Restructuring looms for top 10 sectors

As part of its commitment to maintaining a vibrant and cohesive development strategy, the provincial government of Shandong has unveiled a far-reaching program aimed at stimulating 10 of its key industries.

Under the terms of the plan, the 10 industries - steel, automotive, shipbuilding, chemical, light industry, textiles, nonferrous metals, equipment manufacturing, electronic information and modern logistics - will undergo a major restructuring operation in order to ensure their ongoing competitiveness.

In terms of the steel industry, the local government masterplan sees a series of mergers and acquisitions culminating in the formation of one mega-company in the sector and between three and five smaller operators. The blueprint envisages that the restructuring will be completed by 2015 when production in the sector will top 50 million tones annually.