Aiming to boosting local economic growth, the authorities in the Chinese province of Hubei are due soon to officially issue their plan for restructuring and invigorating the steel industry in the province. Meanwhile, local government insiders have released some details of the plan to the media.
Irrational industrial structure has hindered the development of the steel industry in Hubei over a long period. Thus, the plan for restructuring and invigorating the steel industry in the province emphasizes the important role of industrial restructuring. According to the plan, in the coming three years Hubei Province will have to optimize industrial structures by supporting mergers and acquisitions, thereby increasing industrial concentration and also accelerating the elimination of dated capacities. Within the scope of the plan, the Hubei authorities are targeting annual production of 28 million mt of crude steel, 26 million mt of pig iron and 32 million mt of finished steel by 2011.
One of the most important industries in Hubei, the steel industry in the province is mainly distributed in the areas of Wuhan, Huangshi, and Ezhou. In 2008, Hubei-based mills produced 19.91 million mt of crude steel, 18.93 million mt of pig iron, and 21.51 million mt of finished steel, up by 12.4 percent, 9.6 percent, and 15.4 percent respectively year on year.