New Development Zone to Take Shape Near Beijing
January 31, 2009
China’s port construction, steel and power giants will pour 192.9 billion yuan (28 billion U.S. dollars) for infrastructure construction in Caofeidian, an island-turned development zone in the Bohai Bay in north China, according to the city government of Tangshan, which administrates the zone.
Xinhua’s source with the government said on Wednesday that 65 billion yuan of the investment will be used for 105 infrastructure projects this year.
The 50-sq km development zone in Hebei Province is 220 km to the east of Beijing. It has been designated as a model of China’s environment-friendly industrial base.
The projects under construction this year will equip the zone with 200 million tons of port handling capacity and an initial industrial production condition for key companies, such as the Beijing Capital Iron and Steel Group’s steel plant, which moved from the capital city’s urban area to Caofeidian in 2007.
The Caofeidian industrial zone was put on China’s list of pilot areas for recyclable economy in October 2005. Chinese President Hu Jintao and Premier Wen Jiabao both paid visits to the zone. They expect it to become a demonstration area for scientific development and recyclable development.
Caofeidian has been mapped to become the country’s largest steel production base by 2010. An evaluation by the country’s environmental watchdog shows the steel plant will ensure 99.5 percent of solid waste and 97.5 percent of waste water are recycled.
State-owned giants like Petro China and Huadian Power Group have also made the zone their energy base.
Caofeidian, once a small sand spit in the Bohai Bay, has extended into a land of more than 50 square km through sea fillings since 2003. The frame of a modern city is beginning to take shape here as crowds of elite technicians and industrial workers swarm to the zone.
Source: Xinhua News Agency
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Beijing Close Obsolete Capacity in 2009
January 30, 2009
It is reported that Beijing is to step up emission cuts and backward capacity elimination efforts in the new year and plans to dismantle 10 million tonnes of inefficient iron making capacity, 6 million tonnes of steelmaking capacity, 0.5 million tonnes of papermaking and 15 million KW of electric capacity this year.
Mr Zhou Shengxian, minister of the Ministry of Environmental Protection said that China is still plagued with the heavy pollution at the moment despite the drops in national chemical oxygen demand and sulfur dioxide emission last year.
Related government bodies have carried out a slew of measures on key pollutants emission last year and set strict restrictions on those enterprises falling short of the requirements. By the end of December, waste water treatment capacity has incremented by 12.8 million tonnes per day and installed capacity for coal fired desulfurizing machine units by 86 million kW, both breaking the initial targets.
Totaling 16.69 million kW of small thermal power stations has been shut down in the year, 1.3 times of the initial plans. Meanwhile, the closedown of outdated capacity in papermaking, cement, iron making and coking sectors etc has also attained the projected progress.
In 2009, Beijing aims to increase sewage disposal capacity by 10 million tonnes per day, desulfurizing installed capacity for coal fired power plants by over 50 million kW and add 20 units of new steel sintering machines flue gas desulphurization facilities.
Furthermore, the central government would perform online monitor of the operation of the applied 300 million kW coal fried power plants desulfurizing machine units, 1,300 sewage treatments plants and over 6,000 national key pollution sources in the year and will punish those breaking the regulations in pollutants emission severely.
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48 Major Steel Mills in The Red
January 2, 2009
About two thirds of China’s major steel mills were in the red in November, suffering from high prices in raw materials and the decreasing prices of steel products.
Forty-eight out of 71 large and medium-sized domestic steelmakers saw a loss in November (six more than in October), with total losses for the month in the neighborhood of 12.77 billion yuan, China Securities Journal reported yesterday citing anonymous sources.
Analysts largely contributed the loss to high iron ore prices and dropping steel prices, and they remained pessimistic for the mills’ performance in December.
Chinese steelmakers agreed to pay a record of $92 per ton for iron ore in the 2008 long-term contract, and steel prices have dropped about 40 percent since June as a result of the global financial crisis.
Authorities are considering measures including buying some steel products for reserves to help the industry through the rough time, Minister of Industry and Information Technology Li Yizhong recently said in Beijing.
Reports said the government would likely spend 10-15 billion yuan to establish a reserve of 3-5 million tons.
Some major steelmakers have increased steel prices on the news.
Angang Steel will raise the price of hot rolling steel by 350 yuan per ton from January; Shougang Group will rise by 300 yuan per ton and China’s largest steelmaker Baosteel will also raise product prices by 6 to 10 percent from February.
Analysts said building up stocks may provide some support to prices in the short term, but the policy could also mean producers take longer to emerge from the current slump in demand with a U-shaped recovery rather than a V-shaped bounce, since the government stocks may return to the market as prices recover.
The government could also increase export tax rebates on high-end steel products and will encourage industry reshuffling as well as innovation.
Source: China Steel Net.com
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China’s Zoomlion buys Italy’s construction machinery maker CIFA
October 8, 2008
Local construction machinery maker Changsha Zoomlion said yesterday it has completed its acquisition of Italy’s Compagnia Italiana Forme Acciaio SpA (CIFA), with Goldman Sachs and two other investors.
Changsha-based Zoomlion paid 163 million euros for a 60 percent stake in the Italian construction machinery maker from Italian private fund Magenta Fund and other CIFA shareholders in an all-cash transaction. Goldman, Mandarin Capital Partners and Chinese private equity firm Hony Capital will hold the remaining 40 percent.
The deal is expected to give Zoomlion a foothold in foreign markets and boost its overseas sales by “combining CIFA’s international brands, global sales and distribution network”, Zhan Chunxin, chairman and CEO of Zoomlion, said.
He said he expects the company to generate 40 percent of its sales outside China by 2010. Zoomlion recorded 1.02 billion yuan of exports in 2007, or roughly 11 percent of its overall sales.
CIFA, headquartered in Milan, has a 20 percent market share in Western Europe and ranks third in the global concrete machinery market.
Zoomlion is No 2 behind Sany Heavy Industry in the domestic concrete machinery sector and is expected to be in the top two in the global market after the acquisition.
“The deal will improve Zoomlion’s global sales and technology, which will make it the top Chinese concrete machinery maker by global sales. But Sany will still dominate the local market,” Xu Xingyue, an analyst at Beijing-based Changcheng Securities, said.
But some analysts warned of short-term risk, as concrete machinery is linked to the real estate industry and could be affected by current global economic woes.
The acquisition comes after Sany said it would invest in a new US plant.
China Daily
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Chinese economy where to go post-Olympics
September 28, 2008
As the 2008 Beijing Olympics ended in a splendor of fireworks, concerns over a post-Games downturn for the Chinese economy re-emerged.
History shows that some host countries had experienced post-Olympic declines because investment dropped, such as Tokyo and Seoul.
Japan witnessed a drastic fall in growth the year after the 1964 Games, down to 5.2 percent from the year-earlier 13.1 percent. The Republic of Korea saw the rate slip from 10.6 percent to 6.7 percent in 1989.
Will China follow the same pattern? The world ponders. You can read the rest of article published in China Daily here : News Analysis: Chinese economy where to go post-Olympics
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