International Steel Mills
July 12, 2016
Baosteel Cutting Capacity and Urges Other Chinese Mills to Follow Suit
Written by Sandy Williams
Baosteel Group says it will cut its crude steel capacity by 9.2 million tonnes between 2016 and 2018. At a government meeting on July 8, Baosteel’s chairman Xu Lejiang urged state-owned steel firms to use merger and acquisitions to address excess steel capacity. He also urged the government to step up efforts to eliminate inefficiencies in the industry.
The proposed capacity cut is equivalent to a quarter of Baosteel’s 2015 production of 36.11 million tonnes.
