China's Tangshan to build new $5.5 billion steel project, cut capacity: Xinhua

China's Tangshan to build new $5.5 billion steel project, cut capacity: Xinhua

The sun sets behind a chimney of a steel mill in Tangshan, Hebei province February 18, 2014. REUTERS/Petar Kujundzic/File Photo

Mon Nov 14, 2016

The sun sets behind a chimney of a steel mill in Tangshan, Hebei province February 18, 2014. REUTERS/Petar Kujundzic/File Photo

China's Tangshan, a major steel-producing city in northern Hebei province, will create a new steel conglomerate and relocate 8 million tonnes of annual production capacity to a site on the coast, the official Xinhua news agency reported on Tuesday.

The city, one of China's most polluted, will consolidate 10 local steel firms and invest 38 billion yuan ($5.54 billion) to build the new Tangshan Bohai Steel Project, Xinhua reported. The project will be sited 40 kilometers from the city's old steel district of Fengnan.

Tangshan will reduce total capacity by 3.55 million tonnes as part of the restructuring program, the latest move in an industry drive to shut down outdated plants and improve the environmental performance of its massive steel sector.

http://www.reuters.com/article/us-china-steel-restructuring-idUSKBN13A0BI

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