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China shuts down illegal steel production, stays tough on overcapacity

China’s Tianjin municipality and Hunan province have dismantled production facilities for inferior-quality steel bars following a national inspection by the State Council.

Premier Li Keqiang recently called for steadfast efforts to push overcapacity cuts after the inspection found that certain steel mills were trying to resume production of inferior-quality steel bars.

The State Council required all facilities producing inferior-quality steel bars to be dismantled across the country by the end of June, but the inspection found two mills in Tianjin were still in business, while one company shut down in Hunan province was seeking to resume production.

Government officials of Tianjin said on Aug 1 that relevant production facilities in the two companies found to be producing the steel bars had already been dismantled.

Previously, the city had discovered four companies involved in the production of inferior-quality steel bars, and the equipment used in the illegal production had been removed by the end of June.

Yin Jihui, director of Tianjin Municipal Commission of Industry and Information Technology, said Tianjin carried out a week-long crackdown on inferior-quality steel bars after being informed by the State Council about the inspection findings on July 18.

‘So far, 466 steel-making furnaces in 236 companies have been examined and no inferior-quality steel bar production has been found,’ he said.

A total of 12 officials responsible for the illegal production have been punished. The companies in question are under police investigation and will be given due punishment.

Yin said the city will adopt multiple measures such as strengthening supervision and encouraging tips in order to prevent resumed production by facilities that had been shut down.
Source: The Central People’s Government of the People’s Republic of China

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