Hebei: Promoting the Safe and Orderly Exit of Excess Steel Production Capacity
Release date:
2016-06-12
Recently, the Hebei Provincial Administration of Work Safety issued the “Notice on Strengthening Work Safety During the Capacity‑Reduction Phase in the Steel Industry,” stipulating that all relevant departments at every level across the province will, based on steel enterprises’ scale, current production conditions, major hazard sources, and whether they are subject to capacity‑reduction measures, provide tiered and categorized guidance and support to steel companies within their jurisdictions. The notice also calls for rigorous oversight to ensure that enterprises conduct thorough safety risk assessments and systematically identify and address potential accident hazards, thereby facilitating the safe and orderly exit of excess production capacity.
The notice stipulates that, for enterprises that have been shut down for an extended period, local safety supervision authorities shall conduct regular on-site inspections, promptly address any issues identified, and prevent such enterprises from resuming production without meeting the requisite safety standards, thereby averting workplace accidents.
For enterprises that operate intermittently, regulatory oversight must be strengthened. For those that genuinely comply with industrial policies and are not subject to capacity‑reduction measures, resumption of production shall be permitted only after the safety conditions have been verified as meeting the required standards by the safety supervision authorities at or above the county level. Any enterprise that resumes production without authorization shall be referred to the local government for closure and rectification.
For enterprises involved in the decommissioning of production facilities, local safety supervision authorities shall assist them in developing safe dismantling plans, urge them to convene experts to assess the feasibility of equipment‑removal schemes, and propose targeted preventive measures. Supervision and management during on‑site dismantling must be strengthened, with enterprises required to designate a dedicated on‑site safety officer. Particular attention should be paid to safety controls during the dismantling of blast furnaces, converters, and gas pipeline networks to ensure overall safety.
For enterprises ordered to suspend production for rectification, the local government shall designate relevant departments to assign dedicated personnel to station at the premises for oversight and inspection, ensuring strict compliance with the suspension order and preventing workplace safety accidents resulting from unauthorized resumption of production. Upon expiration of the rectification period, if an enterprise still fails to meet occupational safety standards, the local safety supervision authority shall recommend to the government that it be included in the scope of capacity‑reduction measures.
The notice stipulates that safety supervision and inspection authorities at all levels shall, based on the current state of workplace safety in the steel industry within their jurisdictions, organize regulatory and enforcement activities to ensure that enterprises comply with relevant laws and regulations on workplace safety, safeguard production safety amid the broader context of industrial restructuring in the steel sector, protect workers’ legitimate rights and interests in occupational safety, and facilitate the safe and orderly exit of excess capacity while promoting the stable development of steel producers.
All levels of safety supervision and inspection authorities, in conjunction with their annual enforcement plans, shall formulate special enforcement plans for capacity reduction in the steel industry. The scope of enforcement shall cover all steel enterprises within their jurisdictions, with a particular focus on verifying whether these enterprises meet the safety standards associated with capacity‑reduction efforts. For steel enterprises that fail to achieve at least Level 3 in workplace safety standardization, immediate orders shall be issued to suspend production for rectification. If such enterprises fail to implement corrective measures within six months or if the rectification does not meet the required standards, the safety regulatory authorities at the county level and above shall submit a request to the local government to order their lawful closure and exit from the market.
Organize and carry out technical assistance. Localities should, in light of their specific circumstances, convene relevant experts to conduct focused research and discussions on critical and challenging issues arising during the capacity‑reduction process—such as post‑campaign furnace management, safe furnace dismantling, and the control of high‑risk operations—thereby effectively addressing the limitations of individual enterprises’ technical capabilities. On this basis, they should develop practical and feasible measures for post‑campaign furnace management, safety‑oriented dismantling plans, and key control points for high‑risk tasks, thus ensuring the production safety of enterprises within their jurisdictions.