Tangshan Party Secretary Jiao Yanlong: Traditional industries such as steel will be reborn

“Tangshan is transforming from a big steel market to a strong steel city. Now that the production capacity has been reduced, and the benefits will go up in three years, the traditional industry represented by steel will be “reborn.” On the 4th, the National People’s Congress, Tangshan Municipal Committee of Hebei Province Secretary Jiao Yanlong said in an interview with the reporter.

As the cradle of modern industry, Tangshan has created the first standard gauge railway and the first steam locomotive in China's modern industrial history. Jiao Yanlong said that after the reform and opening up, in the initial and intermediate stages of industrialization development, Tangshan played an important role in accelerating the development of iron ore and coal resources. Over the years, the economic growth rate has maintained double-digit growth, and the total economic volume is ranked first in Hebei.

Since the beginning of the new century, Hebei's steel output has exceeded 100 million tons, surpassing Germany, the United States and Japan. Some people joked that the world's steel "China's first, Hebei's second, Japan's third." However, with the slowdown of China's economic growth, the general trend of industrial transformation and upgrading, and environmental protection pressure, Hebei has stepped into a “crossroad” to solve overcapacity and seek green development. Tangshan, the heavy chemical industry city with the largest steel output in Hebei Province, has suffered from the “freezing period” that has been rare for many years in the past year. It faces the arduous task of reducing excess capacity and adjusting the transformation and upgrading of traditional industrial structure.

Jiao Yanlong said that according to the requirements, Tangshan will reduce the iron-making capacity by 28 million tons, the steel-making capacity of 40 million tons, and reduce the coal consumption by more than 25 million tons between 2012 and 2017. "This will definitely have an impact on the current economic growth, but it must be done with a bite. We all know each other and have a firm confidence."

"It is estimated that Tangshan's GDP growth rate will be around 5% this year, which is not available for many years." Jiao Yanlong said that it will usually remain at 8%-10% three or four years ago, and the economic growth rate will definitely fall during the transition period. “Proactively lowering is for sustainable and long-term development.”

"There is a lot of pressure, but there are difficulties to overcome." Jiao Yanlong said that in the past two years, Tangshan has vigorously reduced excess capacity, and reduced the ironmaking capacity by 8.27 million tons, steelmaking more than 20 million tons, and coal-fired boilers. Centralized heating, last year the city cleared more than half of the small coal-fired boilers, which will be cleaned up this year. “This has also brought about an improvement in air quality. Last year, the overall quality of the environment improved. PM2.5 fell by more than 12% and sulfur dioxide emissions fell by 36%.”

He said that Tangshan urgently needs to transform and upgrade and adjust its structure. The integration of Beijing-Tianjin-Hebei is a huge opportunity for Tangshan. Tangshan is adjacent to the Beijing-Tianjin one-hour traffic circle. It is a large-scale city in Hebei Province with relatively perfect service functions. With these two advantages, it can attract scientific and technological talents to develop high-tech SMEs.

In order to support these SMEs and the masses to start their own businesses, the government has guided the use of financial funds to integrate various funds to set up equity investment funds and venture capital funds. "This will become an important economic growth point under the new normal."

As a large city in the northeast of Beijing, Tianjin and Hebei, Jiao Yanlong said that Tangshan should develop into a central city in the northeast in the integration, stimulating local economic development and radiating other cities. With the advantage of the coastal port of Tangshan, the development of the past resources dependence to the coastal development, accelerate the transformation of traditional industries, and develop new industries for deep processing of the steel industry.

Tangshan Caofeidian, which is less than 200 kilometers away from Beijing, is well known to the outside world for its relocation. After the Shougang moved, the newly-built steel company Shougang Jingtang Iron and Steel Co., Ltd. realized the transformation and upgrading of “reborn”. Last year, under the grim situation of the global steel industry, it turned losses into profit. Jiao Yanlong said that "the production technology is the most advanced, basically achieving recycling production and close to zero emissions."

In July last year, Beijing and Hebei Province signed a framework agreement to jointly build Caofeidian. The agreement proposes that the two cities will cooperate with each other to jointly build Caofeidian into a strategic strategic zone and a collaborative development demonstration zone. This means that Caofeidian will become an important fulcrum for the coordinated development of Beijing-Tianjin-Hebei, and an important carrying place for the capital industry to move out.

Jiao Yanlong said that in the coordinated development of Beijing-Tianjin-Hebei, Caofeidian is a new industrialization base in the Bohai Rim region, which is most suitable for the port-based industry. It is an important economic growth point in Tangshan and an important part of the development of Beijing-Tianjin-Hebei, especially in Northeast Asia. The window will also play a role in the Beijing-Tianjin-Hebei and even Shanxi-Mongolian.


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