The central government is discussing plans to restrict steel production, force mills to move to coastal regions and get rid of inefficient equipment, Reuters reported, citing industry sources. Under the plan, China’s crude steel output would be limited to 500 million tons a year from 2011. This would not effect current production levels as total output for 2008 was 500.49 million tons, but it would remove surplus production capacity built up in recent years. The minimum size of blast furnaces would also be increased to 400 cubic meters from the current 300 cubic meters. The plan would require 40% of steel capacity to be located in coastal areas – up from the current 35% – putting producers closer to imported raw materials including iron ore and coking coal. Beijing would provide assistance for those workers who could not relocate to coastal areas.