Top steelmaker Baowu Group vows output cuts, restructuring in H2
FILE PHOTO: A Baowu Steel Group sign is seen in Pudong district in Shanghai, China April 25, 2019. REUTERS/Aly Song
BEIJING : The world's biggest steel producer, China Baowu Steel Group, pledged to cut output in the second half of the year in response to Beijing's commitment to limit annual production in order to reduce carbon emissions.
The steel giant said late Monday that it would ensure efficiency and performance in the remainder of the year, while controlling production.
"This is a political issue with no room for bargaining, and it must be resolutely implemented," the producer said in a statement, citing its Chairman Chen Derong.
China promised no annual growth in 2021 crude steel production, although its output had jumped 11.8per cent year-on-year in the first six months.
Baowu Group, owned by China's state-owned Assets Supervision and Administration Commission of the State Council, churned out 115 million tonnes of the metal last year, which was 15per cent higher than the output in India, the world's second largest steel producer.
In the statement, Baowu also said it would push forward with its joint reorganisation to enhance its industry status and performance in the second half. Last month, the company was working with Shandong Iron and Steel Group on a "strategic restructuring".
The steelmaker added that internationalisation is vital to its survival and development.
(Reporting by Min Zhang and Shivani Singh; Editing by Amy Caren Daniel)
