September 08, 2008

China unlikely to shut largest steel plants for Olympics

It is reported that China is unlikely to shut its largest steel plants in the regions around Beijing during the Olympic Games but could close more private mills that do not meet emission standards.

Mr Qi Xiangdong vice secretary General of the China Iron and Steel Association said although officials have said anti pollution measures will be taken in the five surrounding provinces of Hebei, Tianjin, Shandong, Inner Mongolia and Shanxi, no details have been released. He said "We have not seen any documentation for steel mills other than Shougang, but we do not expect surrounding big steel companies like Tanggang or Hangang to close."

He added that "If private companies have pollution or emissions issues, they may have to take measures, further he was unable to provide an estimate of what proportion of steel mills might have to close in Hebei, the province that neighbors Beijing and accounts for 10% of China's steel output.”

China has already announced a two month shutdown of some plants belonging to No 7 steel producer Shougang to help reduce pollution in month of August 8 to 24 Games and the following Paralympics.

Some economists believe that regions surrounding Beijing are still negotiating with the central government for adequate incentives to close industrial plants and ensure blue skies for china's showpiece. Tanggang was China's third biggest producer of steel last year with Hangang ranked 14th in the country. Beijing is one of the most polluted cities in the world and International Olympic Committee research indicates there is a slight risk to the health of athletes in endurance events when the air quality is lowest.