What can save 11 Chinese metallurgical enterprises from closing?

On Tuesday, December 18, the Ministry of Industry of China announced that it would exclude 11 metallurgical firms from the list of qualified enterprises, effectively prohibiting them to work, and ordered another 17 companies to eliminate environmental violations.

China seeks to optimize its surplus steel sector, which currently has about 908 million tons of production capacity per year, as well as to improve work efficiency and environmental standards.

Companies at risk include Xuzhou Dongya Iron and Steel, Guangdsong Century Tsingshan Nickel Industry Co., Jiangsu Shagang Group, a division of China Baowu Group, the largest steel producer, and a subsidiary of the HBIS Group in the key steel center of Handan.

Companies must register by January 16, 2019 any objections to delisting; otherwise, they will be prohibited from working after this date.

Source: REUTERS