On October 30, a reporter from Dahe Financial Cube learned that The General Office of the People’s Government of Henan Province recently issued the “Henan Province Steel Industry Quality Improvement Action Plan”,”Henan Province Coal Industry Quality Improvement Action Plan”,”Henan Province Nonferrous Metal Industry Quality Improvement Action Plan”,”Henan Province Food Industry Quality Improvement Action Plan”,”Henan Province Chemical Industry Quality Improvement Action Plan”,”Henan Province Building Materials Industry Quality Improvement Action Plan”,”Henan Province Light Industry Quality Improvement Action Plan” Notice of 10 action plans including the Action Plan for Quality Improvement and Upgrading of the Textile and Garment Industry of Henan Province, the Action Plan for Quality Improvement and Upgrading of the Pharmaceutical Industry of Henan Province, and the Action Plan for Quality Improvement and Upgrading of the Construction Machinery Industry of Henan Province.
The full text is as follows:
Action Plan for Quality Improvement and Upgrading of Steel Industry in Henan Province
In order to thoroughly implement the spirit of General Secretary * Xi Jinping’s important speech during his inspection in Henan, accelerate the quality improvement and upgrading of the steel industry, promote the construction of a modern industrial system to achieve remarkable results, and strive to build a strong manufacturing province, this action plan is formulated.

1. Overall requirements
   With the goal of building a modern steel industry system, we adhere to high-end, intelligent and green development, clear inefficient production capacity through market-oriented and legal methods, strive to support the best and eliminate the worst, carry out hierarchical evaluation, and promote production capacity to advantageous areas and advantageous enterprises Concentrate on creating a modern steel industry province with reasonable industrial layout, outstanding innovation capabilities, high-end product structure, and advanced process equipment.
   By the end of 2025, the province’s steel industry will have completed technical transformation or eliminated production capacity below the energy efficiency benchmark level, and the ultra-low emission transformation of enterprises will be basically completed. By 2027, the industrial layout will be further optimized, inefficient production capacity will be basically cleared, corporate profitability will be significantly improved, and innovation capabilities will be continuously enhanced. We will strive to reach 3-5 A-level enterprises with environmental performance, striving to become a leading standardized enterprise and a digital transformation benchmark factory, and the proportion of excellent special steel output in steel output will increase to about 50%.

2. Key tasks
   Optimize the industrial layout.
3. Promote the development of reduction and improvement of quality. Strictly control the total steel production capacity and the number of smelting enterprises, and implement regulation of crude steel output. Orderly guide the transfer of steel production capacity to places with sufficient resources and energy guarantees, strong environmental carrying capacity, large market demand, and good logistics conditions, and concentrate it to advantageous enterprises with high equipment levels, strong innovation capabilities, and high market share. Promote the integrated layout of steel, coking, and sintering, reduce the number of independent sintering, pelletizing and hot rolling enterprises and processes, improve production efficiency, strengthen cost control, and achieve the goal of “controlling total quantity, optimizing layout, and improving efficiency”.
4. Accelerate enterprise reorganization and integration. Support advantageous enterprises inside and outside the province to integrate steel resources in the province through capital increase and shareholding, cross-share swaps, and mixed ownership reform. Encourage small and medium-sized steel companies to innovate cooperation methods and implement reduction and reorganization. Guide short-process steelmaking companies to integrate scrap recycling companies, stabilize scrap supply channels, and improve the quality of scrap processing. Promote the coupled development of the steel industry with chemical, building materials, power and other industries, and accelerate the deep integration of multiple dimensions such as technology, resources, and markets. Support the integrated development of steel and nonferrous metals, and cultivate competitive comprehensive metallurgical enterprises.
5. Create core development areas. Based on the development foundation of various regions, strengthen upstream and downstream industry linkage, and promote differentiated development, professional coordination, and characteristic improvement of the steel industry according to local conditions. Improve and strengthen two key steel industry bases such as Anyang and Zhoukou, and refine six characteristic steel industry bases such as Jiyuan, Pingdingshan, Xinyang, Nanyang, Shangqiu and Xuchang, forming a “two key points and six characteristics” industrial development pattern.
