Baosteel is to retain 16Mt of steel capacity in Shanghai, although it was considering moving some capacity out of the city, said He Wenbo, general manager of the company.

Baosteel was aiming to build a technology innovation and R&D headquarters in Shanghai. In response to doubts about the steel producer’s expansion of production capacity in Zhanjiang city in Guangdong against the backdrop of surplus capacity facing the industry, He said Zhanjiang would just transfer some steel capacity from Shanghai and Guangzhou. Despite pressure from environmental protection and overcapacity, He remains confident in the steel industry and believes that there will be many ways to solve the current problems.

Source: China Metals e-mail [email protected]