SMM Network News: the website of Jiangsu Iron and Steel Industry Association published a notice on the revision of the "measures for the implementation of Steel capacity replacement" and extensively solicited opinions. It can be seen from the notice that the number of measures for the implementation of capacity replacement in the Iron and Steel Industry (draft for soliciting opinions) has increased from 12 to 16 compared with the measures for the implementation of capacity replacement in the Iron and Steel Industry issued by the Ministry of Industry and Information Technology in January 2018. Among them, the proportion of replacement in key areas is not less than 1.5 per cent, and the split and auction of production capacity are also stipulated.

Circular on soliciting opinions on the revision of the measures for the implementation of Iron and Steel capacity replacement

All relevant units: According to the requirements of the Ministry of Industry and Information Technology, opinions are widely solicited on the "measures for the implementation of Steel capacity replacement" (draft for soliciting opinions). All units are requested to send the relevant written suggestions to the jsgt8888@126.com mailbox before July 29th, so that they can be summarized and submitted. Contact: Jiang Li, Dai Xuemin Contact: 1865 2992626, 13390910244 Jiangsu Iron and Steel Industry Association July 24, 2020

Attachment:

Measures for the implementation of capacity replacement in the Iron and Steel Industry (draft for soliciting opinions). Pdf

Article 1 in order to strictly prohibit new production capacity in the iron and steel industry and promote layout optimization, structural adjustment and transformation and upgrading, these measures are formulated in accordance with the guiding opinions of the State Council on resolving the contradiction of serious excess capacity (Guofa (2013) No. 41) and the opinions of the State Council on eliminating excess capacity and achieving Development in Iron and Steel Industry (Guofa (2016) No. 6).

Article 2 these measures shall apply to projects for the construction of ironmaking and steelmaking equipment by iron and steel enterprises of all forms of ownership within the territory of the people's Republic of China. Before the construction project is put on record, the production capacity replacement plan shall be announced.

Article 3 the capacity referred to in these measures refers to the annual production capacity corresponding to iron and steel smelting equipment; equivalent replacement means that the construction capacity is equal to the withdrawal capacity; reduction replacement means that the construction capacity is less than the exit capacity; replacement ratio refers to the ratio of withdrawal capacity to construction capacity.

Article 4 the key areas for the prevention and control of air pollution referred to in these measures refer to Beijing-Tianjin-Hebei, Yangtze River Delta, Pearl River Delta, Fen-Wei Plain and other "2x26" atmospheric passage cities. Among them, the Beijing-Tianjin-Hebei region refers to Beijing, Tianjin and Hebei Province; the Yangtze River Delta region refers to Shanghai, Jiangsu Province, Zhejiang Province and Anhui Province; the Pearl River Delta region refers to Guangzhou, Shenzhen, Zhuhai, Foshan, Jiangmen, DongSanhe, Zhongshan, Huizhou, Zhaoqing and other nine cities in Guangdong Province. Fen-Wei Plain refers to Jinzhong, Yuncheng, Linfen and Luliang City in Shanxi Province, Luoyang and Sanmenxia City in Henan Province, Xi'an, Tongchuan, Baoji, Xianyang, Weinan City and Yangling demonstration Zone in Shaanxi Province. Other "2x26" atmospheric passage cities refer to Taiyuan, Yangquan, Changzhi, Jincheng in Shanxi Province, Jinan, Zibo, Jining, Dezhou, Liaocheng, Binzhou, Heze City in Shandong Province, Zhengzhou, Kaifeng, Anyang, Hebi, Xinxiang, Jiaozuo and Puyang in Henan Province.

Article 5 the smelting equipment used for capacity replacement shall be included in the list of smelting equipment for the iron and steel industry submitted by the State Council's SASAC and the people's governments at the provincial level to the State Council for filing the implementation plan for capacity removal in 2016. The legal compliance smelting equipment built in 2016 and later can also be used for capacity replacement. Capacity included in steel production capacity tasks, withdrawal capacity supported by compensation funds, "strip steel" capacity, backward production capacity, capacity of dismantled main equipment prior to confirmation of replacement, unrestructured or unliquidated capacity of zombie enterprises, casting and ferroalloy and other non-iron and steel industry smelting equipment capacity, shall not be used for replacement.

