September 10, 2018 / 11:19 PM / 2 months ago

Factbox - China's Hebei orders steel mills to relocate in anti-smog drive

A crane drives past the Hebei Zongheng Iron and Steel plant that is under construction at the Tangshan Fengnan Economic Development Zone, Hebei province, China, August 22, 2018. REUTERS/Thomas Peter

BEIJING (Reuters) - Hebei, China’s top steelmaking province, has ordered mills in almost a dozen of its smoggiest cities to shut, move to one of four industrial parks on the coast, or relocate by 2020.

Mills affected include some owned by HBIS Group, the world’s fourth largest steelmaker.

Among the measures, six larger producers must absorb capacity from 17 smaller rivals and build new factories at one of the designated complexes. The industrial parks are in Fengnan, Caofeidian, Canzhou and Jingtang on Bohai Bay.

Nine other mills located in city centres, including Hebei Xinjin, with combined capacity of 34.9 million tonnes per year, will have to shut and relocate to the industrial parks or leave the province altogether.

Some - including the biggest mill in provincial capital Shijiazhuang, Hebei Jingye Steel Group - were not given the option of moving to designated zones and have been told they must quit the province.

The steps will cut the number of mills in the province to 70 from 87, and are part of central government’s push shut smaller inefficient plants and create mega-mills.

Here are more details of the plan:

Langfang, Zhangjiacou and Shijiazhuang have combined output of 7 million tonnes per year (tpy) of steel and 5.8 million tpy of iron.

HBIS’s Tanggang, Chenggang and Hangang have combined capacity of 23.16 million tonnes of steelmaking capacity and 24.6 million tonnes of ironmaking capacity per annum.

Reporting by Muyu Xu and Josephine Mason; Editing by Alex Richardson

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