Hebei Puts Armlock on Eight Steel Projects Failing to Reduce Capacity, Orders Correction
Yicai Global
/SOURCE : Yicai
Hebei Puts Armlock on Eight Steel Projects Failing to Reduce Capacity, Orders Correction

(Yicai Global) Jan. 26 -- Shougang Jingtang Steel Phase Two, Step One and another eight steel projects have been suspended and ordered to take measures to comply with a rule requiring new projects to swap capacity by phasing out obsolete or excess capacity at least 1.25 times that of such projects.

The agency in charge of development and reform (NDRC) in central China's Hebei province issued the stop and act order in a sign of China's determination to curb noncompliant new coal and steel production. The seven other projects affected belong to Yongyang Special Steel Group Co., Xinxing Ductile Iron Pipes Co., Hesteel Group Tangsteel Co., Hesteel Group Shisteel Co., Tangshan Bohai Iron and Steel Co., Hebei Taihang Iron and Steel Co., and Jinan Iron and Steel Group Corp., Xinhua News Agency reported today.

The information and technology ministry (MIIT) has recommended means for correcting the eight projects. It will temporarily halt their filing procedures and bar two which are already-constructed from operation. Two under construction must immediately stop work. They must all adjust their projects based on a 1:1.25 ratio as soon as possible and standardize capacity reduction swap plans to fully implement the requirement, submit these for approval as quickly as possible, and undergo other relevant formalities.

The NDRC, MIIT and three other ministries issued a joint circular in December reiterating the phase-out for new projects built in environmentally-sensitive areas in the Beijing-Tianjin-Hebei region and the Yangtze and Pearl river deltas.

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