Reply to Recommendation No. 305 of the First Session of the 14th People's Congress of the Autonomous Region

Representative of Wei Xuanshi:

Your "Proposal on Promoting the Integration and Reorganization of Iron and Steel Enterprises in the Zone with Baotou Steel as the Main Body to Improve the Concentration of the Iron and Steel Industry" (No. 305) has been received. After consulting with the State-owned Assets Supervision and Administration Commission of the Autonomous Region and the Energy Bureau, the reply is as follows.

The iron and steel industry is an important basic industry of the national economy, an important support for building a modern and powerful country, and an important field for achieving green and low-carbon development. In recent years, our department, together with relevant departments, has further promoted the supply-side structural reform of the steel industry, achieved remarkable results in resolving excess steel capacity, made the industrial structure more reasonable, and made positive progress in green and intelligent development. The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Ecology and Environment issued the Guiding Opinions on Promoting the High-quality Development of the Iron and Steel Industry (Ministry of Industry and Information Technology Lianyuan [2022] No. 6), focusing on promoting the merger and reorganization of enterprises and enhancing industrial concentration. At present, the industrial concentration of the iron and steel industry in our region is still low, and it is necessary to accelerate the merger and reorganization, improve the industrial concentration, enhance the competitive advantage, and promote the orderly and healthy development of the steel industry.

1. AboutIn terms of capacity replacement and energy supply, we will support the integration and reorganization of iron and steel enterprises in the region with Baotou Steel as the leading enterprise, and improve the concentration of the iron and steel industry in the region

One isThe party committee and government of the autonomous region attach great importance to the reform and development of Baotou Iron and Steel Group. At the Fifth Plenary Session of the 11th Party Committee of the Autonomous Region and the Economic Work Conference of the Autonomous Region, Secretary Sun Shaocheng proposed that "to vigorously promote the reform and development of state-owned enterprises in the region, Baotou Steel has the ability and conditions to further expand and strengthen." At the on-site office meeting of Baotou Iron and Steel Group, Chairman Wang Lixia proposed that "it is of great significance to do a good job in Baotou Steel, and the development of Baotou Iron and Steel should not only be viewed from an economic point of view, but also from a political point of view, and the strength of the whole region should be used to promote the high-quality development of Baotou Iron and Steel Group". The 69th meeting of the Standing Committee of the 11th Party Committee of the Autonomous Region deliberated and approved the establishment of a leading group to promote the high-quality development of Baotou Steel Group. On February 9, the first plenary meeting of the leading group for promoting the high-quality development of Baotou Iron and Steel Group was held, and the "Autonomous Region to Promote the High-quality Development of Baotou Iron and Steel Group Task List and Division of Labor Arrangement" was reviewed and approved, and the specific content of supporting Baotou Iron and Steel to take the lead in restructuring and integrating small iron and steel enterprises in Baotou and improving the concentration of regional iron and steel industry was arranged. Focusing on the implementation of the state-owned capital layout and structural adjustment plan of the autonomous region, the SASAC of the autonomous region thoroughly implements the deployment and requirements of the party committee and government of the autonomous region to promote the high-quality development of Baotou Iron and Steel, coordinates all parties to increase the policy support of project funds in promoting Baotou Iron and Steel Group to lead the optimization and upgrading of the iron and steel industry, and enhances the market competitiveness and guarantee ability of Baotou Iron and Steel Group to provide high-quality steel in the major infrastructure construction of the autonomous region.

