China News Service, December 16th. According to the website of the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology revised the "Implementation Measures for Capacity Replacement in the Iron and Steel Industry" (Gongxin Ministry Original [2017] No. 337) and formed the "Implementation Measures for Capacity Replacement in the Iron and Steel Industry (Draft for Comment)" (Hereinafter referred to as "Draft for Solicitation of Comments"), the public is now soliciting opinions from all walks of life.
The draft for comments stated that it is strictly forbidden to increase the total steel production capacity in key areas for air pollution prevention and control.
The draft for comments pointed out that the construction of ironmaking and steelmaking capacity must implement capacity replacement respectively.
The number of production capacity withdrawals during the replacement process is determined in accordance with the number of capacity in the iron and steel industry smelting equipment list submitted by the State-owned Assets Supervision and Administration Commission of the State Council and the provincial people’s governments in 2016 to the State Council’s implementation plan for de-capacity reduction; for legal and compliant smelting equipment built in 2016 and later , The number of withdrawals from production capacity shall be verified in accordance with the "Capacity Accounting Sheet".
The amount of production capacity built during the replacement process is verified in accordance with the "Capacity Accounting Sheet".
Enterprises must perform capacity replacement procedures when building dephosphorization converters.
Construction of non-blast furnace ironmaking, vanadium extraction converters, rotary kiln-submerged arc furnace (RKEF) and other equipment, production capacity verification must be reported to the Ministry of Industry and Information Technology "one matter, one discussion".
The draft requires that it is strictly prohibited to increase the total steel production capacity in key areas for air pollution prevention and control.
Provinces (autonomous regions, municipalities) that have not completed the total steel production capacity control target shall not accept steel production capacity transferred from other regions.
The Yangtze River Economic Belt region prohibits new or expanded steel smelting projects outside the compliance zone.
The replacement ratio in key areas for air pollution prevention and control shall not be less than 1.5:1, and the replacement ratio in other areas shall not be less than 1.25:1.
In order to encourage corporate mergers and reorganizations and increase industry concentration, the compliant production capacity obtained after the completion of substantial mergers and reorganizations (realizing actual holdings and completing legal or legal person affiliation, equity relationships, articles of association, etc.) is used for project construction. The replacement ratio in key areas for pollution prevention and control can be no less than 1.25:1, and replacement in other areas can be no less than 1.1:1.