Chongqing Iron & Steel has put a three-million-tonne ceiling on its annual crude steel production capacity for the next two years after the central government unveiled measures to contain over-investment in low-end production lines.
At a press conference for the company's annual results, chairman Tang Minwei said it would focus on higher value-added downstream products.
'Unlike some companies which have set aggressive targets to expand to five million tonnes, six million tonnes or 10 million tonnes, we are not chasing capacity numbers,' he sad. 'We are after quality, specialty product, low-cost expansion.'
Premier Wen Jiabao last week said over-investment in low-technology and environmentally unfriendly steel projects would be banned.
Chongqing Iron & Steel last year said it would expand its crude steel production capacity to 3.5 million tonnes in five years. It produced 2.05 million tonnes last year and planned to produce 2.3 million tonnes this year.
Mr Tang said the proximity of the company's plant to Chongqing - it is only 18km from the city centre - also put limits on expansion due to pollution concerns.