Former Chinese steel giant resumes production

Shanxi Haixin Iron and Steel Group is expected to resume production early this year (2016) following on from its acquisition last September by Beijing Jian Long Group.

Once China’s largest steelmaker, Shanxi Haixin halted production in March 2014 due to excessive capacity in the domestic steel industry, a sluggish steel market climate and financial strain.

Prior to closure, Shanxi  had an annual capacity of 5.6Mt (metric tonnes) of iron, 6Mt of steel and 5.2Mt of steel products.

Since the takeover the company has been renamed and is now Shanxi Jian Long Iron and Steel Company.

The resumption of production will be in two stages. Building material products will restart early this year and once that business stabilises the company will resume production of steel board products, probably by the end of the year if the market situation improves.

Source: China Metals.