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New steel capacity to outpace plant closures

Despite China’s plans to cut steel production in the hopes of reducing pollution this year, new steel capacity will greatly surpass the number of plants closed, Financial Times reported. About 30 million tons of new steel capacity across the country is still under construction, double the 15 million tons of cuts pledged for 2014 by Hebei province, the industrial heartland surrounding Beijing which accounts for about a quarter of Chinese steel capacity. Cuts to steel capacity are hoped to reduce pollution in northern China, which just experienced several days of severe smog deemed by the WHO as a “crisis.”

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