SHANGHAI, Oct 31 (SMM) – Tangshan of Hebei province will eliminate all zombie enterprises in the steelmaking sector, resolving overcapacity by some 5 million mt before the end of this year, SMM learned. 

The move is in response to a three-year Blue Skies initiative launched by the local government in october. 

Zombie mills are mills that have stopped production but have not shuttered. By the end of 2018, the city will also reduce iron-making overcapacity by 2.81 million mt, and shut down supportive sintering and coke furnaces. 

By 2020, all blast furnaces below 1,000 m³, converters with capacity below 100 mt, and sintering machines below 180 m² will be phased out; blast furnaces below 1,500 m³ and converters under 150 mt will be removed step by step. The number of steel companies will be reduced to 30 from the current 40 by 2020.