People’s Daily Online reported that smaller steel mills running obsolete capacities with old equipments, especially those mini steel rolling plants have shown signs of resurrections in Northeast China Liaoning province despite local government’s firm decision to stop it over the years.

And survey shows problems of these mini mills mainly represented as follows:

1. The environmental issues of old factories have not been wholly repaired. Local authority put forward detailed handling suggestions for local 10 steel mills failing to meet environment standard in 2004. However, only 2 of them fulfilled the rectification with the remainder still running in defiance of the command of this, 4 continued normal activities and 4 conducted provisional halt.

3. Disorderly capacity expansion was also severe. A local survey at 5 cities in this June showed totaling 13 steel mills expanded in disregard of government instructions. And some 21 mills run with inefficient equipments among the 84 mills enrolled in an earlier survey.

2. To tackle current unfavorable situation, officials at local environmental protection dept said they would mark out a timetable for those steel projects falling short of national industry policy to close, and will punish leaders approved or failed to supervise those projects.

(Sourced from People’s Daily Online)