   (2) Strengthen industrial regulation.
6. Carry out hierarchical evaluation of enterprises. Implement the national requirements for grading evaluation of steel enterprises, guide steel enterprises to achieve breakthroughs in safety, energy conservation, carbon reduction, environmental protection, quality, technology, etc., and actively strive to create leading and standardized enterprises. Strengthen safety, energy conservation, environmental protection, and quality constraints for enterprises that do not meet standards, and implement differentiated water price and electricity price policies.
7. Coordinate the regulation of energy and carbon indicators. Ensure energy consumption indicators for new construction, expansion and expansion of steel smelting projects in accordance with laws and regulations. In accordance with the requirements for the expansion of the national carbon market, eligible steel companies will be included in the scope of national carbon market management, the national carbon emissions trading management mechanism will be implemented, and carbon emission quota management will be implemented for key emission units in the steel industry.
8. Give full play to the role of financial regulation. Guide banking financial institutions to strengthen credit management in accordance with national industrial policies, strictly control the provision of credit support for projects that do not meet layout requirements and non-compliant production capacity replacement, and increase financial support for enterprise research and development and high-end, intelligent and green transformation. Strengthen financial services for corporate mergers and acquisitions, and do a good job in corporate debt restructuring and non-performing asset disposal. Implement the “reverse billing” system and break the bottleneck constraints on the recycling of renewable resources.
   (3) Promote the upgrading of product structure.
9. Strengthen the leadership of scientific and technological innovation. Improve the research and development capabilities of existing national and provincial steel industry major innovation platforms. Relying on the Provincial Advanced Steel Materials Industry Research Institute to undertake major scientific research projects. Strengthen the dominant position of enterprises in innovation and guide innovation elements to gather in enterprises. Vigorously develop mid-to-high-end products such as ultra-wide and ultra-thick plates, high-end stainless steel, cold-rolled oriented silicon steel, cold-rolled thin sheets, and ultra-special bar wire rods, and encourage enterprises to actively participate in ship steel, mold steel, high-end bearing steel, aerospace high-temperature alloy steel and Research and development of “stuck neck” special steel products such as high-strength stainless steel in the fields of nuclear power and energy equipment.
10. Create a characteristic product system. Deeply adjust the product structure, expand effective market supply, and build a product system with core competitiveness. Promote “high-quality construction steel”, increase the proportion of corrosion-resistant steel bars output, and improve the supply quality of section steel products. Accelerate the “optimization and specialization of industrial materials” and vigorously develop high-end high-quality steel bars and wires. Achieve “high-end plate products”, focus on automobiles, home appliances, ocean engineering, mechanical equipment and other fields, and increase the proportion of high-quality plate products. Promote the “specialization of seamless pipes”, increase the proportion of mid-to-high-end seamless pipes production, and enhance supporting pipe processing capabilities.

9. Improve product quality standards. Support industry associations and enterprises to give full play to their own advantages, lead and participate in the formulation and revision of international standards, national standards, industry standards, and group standards, and enhance the voice of the industry. Promote the upgrading of industrial quality, strive to improve the level of quality control in key links and key areas, carry out benchmarking and improvement actions, and use advanced standards to promote the quality and upgrading of the steel industry. Guide enterprises to establish brand awareness and continuously improve product quality.
10. Develop new business formats and new models. Adhere to the development direction of “differentiation, specialization, and customization”, encourage enterprises to deepen cooperation with downstream users, carry out joint research and development and supply chain co-construction, strengthen the technical reserve and R & D promotion of high-end advanced steel materials and new products, carry out large-scale customization, Provide full-life application service solutions, enhance the added value of steel products and services, promote the transformation of steel enterprises to “manufacturing + services”, and realize the transformation of ordinary steel suppliers into high-end material service providers.
11. Expand product application scenarios. Implement the first batch of support policies for new materials and increase the promotion and application of corporate products. Accelerate the promotion of high-performance steel products around application scenarios such as “good house” construction, urban renewal, large-span space buildings, automobiles and rail transit. In line with the trend of carbon peaking and carbon neutrality, we will increase the proportion of steel applications in the fields of wind power equipment and photovoltaic brackets, and further expand application scenarios in machinery manufacturing, petrochemical and other fields.
