It is reported that Ms Li Miaojuan director of Guangdong Development & Reform Commission expressed her supportive altitude on Baosteel Zhanjiang Project on November 27th to CBN.

She said that it is rational and in line with the state industrial revitalization plan that Baosteel is to locate the 10 million tonnes per year steel project in Zhanjiang. Thus, local Government should aid to pick up the project according to the designed process.

Ms Li said in the existed steel capacity, 30% of it belongs to advanced capacity, 30% to normal capacity and the 40% to backward capacity. And the overcapacity can be eased off through upgrading the steelmaking facilities or promoting large and high tech projects while shutting outdated mills.

She said “Guangdong will wipe off 12 million tonnes per year obsolete capacity in order to win the approval of Zhanjiang steel project, since total capacity hasn’t increased. She added that Guangdong permitted Baosteel to regroup Guangzhou Steel and Shaoguan Steel also reflecting the state industrial policy.”

As per report, the province already closed 2.4 million tonnes per year capacity in January to September this year and accumulatively eliminated 9.9 million tonnes per year outdated steelmaking facilities from the state of the 11th “Five Year Plan” to now.

(Sourced from MySteel.net)
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