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The state council counselor, Mr. Xu Yifan led delegation to Shagang for visiting and researching

On the afternoon of September 8, the State Council counselor, Mr. Xu Yifan led delegation to Shagang for visiting and researching on the topic of “De-capacity in steel industry”, Mr. Gong Sheng, President and Executive Director of Board; Mr. He Chunsheng, Vice President, Executive Director and Vice Chairman of Board warmly received them.

Mr. Gong Sheng offered some relevant suggestions regarded to the De-capacity on metallurgical industry. He said that during the process of dissolving capacity we could clarify and concentrate on following issues: One is to clean up some business which still in poor profitability, low product quality and product quality cannot be guaranteed. Two is to shut down some enterprises those who seriously disturbed market order and raw material transport costs high, long-term serious losses and little hope of recovery declared Zombie Companies. Three is determined to clean up and closure the production capacity which has failed to get approved by the Ministry of Industry and Information Technology (MIIT). Four is to protect and develop advanced productivity, eliminate backward production capacity. Five is to allow and encourage enterprises to merger and reorganization of enterprises within the scope of the group into entire consideration. Six is to use the rule of law, market-oriented approach of eliminating backward production capacity, does not take the indicators assessed administrative instruction practices.

After listening to the report, Xu Yifan fully affirmed the efforts and progress on de-capacity in the steel industry of Shagang and Zhangjiagang City. He said this time he reached the grass-roots, especially deep into the production capacity of iron and steel enterprises was to understand the situation: First, is to research how the enterprise reduce excess capacity in the process; Second, he wanted to listen to the accurate ideas and proposals from enterprises, so that the State Council could summarized more reform measures for the development of enterprises and contribute to the development of China's iron and steel industry.

At the meeting, He Chunsheng made a report of the grass-roots level and capacity situation, Yonggang Group reported about de-capacity and resolving problems in the production process and related recommendations.