Two steel producers punished for launching new projects

Updated 2016-12-27 09:26:34 Global Times

The State Council, China's cabinet, has punished two steelmakers for violated rules and regulations, reflecting the central government's determination to control the capacity glut, experts said on Monday.

Jiangsu Huada Steel Co Ltd and Hebei Anfeng Steel Co Ltd have violated the rules and regulations by launching new steel projects, according to a statement published on the central government's website on Monday. Huada, located in East China's Jiangsu Province, has illegally produced steel, which had a negative impact on the local industry, read the statement. Anfeng, located in North China's Hebei Province, was ordered to tear down its obsolete furnaces.

Two officials, Hebei's vice governor Zhang Jiehui and Jiangsu's vice governor Ma Qiulin, have been punished for the companies' violations.

This shows the government's determination to tackle the overcapacity issue, Wang Guoqing, research director at the Beijing Lange Steel Information Research Center, told the Global Times on Monday. "It's more like 'killing the chicken to warn the monkeys,' to warn the many by punishing a few," she said.

To phase out low-end products and implement policies against overcapacity, those who violate the rules and regulations should be severely punished, Li Xinchuang, president of the China Metallurgical Industry Planning and Research Institute, told the Global Times on Monday.

The authority has also publishedthe names of 111 and 27 people in Jiangsu and Hebei, respectively, the statement noted.

"It will also help ensure a fair market environment, as well as the further development of the domestic steel industry," Li noted.

The State Council announced a plan to tackle the steel industry problem in February. The plan called for cutting crude steel output by 100 million to 150 million tons from 2016 to 2020.

The country's steelmakers have hit their target of reducing steel output by 45 million tons, Xu Shaoshi, head of the National Development and Reform Commission, was quoted as saying by the media.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58April 23 2018 00:29:17

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16April 23 2018 00:29:17

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18April 23 2018 00:29:17

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords