November 22, 2008

Guangdong grants CNY 25 million subsidy for capacity closure

Yangcheng Evening News reported that Guangdong province has granted the first batch of a total of CNY 24.82 million subsidies for obsolete steel capacity elimination.

After approbation, six cities incl. Meizhou, Heyuan, Qingyuan, Yunfu, Yangjiang and Maoming got the compensation. These cities washed out a total of 1.57 million tonnes of outdated steelmaking capacity and 0.11m tons of backward iron making capacity.

The province has inked written commitment with Beijing at the end of last year to phrase out 10 million tonnes of obsolete steel capacity within the 11th "Five-Year" Plan. As a result, the province has picked up the elimination progress and reaped desirable outcome. So far, more than 5 million tonnes of outdated capacity has been removed.