Guangdong Heyuan closes 3 million tonnes obsolete steel capacity

Tuesday, 11 Aug 2009

It is reported that South China's Guangdong Heyuan has closed 3.07 million tonnes of inefficient iron and steel capacity since last year.

Of which, 2.26 million tonnes of steel capacity and 30,000 tonnes of iron capacity were closed in last year and 0.79 million tonnes weeded out in the first seven months of this year.

1. Completes 90% target

Local 19 steel mills have finished 84.8% of the required capacity closure target signed with local development and reform committee and environmental bureau last year to wash out 3.62 million tonnes of obsolete steel capacity and 30,000 tonnes of iron capacity in this and last year.

2. Conduct Differential Power Rates

There is still 0.55 million tonnes of obsolete capacity needed to be closed this year, of which, 0.37 million tonnes should already be removed by the end of last year.

And according to local official, differential power prices policy will be strictly carried out to force those inefficient facilities and mills out of the market.

(Sourced from MySteel.net)
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