SHANGHAI, March 28 The northeastern Chinese
province of Liaoning has promised to close more than 10 million
tonnes of low-grade steel capacity by the end of June this year
as part of its efforts to clean up the sector, the official
Liaoning Daily reported on Tuesday.
Heavy industrial Liaoning, home to struggling state steel
mills like the Anshan Group and the Benxi Iron and Steel Group,
is a key part of China's strategy to tackle price-sapping
overcapacity in the coal and steel sectors.
However, the province has struggled to find alternative
sources of growth. Its economy shrank 2.5 percent last year, the
only Chinese province to see a contraction.
The low-grade steel closures are also part of a nationwide
pledge to eliminate a type of dangerous and polluting production
capacity that accounts for about 4 percent of total output.
Liaoning also aims to shut all coal mines with annual
production capacity of less than 90,000 tonnes by the end of the
year, a move that will cut coal provincial production capacity
by 9.59 million tonnes, the report said.
Liaoning has been ordered to close 30.4 million tonnes of
coal capacity over the 2016-2020 period, Liaoning Daily
reported. It shut 44 mines last year and cut production capacity
by 13.6 million tonnes.
(Reporting by David Stanway; Editing by Joseph Radford)