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
Tags: environmental watchdog, Beijing, north chinaRelated Posts:
The Steel Revitalization Plans in China
January 29, 2009
It is reported that the State Council has worked out the steel revitalization plans, which focus on controlling the whole volume, washing out the obsolete capacity and encouraging technical innovation and merger & acquisition to bail out the slumping domestic steel industry.
Mr Wang Yifang Board chairman of Hebei Steel Group said even though the released plan has not cover detailed regulations, it will provides timely help for the development of the steel enterprises in Hebei province, the largest steel production base in China. To the large-sized steel mills, the plan means low cost expansion.
As one of the largest steel complexes in China, Hebei Steel Group has enhanced its place in steel industry since it was founded, and became the national major supportive enterprise.
As per local steel assistance plan, total crude steel capacity would be controlled within 80 million tons by 2020. In order to realize the goal, the province has to concentrate the quality steel resources by promoting the progress of M&As. Most experts believe that the steel revitalization policy will lay a solid floor for the further development of Hebei steel industry.
According to the plan special funds will be allocated from the central budget to encourage technological advancement of the sector, readjustment of products mix and improvements of product quality
As one of the pillar industries in Hebei province, the steel industry contributes more than 25% of the provincial total industrial profits in recent years. However, it still lacks of competitiveness since most local produced products are primary one, with few high value-added and high-tech contained products.
The local government should draw some supportive policies in line with the steel revitalization plan to encourage the technologic innovation. Only in this way, can Hebei province form high quality vanadium and titanium, construction steel and slabs production lines with high value added products, and end the extensive develop pattern in local steel industry.
Source: China Steel net.com
Tags: industry, steel, EURelated Posts:
China’s largest steel maker is being created
January 1, 2009
Three Chinese steel companies — Tangshan Iron and Steel Co, Handan Iron and Steel Group and Chengde Xinin Vanadium and Titanium Co — agreed on Tuesday to merge, creating the biggest listed steel maker in China.
The three Hebei-based companies were all listed companies under Hebei Iron and Steel Group. The new entity will be the only listed company of the group after the merger.
Annual production of raw steel will be about 32 million tonnes, which will be more than Baosteel’s 30 million tonnes.
Tangshan will merge with the two smaller firms through share swaps. One Handan share will be swapped for 0.775 Tangshan share and one Chengdu share for 1.089 Tangshang shares, according to the agreement.
Handan and Chengde would cease to exist as separate legal entities and their assets, debts, businesses and staff would go to Tangshan, analysts said.
Tangshan said the new company would be the only target of any asset injection by the parent company and thus the only beneficiary.
Hu Yanping, steel analyst with Umetal.com, said the merger would not increase the new company’s profitability in the short term, although its production capacity would be the largest in China.
“The move will enhance steel industry restructuring, which will cushion the blow [against the industry] as the financial crisis has hurt economic growth.”
The plan still needs shareholder and regulatory approval.
Shares of the three companies had been suspended since August 28. Trading resumed on Tuesday.
Tangshan fell by the daily limit of 10 percent to 4.10 yuan (about 58 US cents) from the previous trading day. Handan fell 8.78 percent to 3.43 yuan and Chengde fell by the daily limit to 4.95 yuan.
Tags: product, steel industry, hebeiRelated Posts:
Energy: Steel mills to cut production on slump demands
October 8, 2008
Several leading Chinese steel mills are set to cut production to cope with the pressure of weak demand hanging over their iron-smelting furnaces.
Shougang Group and three other big domestic iron and steel manufacturers will slash 20 percent of their production this month amid slack domestic demand and dropping steel prices, according to Monday’s China Securities Journal.
These major steel makers included Hebei Iron and Steel Group, Shandong Iron and Steel Group and Anyang Iron and Steel Group.
Hu Kai, a senior industry analyst with the Umetal.com website, told Xinhua on Monday the sagging price was the main cause of the production reduction.
“There is no signal that the steel product price would be ratcheted up in the near future, as some steel product prices remain high compared to previous years, construction-use steel products in particular.”
China’s real estate sector was currently in its nadir, which also pulled down steel product consumption, he added.
Steel prices on the domestic market dropped 5 percent in the week preceding the weeklong National Day holiday that started September 29, according to the newspaper citing Xu Xiangchun, a mysteel.com analyst.
These steel mills would endeavor to further reduce the purchasing price of raw materials, adjust product mix and enhance communication among the companies respective management, according to the Beijing-based newspaper.
Hu said to some extent these companies had overreacted to the sluggish market as the output cutback exceeded the actual market demand decline.
Beijing-based Shougang Group declined to comment on the news report when reached by Xinhua. Its shares shed 5.31 percent to 3.39 yuan (50 cents) per share on Monday trading.
Source: China Daily
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China Auto Parts Industry
July 21, 2008
In 2007, China national macro-economy continued to maintain a rapid growth momentum. A further increase of residents’ income and price cut of passenger vehicles stimulated consumption demand to a great extent. Influenced by the factor, the auto industry continued to keep the good momentum of development recorded in the previous year. The year of 2007 witnessed a new record high in both production and consumption of auto, with auto production and consumption reaching 8.88 million units and 8.79 million units respectively.
Rapid development of China’s auto industry has provided a broad space for auto parts industry. In recent years, China’s auto parts industry has made a great progress and some innovative auto parts producers have grown up rapidly, fully demonstrating the vitality of self-brand producers of auto parts.
With the fast development of auto parts production base in Changchun, capital of Jilin province, Shiyan, a city in Hubei province, Wuhu, a city in Anhui province, Huadu, a city in Guangdong province and Beijing-Tianjin-Hebei Bohai Economic Circle, auto parts industry clusters and regional economic development have undoubtedly become the new hot spots in the recent years. According to incomplete statistics, China has around 1,000 auto parts based industrial parks across the country and among them 100 parks are key regional clusters or development zones.
China’s export of auto parts reached CNY14.5 billion in 2007. International auto giants have become more and more confident of the quality of China’s auto parts. Sales revenue of China’s auto parts producers reached CNY403.5 billion in 2006. It is estimated that the output value of China’s auto parts is expected to reach CNY800 billion in 2010.
Source: Shanghai Daily
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