Shanghai: Chinese steel giant Baosteel Group signed an agreement with Shanghai government on July 4 to promote the adjustment of the group’s industrial structure, in a move that will have very big implications for dry bulk trading patterns.
Under the agreement, Baosteel will move 30 percent of its capacity which is about 5.8m tonnes of iron production capacity and 6.6m tonnes of steel production capacity to plants in south China's Guangdong province and west China's Xinjiang Uygur autonomous region by 2017.
"The partial relocation is a self-initiated adjustment and also a coordinated transformation between the city, industry and enterprise," said Xu Lejiang, Baosteel's chairman.
Pollution is also a consideration; the move will reduce 3m tonnes of coal consumption in Shanghai. [05/07/12]