Xin Guobin, vice minister of Ministry of Industry and Information: No new steel production capacity Electric furnace steel can not be coaxed

On the morning of January 30, the State Council Information Office held a press conference today, inviting Miao Wei, minister of industry and information technology, to introduce the development of the industrial communications industry in 2017. Also present at the press conference were Vice Minister of Industry and Information Technology Xin Guobin, Chief Engineer Zhang Feng.

       Xin Guobin said when answering a reporter's question that it is necessary to ensure that backward (steel) production capacity should be exhausted and strive to complete the goal of putting on line 150 million tons of crude steel capacity in the "Thirteenth Five-Year Plan" in advance. There are several main measures to be taken: First, to establish a long-term mechanism to combat strip steel and resolutely prevent it from resurging. In this regard, the determination of the Central Government is great and measures are also effective. Second, the disposal of "zombie business" as the starting point, unswervingly remove inefficient capacity. Third, we urge all localities to do a good job of replacing their production capacity, and forbid new steel production capacity. Fourth, we will intensify supervision and guidance to local authorities, decompose and implement this year's plan for going to steel capacity and ensure that we achieve our annual goals and tasks.

        In promoting the utilization of scrap, the next Ministry of Industry and Information Technology will, together with the relevant departments, step up policy research and guide the conversion of some of the long-run converter enterprises into electric furnace enterprises and promote the rational utilization of scrap resources without increasing their production capacity. Of course, this is a very policy-oriented and complex task requiring scientific planning, rational distribution and steady promotion. We must not rush into mass action.