BEIJING Feb 18 China will restrict steel
production, force mills to move to coastal regions and ditch
inefficient equipment under a draft proposal being discussed by
the government, an industry source said on Wednesday.
The draft plan would limit China's crude steel output from
2011 onwards to 500 million tonnes a year. In 2008, China's crude
steel production was 500.49 million tonnes.
It would require 40 percent of steelmaking capacity to be
located in coastal areas, up from 35 percent now, but the
government would put a mechanism in place to help companies
assist those losing their jobs.
The plan would also increase the minimum size of blast
furnaces from 300 to 400 cubic metres and the minimum size of
converters from 20 to 30 tonnes.
The government is expected to finalise the package of
measures by the end of this month, the source said.