China to address unauthorized steel projects
Post Date: 22 Jun 2010 Viewed: 503
Projects across the country, according to the latest rules released by the State Council. The new policy not only inherited previous rhetoric about curbing overcapacity in the steel industry, known as an “industrial backbone” sector, but also required the National Development and Reform Commission to review all the steel projects that have been established since 2005, the Ministry of Land and Resources to examine any violation of land using regulations, and the Ministry of Environmental Protection to expose environmental offenders related to these projects. According to a vice minister of Industry and Information Technology, there are up to 300 million tons of unauthorized steel capacity in China, accounting for half of the country's total output. The government reiterated the previous statements that will no longer approve any steel expansion project by the end of 2011, but with exceptions to Baosteel's Zhanjiang Steel Project in Guangdong and Wisco Fangchenggang Project in Guangxi. While endeavoring to check the overall production, the new policy explicitly encouraged the development of a handful of well-profiled producers. China will have to foster three to five internationally competitive steelmakers and half dozen super large producers by 2015, when the top ten steel giants will produce more than 60 percent of the country's total output, up from 44 percent in 2009.