Xinhua reported that China's Shangdong Province is going to move 40% of its steel industrial capacity to coast areas and build a high-quality steel base before 2011 along its coast areas.

The east coast province will limit its raw steel production under 50 million tons and eliminate obsolete production capacity.

The base to be built called Rizhao Iron and Steel Base will reduce the cost and raise profit of steel production at the downturn world market.

(Sourced from Xinhua)