Three-phase plan to restructure Hebei’s steel industry
Hebei Province boasts 202 iron and steel enterprises and its steel output has ranked first in
China for five consecutive years.
In 2004, Hebei accounted for 20.71 percent of
China's total steel output with 56.41 million tons. It is anticipated that its 2005 output will be 60 million tons. Among the mills operating in Hebei, only Tangshan Steel and Handan Steel have output greater than 6 million tons. There are nearly 40 other producers in the province with output of at least 500'000 tons.
In a move to restructure Hebei's highly scattered steel industry, a three-phase plan has reportedly been drawn up. In the first phase, Handan Steel, Xingtai Steel, Shigang (Shi Jiazhuang), Tangshan Steel, Chengde Steel, and Xuanhua Steel will classified as two iron and steel groups, one operating in southern Hebei and the other in northern Hebei.
In southern Hebei, Handan Steel Group will be comprised of Handan Steel, Xingtai Steel, Shigang (Shi Jiazhuang) and other iron and steel enterprises in neighboring regions. In northern Hebei, Tangshan Steel Group will include Tangshan Steel, Chengde Steel, Xuanhua Steel and other enterprises in surrounding areas.
In the second phase, the two largest state-owned enterprises in Hebei, Tangshan Steel and Handan Steel, will be merged to form Hebei Iron and Steel Group.
The final stage will consist of encouraging and guiding private enterprises to cooperate with Hebei Iron and Steel Group.