The second isAccelerate the integration and withdrawal of restricted steel production capacity. In 2021, our department issued the "Notice on Printing and Distributing the Plan for Eliminating Backwardness and Resolving Excess Capacity" (Nei Gong Xin Ye Jian Gong Zi [2021] No. 85), requiring all leagues and cities to follow the "Inner Mongolia Autonomous Region Development and Reform Commission, Industry and Information Technology Department and Energy Bureau on Ensuring the Completion of the "14th Five-Year Plan" Energy Consumption Dual Control Target Several Safeguard Measures (Nei Fa Gai Huan Zi Zi [2021] No. 209) and the "Inner Mongolia Autonomous Region Department of Industry and Information Technology on Accelerating the Elimination of Backward and Resolving Excess Capacity and Implementing the Energy Consumption Dual Control Target Task" (Nei Gong Xin Ye Jian Gong Zi [ 2021] No. 75), pay close attention to the formulation of key industries such as steel, ferroalloy, calcium carbide, coke, graphite electrode integration and withdrawal work plan, strictly implement energy conservation, environmental protection, quality, safety technology and other relevant laws and regulations, and eliminate the backward production technology and production equipment of the ferroalloy industry that do not meet the requirements of industrial policy and green and low-carbon transformation and development in accordance with laws and regulations. Among them, the steel industry involves 9 enterprises, 11 blast furnaces with a production capacity of 6.65 million tons, and 12 converters with a capacity of 6.2 million tons, which are required to complete the integration and exit by the end of 2023. At present, 1 500m³ blast furnace of Chifeng Yuanlian Iron and Steel Company, 1 616m³ blast furnace and 1 503m³ blast furnace of Ulanhot Iron and Steel have been shut down and withdrawn. Jiyu Iron and Steel and Deshun Special Steel have completed the merger and reorganization, Yaxin Longshun Special Steel and Baoxin Special Steel are discussing cooperation, Zhongtang Special Steel plans to merge Ningcheng Xinma Casting Company, and the capacity replacement plan of Baotou Iron and Steel part of the converter equipment upgrading project has been publicized. The 1# blast furnace capacity of Baotou Iron and Steel Wanteng Iron and Steel Company is 1200 cubic meters, and it is planned to transfer out the list of restricted enterprises (equipment).

The third isEnergy supply. In accordance with the task deployment and requirements of Chairman Wang Lixia and the working group of the Autonomous Region Leading Group for Promoting the High-quality Development of Baotou Steel, the Energy Bureau of the Autonomous Region has provided support to Baotou Iron and Steel Group in terms of new energy indicators, direct supply of green electricity and green certificate trading, helping to solve the problem of green development, steadily promoting the achievement of the "double carbon" goal, and improving the efficiency of enterprises. Since 2021, Baotou Steel has actively promoted the construction of new energy projects, and at present, a total of 47,000 kilowatts of new energy projects have been completed and approved in the main plant area of Baotou Steel. In November 2022, the Energy Bureau of the Autonomous Region proposed to build a 600 MW wind power new energy project with the consent of the power grid company, and supply power to Baotou Steel in the form of a special line. At the same time, 400 MW of photovoltaic power will be built in the tailings pond to directly supply the new load of Baotou Steel; The direct supply of green electricity can replace 2.906 billion kWh of on-grid thermal power, which can save 500 million yuan in electricity costs annually based on the new energy electricity price of 0.3 yuan/kWh. The method of "direct supply of green electricity + green certificate trading substitution" can reduce energy consumption by 1.86 million tons of standard coal (equivalent value) and carbon emissions by 2.57 million tons for Baotou Steel, accelerate the certification of low-carbon and zero-carbon products of Baotou Steel, and reduce the impact of carbon tariffs on the production and operation of Baotou Steel. At present, the Energy Bureau of the Autonomous Region is guiding and helping Baotou Iron and Steel Group to carry out the preparation of reports on 600,000 kilowatts of wind power and green power substitution and 400,000 kilowatts of photovoltaic marketization projects in tailings ponds, and the Energy Bureau will actively cooperate with the State-owned Assets Supervision and Administration Commission of the Autonomous Region and the Baotou Municipal Government to do a good job in promoting the relevant work. After the plan is mature, it will organize expert review and report to the autonomous region government for approval, and Baotou Steel Group can carry out the project construction work as soon as possible after the approval.

2. On the issue of supporting iron and steel enterprises in the region to directly supply high-quality steel for major new energy and infrastructure projects at the national and autonomous region levels in the region

Our department, together with relevant departments, will timely transmit the demand for steel and other materials needed for key projects in the region to the iron and steel enterprises in the region, encourage major new energy and infrastructure projects in the region to purchase high-quality steel in our region nearby, and promote long-term communication and linkage between the two sides to achieve mutual benefit and win-win results.

In the next step, our department will work with relevant departments to continue to promote the implementation of mergers and acquisitions in the steel industry with Baotou Iron and Steel as the main body in combination with the requirements of the autonomous region on promoting the high-quality development of Baotou Steel, and support mergers and acquisitions projects in combination with relevant policies, so as to increase efforts to improve industrial concentration and promote high-quality development.

Thank you for your concern and support for industrial and information work.

August 16, 2023

Issued by: Wang Jinbao

Respondent: Zhu Liang

Contact number: 0471-4826494