China's Jiangsu province to consolidate steel mill locations in efficiency drive
China’s second-largest steelmaking province, Jiangsu, will require steel mills to move to two new areas on the coast in the next few years, according to a provincial government document, to reduce air pollution and to make the industry more efficient.
After years of getting rid of outdated excess capacity, the latest measures are the next front in the government’s long-term effort to upgrade and streamline its smokestack industries.
Jiangsu province, which accounted for 12.5 percent of China’s total crude steel output last year, plans to create two steelmaking hubs, focussing on high-quality steel production, and relocate steel mills through merger and capacity trading, the document said.
The plan was distributed on Tuesday by the Jiangsu government and reviewed by Reuters on Wednesday. The provincial government declined to comment.
