The Chinese company Baowu Steel Group has announced that it will reduce steel production in the second half of this year to reduce greenhouse gas emissions. It is being pushed to do so by government commitment.
The largest global steel producer, China’s Baowu Steel Group, will have to cut production for the rest of this year. It responds to Beijing’s commitment to meet the 2021 greenhouse gas emissions limit. “It is a political matter with absolutely zero room for negotiation. We simply have to introduce production restrictions,” said Chen Derong, the company’s head in a press release.
China has promised to reduce steel production this year. However, in the first half of the year, on the other hand, there was a year-on-year growth of less than 12 percent. Thus, all that remains is to meet the commitment to achieve a reduction in steel production in the remaining six months.
Baowu Steel Group also said that it will use the second half of this year to accelerate the restructuring of its production, which should help reduce greenhouse gas emissions in the coming years, without significantly affecting steel production. Last year, the group produced about 115 million tons of this metal, which was 15 percent more than the production of the whole of India.
