SHANGHAI, Nov. 11 (SMM) -- According to inefficient capacity elimination task assigned to Hebei province, coking, iron making, steelmaking, coal, cement, and paper industries have failed to complete their inefficient capacity elimination task by 30%, 26%, 30%, 20%, 7%, and 7% respectively. If these industries still fail to complete inefficient capacity elimination task by the end of November, Hebei province will revoke companies’ licenses of these industries.
According to sources from an energy saving teleconference held in Hebei province on October 28th, only flat glass, zinc smelting, tanning, alcohol and ferroalloy industries have completed inefficient capacity elimination tasks. According to requirement of Hebei province, if a company fails to complete inefficient capacity elimination task before deadline, its production, safety work, watering and pollution discharge licenses shall be revoked according to law, and its application for new project and new land use shall not be reviewed and approved.
Total inefficient capacity elimination task is 9.36 million mt in pig iron industry in Hebei province in 2011. Based on this task, the 26% uncompleted task shall ask for elimination of 2.44 million mt inefficient capacity. If a 400 cubic meter blast furnace produces 560,000 mt pig iron, the pig iron industry has to eliminate at least five of such furnaces.
When striving to eliminate inefficient capacity, Hebei province also makes effort to innovate existing capacity and to consolidate industrial concentration.