What’s new: The listed arm of steelmaker HBIS Group Co. Ltd. announced that the group’s phase-one steel plant project in the coastal city of Legang, Hebei province, came into operation on Monday, with a total iron output capacity of 7.32 million tons and steel output of 7.47 million tons per year, according to a filing to the Shenzhen Stock Exchange on Monday.
The project consolidated four steel mills in the inland city of Tangshan. Those plants previously had a combined iron output of 9.15 million tons and steel output of 9.34 million tons annually.
What’s the background: The consolidation and relocation of the HBIS steel mills is part of a 3-year plan launched by the Hebei government in order to tackle the province’s excess capacity.
Hebei produced 240 million tons of steel in 2019, or 24.2% of the country’s total steel production. The 3-year plan aims to cut the figure to 200 million by year-end.
Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)