Article 6 the construction of ironmaking and steelmaking capacity shall be replaced separately. The amount of output capacity in the process of replacement shall be determined in accordance with the capacity in the list of smelting equipment in the iron and steel industry submitted by SASAC of the State Council and the people's governments at the provincial level to the State Council for record implementation plan in 2016; for legal compliance smelting equipment built in 2016 and later, the amount of capacity withdrawal shall be determined in accordance with the project record capacity. The amount of construction capacity in the process of replacement shall be approved in accordance with the Accounting Table of Construction capacity. Enterprises must go through the formalities of capacity replacement in the construction of dephosphorization converter. For the construction of non-blast furnace ironmaking, vanadium extraction converter, rotary kiln-submerged arc furnace (RKEF) and other equipment, capacity verification must be reported to the Ministry of Industry and Information Technology. The proportion of replacement in key areas for the prevention and control of air pollution is not less than 1.515, and that in other areas is not less than 1.25. When the compliance capacity obtained by an enterprise after the completion of substantive merger and reorganization (absolute holding and completion of industrial and commercial changes such as legal person, equity relationship, articles of association, etc.) is used for project construction, the replacement ratio in key areas for air pollution prevention and control is not less than 1.25V1, and that in other areas is not less than 1.1V1. The iron and steel enterprises in each region withdrawing from the construction of electric furnaces and the supporting equipment such as sintering, coke ovens and blast furnaces can replace the steelmaking capacity by the same amount, and the ironmaking capacity withdrawn may be used for replacement in accordance with the provisions of these measures. The same amount of replacement can be carried out in the project of replacing the new electric furnace with the existing electric furnace. The same amount of replacement can be carried out for the internal technical transformation projects in which there is no new iron and steel production capacity in the original plant. The ironmaking capacity of non-blast furnace ironmaking projects such as sintering, coke oven, blast furnace and other equipment can be replaced by the same amount of ironmaking capacity. Provinces (autonomous regions and municipalities) that have not completed the target of total steel production capacity control shall not accept steel production capacity sold by other regions. It is forbidden to increase the total production capacity of iron and steel in key areas for the prevention and control of air pollution and demonstration areas of ecological civilization. It is forbidden to build or expand iron and steel projects within 1 km of the trunk and tributaries of the Yangtze River.

Article 7 the construction of iron and steel smelting project enterprises shall formulate a production capacity replacement plan in accordance with the relevant provisions of these measures. The plan mainly includes the construction project and the withdrawal of the project, and the following contents should be specified: (1) the area where the construction project is located, the name of the enterprise, the type, quantity and production capacity of the proposed smelting equipment (including corresponding pretreatment and refining facilities), planned start-up and production time. 5 (2) the region where the withdrawal project is located, the name of the enterprise, the type, quantity and production capacity of the smelting equipment to be withdrawn, and the schedule for demolition. When it comes to inter-provincial (autonomous regional and municipal) capacity replacement, a notice on the transfer of production capacity shall be attached (Annex 2). In principle, the production capacity of the same smelting equipment shall not be split and transferred, and if it is really necessary, there shall be no more than 3 transferee enterprises. For the same smelting equipment capacity transfer of up to many enterprises, the capacity transferor shall specify all the capacity transferees, which shall be listed together in the capacity transfer announcement and the capacity replacement plan announcement (Annex 3). The reasons for the capacity of the transferee shall be explained if it is not possible to specify the capacity of the transferee for the time being.

Article 8 the construction iron and steel smelting project enterprise shall, in accordance with the relevant requirements of each province (autonomous region and municipality), submit the capacity replacement plan to the competent department of industry and information at the provincial level where the construction project is located. The competent department of industry and information technology at the provincial level shall accept it in accordance with the relevant provisions of these measures, and entrust a third-party organization with the credit grade of Class A project in the metallurgical industry to evaluate the capacity replacement plan submitted by the construction project enterprise, after verifying the authenticity and compliance of the capacity replacement plan, it shall be made known to the public on the portal of the competent department of industry and information technology at the provincial level. In principle, the publicity period of the capacity replacement plan shall not be less than 20 working days, and shall be announced after there is no objection.

Article 9 the transferor of cross-provincial (autonomous region and municipal) production capacity shall be subordinate to the central enterprise, and the subordinate central enterprise shall entrust a third-party organization with the credit grade of Class A projects in the metallurgical industry to evaluate the capacity replacement plan, verify the authenticity and compliance of the transferred capacity, report it to the SASAC of the State Council for confirmation, and announce it to the public on the central enterprise portal. The transferor of production capacity shall be other enterprises, and the competent department of industry and information technology at the provincial level where the transferor is located shall entrust a third-party organization with grade An engineering credit of the metallurgical industry to evaluate the capacity replacement plan, after verifying the authenticity and compliance of the transferred capacity, it shall be made known to the public on the departmental portal. In principle, the time limit for publicity shall not be less than 20 working days, and the announcement of the transfer of production capacity shall be announced after there is no objection.

Article 10 the production capacity replacement plan shall be strictly implemented after the announcement, and the change procedure shall be strictly carried out if it is really necessary to make adjustments. If there is a change in the quantity or production capacity of the smelting equipment to be built (or withdrew) before the construction project is put on record, the construction project enterprise shall re-formulate and submit the capacity replacement plan in accordance with the relevant provisions of Article 7 and Article 8 of these measures, the competent department of industry and information technology at the provincial level shall re-accept it in accordance with the relevant provisions of Article 8 of these measures. When the changed capacity replacement plan is announced, the original capacity replacement plan must be cancelled at the same time. If the address and enterprise name of the construction project change before the project record, the construction project enterprise shall notify the competent department of industry and informatization at the provincial level by letter, and the competent department of industry and informatization at the provincial level shall make an explanation on the portal website in time after examination and verification.

