An expert from KPMG has said the Chinese government was committed to shut some of the company’s less productive steel mills.
Peter Fung, chair of KPMG’s Global China Practice, has said that the social consequences were under consideration, but the question was when not if.
“I believe there will be a process but when that process starts is difficult to guess,’’ Fung told The Australian.
“Some of these plants are big plants. We all agree they need to be closed but how to deal with the social issues when that happens is something that needs a lot of discussion and negotiation at both the central and local government levels.
And earlier this month, the Wall Street Journal reported that China’s Ministry of Industry and Information Technology announced plans to cut the country’s current steelmaking capacity (of about 900 million tons) by 28.7 metric tons, the biggest cut in four years.