    (4) Accelerate the transformation of green intelligence.
12. Promote equipment upgrades and transformation. Support the upgrading and transformation of compliant production equipment in the list of smelting equipment in the steel industry, encourage the implementation of capacity replacement projects, and focus on equipping a batch of advanced smelting equipment that meets the restricted standards or above. Incorporate qualified equipment upgrade projects into the list of provincial key projects in a timely manner, solve problems encountered during the project promotion process in a timely manner, and accelerate the project construction progress.
13. Improve green and low-carbon levels. New, renovated and expanded steel smelting projects must reach the energy efficiency benchmark level, environmental protection performance level A level and safety production standardization level 2 or above, and main energy-using equipment must reach the advanced level of energy efficiency. Orderly guide the transformation of blast-converter long-process steelmaking into electric furnace short-process steelmaking and increase the proportion of electric furnace steelmaking. Promote steel enterprises to implement projects such as industrial energy conservation, water-saving renovation, comprehensive utilization of resources, and safety risk monitoring and early warning, accelerate the green transformation of production processes, carry out benchmarking and compliance activities for “leaders” in energy efficiency and water efficiency, and fully implement mandatory water use quota management system.
14. Vigorously develop renewable resources. Relying on the advantages of Changge’s national important scrap metal distribution center and Xuchang National Urban Mine Demonstration Base, we will expand the scale of the Changge Dazhou renewable resource recycling and trading market. Support Anyang, Zhoukou, Xuchang and other places to build national first-class renewable resource recycling bases, build a scrap resource recycling, processing and distribution system, promote the integrated development of scrap recycling, dismantling, processing, classification, and distribution, and strengthen the building of recycling capabilities.
15. Accelerate the transformation of numbers and intelligence into empowerment. Use big data, artificial intelligence and other technologies to strengthen the construction of smart factories (workshops) to achieve precise production control and coordination. Build an industrial Internet platform, deepen industrial chain collaboration, and comprehensively use intelligent equipment operation and maintenance, product traceability and other means to improve production efficiency, quality control level and supply chain response speed. Comprehensively promote digital applications around quality management, energy management and control, green and low-carbon, and safe production. Encourage enterprises to accelerate the automation transformation of key equipment, promote the digitalization of key links such as ironmaking, steel-making, and rolling, and improve the level of intrinsic safety.
    (5) Optimize the industrial ecology.
16. Strengthen policy support. Effectively give full play to the role of the provincial government’s green steel industry development fund and promote the implementation of major projects in the steel industry. Make full use of policy funds such as ultra-long-term special treasury bonds and investment within the central budget to plan, reserve and implement a number of key technology industrialization projects, equipment upgrading and transformation projects, etc. to support the transformation and development of the steel industry. Encourage steel companies to raise funds through targeted additional issuance, trust financing, project financing, lease financing, asset securitization, and pledge of intellectual property rights.
17. Guide industry self-discipline. Give full play to the role of steel industry associations, strengthen policy interpretation and publicity, form a good public opinion environment, guide enterprises to conscientiously implement national industrial policies, enhance awareness of social responsibility and industry self-discipline, avoid disorderly and vicious competition and low-level duplication of construction, and maintain the smooth operation of the industry. Regularly organize cooperation and exchanges, promptly study and judge the trends of the steel industry, and help enterprises improve their market adaptability.

3. Organizational guarantees
   The Provincial Development and Reform Commission, the Department of Industry and Information Technology must work with the Provincial Department of Ecology and Environment, the Department of Finance, the Department of Natural Resources, the Market Supervision Bureau, the Provincial Government State-owned Assets Supervision and Administration Commission and other departments, as well as relevant provincial municipal governments and the Jiyuan Demonstration Zone Management Committee to strengthen coordination and cooperation, form a joint force of work, and do a good job in situation scheduling, tracking and evaluation, experience summary and other work. The Provincial Development and Reform Commission should take the lead in planning major projects and seeking policy funds, and the Provincial Department of Industry and Information Technology should take the lead in replacing production capacity and standardizing announcements and declarations.