Article 11 before the construction project is put into production, the capacity transferor shall dismantle the withdrawal equipment for replacement so that it does not have the conditions to resume production. In the case of the split and transfer of the production capacity of the same smelting equipment, the commissioning time of the construction project shall be based on the time of the first actual completion and commissioning project, and the relevant equipment shall be dismantled and put in place according to the requirements. In accordance with the announced capacity replacement plan, the provincial industrial and information departments are responsible for supervising the implementation and ensuring that the withdrawal equipment is removed in place. When it comes to inter-provincial (autonomous regional and municipal) capacity replacement, the competent department of industry and information technology at the provincial level where the capacity transferor is located (the central enterprise) shall be responsible for supervising the removal of the exit equipment in place. For special cases where it is really necessary to retain smelting equipment, such as for use in industrial site parks, it must be reported to the Ministry of Industry and Information Technology by the competent department of industry and information technology at the provincial level (the central enterprise) where the transferor is located. The Ministry of Industry and Information Technology, in conjunction with the relevant departments, will coordinate the study and put forward opinions on how to deal with it.

Article 12 before the construction project is completed and put into operation, the competent department of industry and information technology at the provincial level where the construction project is located shall entrust a third-party organization with the credit grade of Class A project in the metallurgical industry to evaluate it. Verify the consistency of the region, enterprise name, type, quantity and production capacity of the proposed smelting equipment with the announced capacity replacement plan, and the construction project can be put into production only after the evaluation is passed. If the region where the construction project is located, the name of the enterprise, the type, quantity and production capacity of the proposed smelting equipment are inconsistent with the announced capacity replacement plan, the construction project shall not be put into production.

Article 13 in the judicial auction of steel production capacity, smelting equipment and steel production capacity shall be auctioned as an indivisible whole. The people's court responsible for executing the auction shall seek the opinions of the people's government at the provincial level to which the person subject to execution belongs in advance and, after obtaining written consent, verify the authenticity and compliance of the steel production capacity to be auctioned with the competent department of industry and information technology (central enterprise) at the provincial level, and the competent department of industry and information technology at the provincial level (central enterprise) shall verify and issue written opinions in accordance with the relevant provisions of these measures, The people's court may execute the auction only after there is no difference. After the auction transaction is completed and the confirmation is signed, the buyer shall formulate and submit a production capacity replacement plan in accordance with the relevant provisions of Article 7 and Article 8 of these measures, which shall be accepted by the competent department of industry and information technology at the provincial level in accordance with the relevant provisions of Article 8 of these measures. For those involving inter-provincial (autonomous regional and municipal) auctions, the confirmation of the transaction signed by the buyer and the auctioneer after the completion of the auction shall be deemed to be the same as the announcement of the transfer of production capacity as stipulated in Article 9 of these measures. 8 before the construction project is put into production, the person subject to execution shall remove the equipment used for replacement and withdrawal. If the person subject to execution refuses to carry out the demolition, the people's court responsible for executing the auction shall enforce it in accordance with relevant laws and regulations to ensure that the equipment used for replacement and withdrawal is removed in place.

Article 14 the Ministry of Industry and Information Technology shall organize spot checks on the production capacity replacement plans announced by various provinces (autonomous regions and municipalities), and at the same time give full play to the supervisory role of industry organizations, media and other sectors of society. Enterprises, design consulting units and third-party evaluation institutions that practice fraud and lead to adverse social impacts in the process of steel production capacity replacement shall be punished in accordance with the rules and regulations. The regions and central enterprises that are not strict in the examination and control and the supervision and implementation are not in place shall be ordered to make rectification and reform within a time limit, notify the whole country if the circumstances are serious, and investigate the responsibility of the relevant responsible persons in accordance with laws and regulations.

Article 15 in accordance with the Circular on improving the replacement of Iron and Steel production capacity and the filing of projects (Power Development and Reform (2020) No. 19), the production capacity replacement plan, which has been announced and announced by the competent department of industry and information technology at the provincial level before January 24, 2020, may continue to be implemented in accordance with the original method. After the promulgation of these measures, if there is a change in Article 10 of these measures in accordance with the Circular on the Printing and Printing of measures for the implementation of capacity replacement in some Industries with serious overcapacity (Ministry of Industry and Information Technology (2015) No. 127) and the Ministry of Industry and Information Technology on the Printing and Printing of measures for the implementation of capacity replacement in Steel-cement-Glass Industry (Ministry of Industry and Information Technology (2017) No. 337), if there is a change in Article 10 of these measures. Article 16 these measures shall enter into force as of the date of promulgation and shall be revised in due course in the light of the development of the industry.

Scan the QR code and join the SMM metal communication group.