Friday, 25 Feb 2011
Analysts said a developmental trend in China will see steel mills being relocated to coastal areas for financial and environmental reasons.
Ms Zhang Lin a senior analyst from Beijing Lange Steel Information Research Center said China is learning a lesson from the major economies and is now planning to move the industry to the coastal areas from inland regions.
She said that "The move will be beneficial to the environment because steel production is a process which consumes huge amounts of water. Under the pressure of fewer resources and worsening environmental pollution, it is wise to make this change.”
She added that the move will provide savings for the steel companies in the importation of equipment. She also said "The companies used to spend a lot on transporting the imported equipment inland. However, if the mills are located on the coast and close to ports it will be more convenient and economical."
According to the Lange Steel Information Research Center, North China steel mills produced a total of 170.89 million tonnes in 2010 accounting for 27.26% of the national industry production.
Ms Zhang said north and northeastern China have long been the key production bases, and their production capacity is already big enough to meet targets. It is part of a strategic plan to move production to the coastal areas to ensure the sustainable development of the industry.
Shougang Group, formerly the largest steelmaker in Beijing, moved its production facilities to Caofeidian Port in Hebei province in January. Ms Zhang said the mills in Caofeidian are conducting research on the desalination of seawater for industrial use, a development which if realized, will prove profitable for the industry.
CISA has also asked steelmakers to diversify their range of products, and contribute more towards the development of high speed railways, urban metro lines, oceanographic engineering off shore oil exploration and the renewable-energy industries.
Tags:steel production, northeastern china, Beiging, China Iron and steel association