China's most polluted province lags behind on plan to cut steel capacity
24 August 2016
China's northern Hebei, which accounts for a quarter of China's steel output, is lagging far behind in its plan to reduce steel and iron producing capacity, data released by the provincial state planner showed on Wednesday.
Seven major iron and steel producers have cut their capacity by 3.18 million tonnes in the first seven months of the year by turning off six plants, but this accounts for only 10 percent of the target for capacity cuts set by the government.
The disappointing data from the Hebei Development and Reform Commission showed the difficulties that China faces trying to reduce excess capacity across several industrial sectors.
It comes just a month after state media said the heavily polluted province, which surrounds China's capital Beijing, pledged to close more than 31 million tonnes of combined iron and steel production capacity in 2016.
Officials from nation's state planner said on Aug. 19 that the government had allotted 30.7 billion yuan ($4.62 billion) to implement the capacity cuts in steel and coal, but cuts across the world's top steel producing nation are also behind national targets.
The Hebei authorities did not give further details on the plan, saying the data was published as required by the central government.
Source : reuters.com