The government will allocate 5 billion yuan (US$821 million) to help steel mills reduce excess capacity and save energy, National Business Daily reported Friday, citing Zhu Jimin, vice chairman of the China Iron and Steel Association. Also, it will allow foreigners to take controlling stakes in steel companies, the report said. The incentives cover Beijing, Tianjin and Hebei province. China’s steel sector is suffering from overcapacity as well as structural and regional overcapacity, the report quoted Zhu as saying.
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