(CBN Global) March 23 -- The northern Chinese province of Hebei, a national center of steelmaking, faces the immense challenge of trying to find work for 200,000 redundant steelworkers amid streamlining aimed at reducing overcapacity, Deputy Governor Zhang Jiehui said in a speech.
Hebei has cut iron production by 33.91 million tons and steel output by 41.06 million tons, he said. That is equivalent to closing two plants the size of Angang Steel Ltd., the nation's third-largest steelmaker.
"Companies with de-capacity activities are not entirely eliminated," Mr. Zhang said. Some "95 percent or more of them just shut down some capacity, transferring those who lost their jobs to other internal posts."
The province plans to close 60 percent of its steelmakers by 2020, Governor Zhang Qingwei said on March 8. In addition, Hebei is to shed output capacity of 60 million tons of iron and steel, 60 million tons of cement, 40 million tons of coal and 30 million boxes of glass by 2017.