North China Shanxi province, a major domestic coal production base is expected to consolidate its coking industry within the next four years due to a massive supply glut.

According to the consolidation plan, Shanxi will increase efforts to phase out outdated coke capacity of over 40 million tonnes by 2015 and meanwhile the number of independent coking enterprises will be pared down from 160 at present to 40.

Shanxi is China largest coke producer and carries a lot of weight in the national total coke production and distributions. With coke production capacity of approximately 160 million tonnes currently, it yielded more than 90 million tonnes of coke in 2011.

Nevertheless, coking enterprises see their profit margin eroded by overcapacity that remains in its place for a long time. In face of this tough situation, Shanxi will strive to undergo restructuring by mergers and acquisitions, upgrade equipment and promote energy saving and emission reduction.

By 2015, it will form 4 coking parks with annual coke production capacity of 10 million tonnes, 3 sizable coking enterprises with annual production capacity of 10 million tonnes and another 10 5-million-tonnage coke producers.

Source: www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)