Two of China's largest steel making companies have merged together to make a "steel giant". The merger is between Wuhon iron and steel group and Guangxi regional administration of state-owned assets. The first production line is set to be completed in 30 months, and fully operational in 50 months. At first the annual capacity will be 10 million tons but will eventually reach 30 million tons, at a cost of 30 billion U.S. dollars. This is yet another step in China's reorganization of its steel production. Similar cases have occurred in Shandong, Guandong, and Hebei provinces. The plant will also put out 5.4 million tons of iron per year. The new plant will be the largest iron and steel project in the West China Development Scheme. They plan to begin building the new plant in December in Fangchenggang which is a major port in Guangxi. The Chinese plan on moving all its steel plants to the cost to cut down on transportation costs.
I think this will ultimately be positive for Chinese labor production. This new steel plant will open up new jobs. The move to the coast also cuts transportation costs, which will allow for better wages for Chinese workers. I also think the competitiveness of all the new plants that are going to be moving to the cost will be positive for workers. The plants will want to make conditions and wages better than the other plants to attract workers. However, I am not sure of how much the Chinese government regulates wages and working conditions.
http://news.xinhuanet.com/english/2008-09/03/content_9765866.htm
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