OREANDA-NEWS.  July 18, 2012. In order to improve structure adjustment of steel industry in Shanghai Baoshan area, Shanghai Municipal Government signed cooperation agreement with Baosteel Group. This marks that the work of improving structure adjustment of steel industry in Shanghai Baoshan area is officially launched, reported the press-centre of Baosteel. 

CPC Central Committee Politburo member and secretary of Shanghai Party Committee Yu Zhengsheng attended signing ceremony. Shanghai Deputy Party Secretary and mayor Han Zheng, vice chairman of the NDRC and head of the National Energy Administration Liu Tienan, vice minster of MIIT Su BO and vice chairman of state council SASAC Shao Ning attended ceremony and made a speech. Chairman of Baosteel Group Co., Ltd. Xu Lejiang introduced related situation of industry adjustment. Standing Committee of the CPC Shanghai Municipal Committee, vice mayor Ai Baojun and General manger of Baosteel Group Co., Ltd represented both parties to sign. Standing Committee of the CPC Shanghai Municipal Committee and secretary of Shanghai Municipal Committee of the CPC Yin Hong attended signing ceremony. Vice chairman of Baosteel Group Co., Ltd and party secretary hosted the signing ceremony.

Former chairperson of Baosteel Group Co., Ltd Xie Qihua, General manager of Baosteel , Ma Guoqiang, deputy manager of Baosteel Group Co., Ltd Zhou Zhuping and old leaders of Baosteel such as Xu Daquan, Li Shiqi and Yin Hao etc, related leader of national department, related leader of Shanghai government, leader of Baoshan district and related person in charge of department of Baosteel Group Co., Ltd attended signing ceremony.

According to the introduction, this adjustment is based on the requirement of national steel industry plan and energy saving, insists on general policy of " driven by innovation,transformation  development", in principle of " output reduction, efficiency increase, adjustment and development", aiming at beneficial to  national steel industry development strategy, Shanghai transformation & development and increasing industrial competitiveness for Baosteel. Steel industry adjustment will be implemented in Shanghai Baoshan area to improve energy saving, fusion of industry and city. The adjustment plan is focused on enterprise in Wusong industry area of Shanghai Baoshan district and production base in Luojing area. After adjustment, it will be the strategic emerging industries-development base for new material, energy saving and environment protection. After the mission of adjustment is finished, estimated total quantity of iron capacity in Shanghai area will be reduced by 5.8 million tons, steel capacity is about 6.6 million tons, correspondingly reduce 3 million tons energy consumption of coal.   

Xu Lejinag introduced the situation of industry structure adjustment. He said structure adjustment of steel industry in Shanghai Baoshan area and upgrade development is Baosteel's important strategy of "12th Five Year Plan" transformation upgrading Through Shanghai reduction adjustment, not only  to realize Baosteel's strategic layout of "Two corners One side", but also to enhance proportion of high class products and manufacture ability in Shanghai area through extending industry chain, establish premium products base of World ahead flat carbon steel.

At the same time, focus on establish research base and new industries such as new material, energy saving environmental protection etc and service industries such as financial service, information service and technical service etc. He pointed out that signing cooperation agreement marks Shanghai and Baosteel obtain a consensus and staged result for structure adjustment of steel industry in Shanghai Baoshan area during common efforts, and also marks the work of structure adjustment of steel industry in Shanghai Baoshan area is officially launched. We firmly believe it will realize expected target under the correct leadership of nation and Shanghai. 

Shao Ning pointed out in the speech that structure adjustment of steel industry in Shanghai Baoshan area will effectively promote regional economic development, people's livelihood and improvement of environment, promotion of enterprise competitiveness etc. The adjustment for Baosteel is from national strategy and overall situation of Shanghai long-term development, it has function of model and demonstration. We should smooth lyand orderly carry out the adjustment work. This adjustment is a great event for Baosteel, also for Shanghai and nationwide. The Central SASAC will fully support Baosteel adjust industry structure in Shanghai and nationwide, let structure adjustment of steel industry in Shanghai Baoshan area become a new starting point, promote transform of economy develop method and adjustment work of industry structure, to  welcome  18TH national congress of the CPC with excellent grades.

Su Bo indicated in the speech that MIIT will support development of Baosteel and hope Baosteel continue play a leading role in steel industry, by combining relocation, modification and upgrade of steel industry in Shanghai area, on the base of enhance major works of steel, extend industry chain, develop new material of steel, bring out new premium steel. According to nationwide, steel industry need continue optimize structure, through extend industry chain,Baosteel and some large enterprises need play a role in structure adjustment, accelerate elimination of outdated capacity and replacement of advanced capacity, increase capacity for independent innovation, implement go global strategy in an organized way, grow international large scale steel enterprise group, realize transform of Chinese steel industry from big to large.

Liu Tienan indicated in the speech that the signature of agreement marks Shanghai's transform development and structure adjustment entering a new stage, it will play an important role in accelerating development of advanced manufacturing business, transform development of productivity service and optimize city function etc, and it will also have an important impact in national industry upgrade and layout adjustment. We hope Baosteel grab the opportunity, to implement the content of agreement, continue to increase innovation ability, complete layout adjustment target approved by nation. NDRC will support and serve construction of Shanghai "Four centers" and transform development as usual, support and serve Baosteel's structure adjustment work.

Han Zheng indicated in the speech that Shanghai government andBaosteel sign together to promote structure adjustment of steel industry in Shanghai Baoshan area, it implement the scientific concept of development and promote industry adjustment, it is a good event benefit to nation, Shanghai andBaosteel. Implement this adjustment, it benefits to promote transform of economy develop method, accelerate modification of manufacturing business and development of steel industry and promote layout and adjustment of key industry productivity; it benefits to promote innovation drive in Shanghai, transform development, promote structure adjustment and energy saving and improve environment of city; it also benefits to Baosteel to expand development space, increase industry competitiveness, realize long term steady and continuous development. Shanghai government and Baoshan district government will create condition and fully support in policy measures, fully cooperate with Baosteel to do the related works.