SHANGHAI, Jul 18 (SMM) – To drive the transformation and upgrading of the local stainless steel industry, the Dainan government in Jiangsu province ordered the shutdown of 687 induction furnaces across 353 stainless steel plants by the end of July.
The order came after an announcement on May 22, when the local government decided to permanently shut all induction furnaces across the town from May 24.
Some furnaces that resumed after inspections in late May will be permanently closed, SMM learned.
On April 24, the provincial authorities introduced regional restrictions on Dainan for six months. This will also suspend the approval process for all new projects in the area in this period.
Dainan town is home to about a thousand stainless steel companies. At Xinghua Fuyang Special Steel, a local factory that has utilised induction furnaces for decades, its two furnaces with operating capacity of 2 mt, as well as a coal-fired rolling line, were shut.
Other rectification works in the town include switching from coal to natural gas and installing wastewater recycling facilities at steel rolling plants. Thirty small steel rolling plants were closed, with the remaining 17 undergoing rectification. Stainless steel products at each plant shall be combined for acid washing, in order to minimise environmental contamination, SMM learned.
Induction furnaces across Dainan produced about 100,000 mt of crude stainless steel every month, and this accounted for 5% of overall output in China.