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Baosteel may relocate main Shanghai plant
By Hu Xiaocen |
May 8, 2012, Tuesday
|
Online Edition
Online Edition
BAOSTEEL Group Corp, the parent of China's biggest listed steelmaker, may move its main factory out of Shanghai as part of its plan to adjust production capacity and structure, Chairman Xu Lejiang said today at a conference in Beijing.
"There's no doubt the steel industry is a huge emitter of carbon dioxide," Xu said. "We are facing triple pressure from the government, the society and ourselves for meeting environmental protection standards. Moving may be our major task in the next few years."
Shougang Corp, the only Beijing-based steelmaker, moved its main factory to Hebei Province in 2008 as the government implemented energy conservation and pollution reduction measures ahead of the Olympics.
"Shougang's today is our tomorrow," Xu said. "We will take proactive actions in crossing the threshold. In the next 10 years, production in Shanghai will fall by three million tons. The lost capacity will be supplemented by other factories."
According to an industry insider, Baosteel received government approval earlier this month for a 10 million-ton plant in Zhanjiang, a port city in Guangdong Province, without official papers.
The steelmaker failed to get approval from the National Development and Reform Commission back in 2008 for the plant due to industry curbs on overcapacity.
Chinese steelmakers posted combined losses of more than 1 billion yuan (US$158.2 million) in the first quarter due to slack demand on weakening exports and government curbs on the housing sector, the China Iron and Steel Association said last month.
Meanwhile, Wuhan Iron and Steel (Group) Corp, also received approval for its 10 million-ton plant in Fang Cheng Gang, a port city in the Guangxi Zhuang Autonomous Region that is next to Guangdong Province. Market watchers are concerned the neighboring steelmaking bases may lead to excessive competition.
"There's no doubt the steel industry is a huge emitter of carbon dioxide," Xu said. "We are facing triple pressure from the government, the society and ourselves for meeting environmental protection standards. Moving may be our major task in the next few years."
Shougang Corp, the only Beijing-based steelmaker, moved its main factory to Hebei Province in 2008 as the government implemented energy conservation and pollution reduction measures ahead of the Olympics.
"Shougang's today is our tomorrow," Xu said. "We will take proactive actions in crossing the threshold. In the next 10 years, production in Shanghai will fall by three million tons. The lost capacity will be supplemented by other factories."
According to an industry insider, Baosteel received government approval earlier this month for a 10 million-ton plant in Zhanjiang, a port city in Guangdong Province, without official papers.
The steelmaker failed to get approval from the National Development and Reform Commission back in 2008 for the plant due to industry curbs on overcapacity.
Chinese steelmakers posted combined losses of more than 1 billion yuan (US$158.2 million) in the first quarter due to slack demand on weakening exports and government curbs on the housing sector, the China Iron and Steel Association said last month.
Meanwhile, Wuhan Iron and Steel (Group) Corp, also received approval for its 10 million-ton plant in Fang Cheng Gang, a port city in the Guangxi Zhuang Autonomous Region that is next to Guangdong Province. Market watchers are concerned the neighboring steelmaking bases may lead to excessive competition.
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