Shanxi approves metallurgical industry stimulus plan

Apr. 22, 2009 (China Knowledge) - The Shanxi provincial government last week approved a stimulus plan for the metallurgical industry in the province, the First Financial Daily reported.

Under the stimulus plan, the existing over 200 iron and steel enterprises in Shanxi, Northwest China, will be consolidated to around 10 large firms so as to enhance the overall competitiveness of Shanxi's iron and steel industry, sources reported.

The plan will be implemented in two phases. In the first phase from 2009 to 2011, the iron and steel enterprises in the province will be reduced to about 50, and five large iron and steel production bases, namely Taiyuan, Changzhi, Yuncheng, Linfen and Luliang, will be built. The annual production capacity of Taiyuan Iron & Steel Group is expected to increase to 20 million tons.

During the second phase from 2012 to 2015, the number of iron and steel enterprises will be reduced to 10. Taiyuan Iron & Steel Group will have a steel production capacity of more than 30 million tons, accounting for 67% of the province's total.

In 2008, the province produced 28 million tons pig iron, and 23.5 million tons crude steel.