China plans by 2017 to eliminate overcapacity in the steel industry

Almaty. March 23. Silkroadnews - China will accelerate the reorganization of the iron and steel industry, which has excessive investment, to bring it back to a "balanced level" by 2017, said the agency "Xinhua".
As noted, the Ministry of Industry and Information Technology intends to bring the industry average profit and return on assets to a rational level that will be used by more than 80% of production capacity.
"This is another step of the government aimed at eliminating excess capacity, a problem which first appeared in China during 2008 financial crisis. Last year, China produced 823 million tons of steel, or 50% of the world",- said in a statement.
The project document proposed to accelerate the process of mergers and acquisitions to create 3-5 major steel mills by 2025 and to ensure that the top 10 companies will produce at least 60% of total production.
The plans of the Ministry also includes improving rules of accession and exit to the market to eliminate overproduction.
The project emphasizes that the pollutant emissions and energy that companies in the sector must comply with national standards, and their goal should be to complete processing of solid waste by 2025.
Ministry of Industry and Information Technology will also promote the establishment of more research centers, laboratories and industrial organizations to encourage innovation in the sector, is the message.