may be modified

Tuesday, 25 May 2010 17:21:45 (GMT+2)

According to the Shanxi Province Economic and Information Committee, a modified ‘Shanxi Steel Industry Restructuring Plan' has been passed on for approval to the government of Shanxi Province in China.

If the plan in question is approved, its recommendations for the restructuring of the steel industry in Shanxi are to be implemented in the summer of the current year.

According to an insider from the Shanxi Province Economic and Information Committee, in line with the modified plan major restructuring of the steel industry in the province will revolve around local producers Taiyuan Iron and Steel Group and Shougang Group. The official in question stated, "Shanxi Province has a steel output capacity of 60 million mt. If the plan is approved, 45 million mt annual capacity will be restructured around Taiyuan Iron and Steel Group, while 15 million mt capacity will be restructured around Shougang Group." The insider stated that the precise figures have not yet been confirmed.

Commenting on the new plan, Zhu Fengliang, deputy secretary of the Shanxi Iron and Steel Industry Association, stated, "This means that, after restructuring, the scattered steel production capacities will be joined together, and so the steel industry in Shanxi will be more competitive."

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