STEEL NEWS

Baowu Group promises to cut production and restructure

According to Reuters, the world's largest steel producer, China Baowu Steel Group, has pledged to cut production in the second half of the year in response to Beijing's commitment to cap annual production to cut carbon emissions.

The steel giant said last week that it will ensure efficiency and productivity for the remainder of the year by controlling production.

“This is a political issue that cannot be bargained for and must be resolutely pursued,” said Chairman Chen Derong.

China has not promised an annual increase in steel production in 2021, although in the first six months its production grew by 11.8% over the same period last year.

The Baowu Group, owned by China's State Assets Supervision and Management Commission under the State Council, produced 115 million tonnes of metal last year, up 15% on India, the world's second largest steel producer.

In a statement, Baowu also said it will push forward its joint reorganization to improve its industry status and performance in the second half. Last month, the company worked with the Shandong Iron and Steel Group on a "strategic restructuring."

The steelmaker added that internationalization is vital to his survival and development.