Chinese steel companies have been convicted of the illegal manufacture
The government of China announced the adoption of measures to punish the two companies. They were found in violation of program requirements to reduce capacity. The company was accused of illegal production.
One of the convicted companies has become Huada Steel, located in the Chinese province of Jiangsu. It was revealed that the plant produces steel on older machines. Thus, the melted steel does not meet the set quality standards.
Anfeng Steel — another implicated company, it is located in Hebei province. The charges relate to the fact that the company has implemented new capacity without the permission of the authorities. New blast furnace of the company has a fairly large size. Its volume is a thousand cubic meters. Furnace can smelt one hundred thousand tons. Now in the celestial virgin, the resolution on the removal of these units from the system. Since, recognition is inefficient for production.
The state Council of China adopted the decision on dismantle of illegally established units of both companies. In addition, the executives will be punished. Went and the provincial governors, where he worked as an illegal company. The authorities have rusticated, as responsible for control of the capacity reduction. In addition, Jiangsu province were punished by one hundred and eleven local officials. In Hebei province penalty was imposed on twenty-seven government representatives.
The head of the State Council of China Li Keqiang said: «Reducing overcapacity in the coal and steel industry is a priority for China. We intend to strictly deal with violators. This is the only way a country can improve economic efficiency. Huada Steel and Anfeng Steel was engaged in the manufacture of steel of low quality. And the cost of the product was below market. Low price was achieved by semi-legal employment of workers. Which also had a negative impact on the overall state of the economy.»
Illegal steel company, were sun-dried during the state inspection. The results of the event are given to understand that in Saran continue to operate an illegal enterprise. Punishment of companies intended to demonstrate all the steel companies that the government will crack down on violators.