Tangshan-based Quingquan Iron and Steel company has filed for bankruptcy and liquidation in the People’s court of Fengnan district. In the application, the company has informed the court its inability to pay off debts, according to China Metallurgical News.
The steelmaker has an annual capacity of producing 1.5mn mt of iron, 1.5mn mt of steel, 600,000mt of rolled steel with an annual operating income of around CNY4bn.
The city of Tangshan in China has been trying to cut its excess steelmaking capacity to curb oversupply and pollution levels. As per media reports, mills in Tangshan have been asked to reduce steel production capacity by 10.07mn mt and iron-making capacity by 8.04mn mt by the end of 2020. The Chinese government also aims to bring the total number of steelmakers in the area to 30 from the present 40. Mills in Tangshan account for more than half of Hebei province’s steel and iron making capacity.