Steel Maker's Economic Transition: Development balances environmental needs, economic growth

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China's northern regions have long been the nation's industrial heartland. But heavy industries like iron and steel are highly polluting. Now, many plants in the region are looking to clean up their act, as planners seek to balance development with environmental protection. CGTN's Ning Hong went to Hebei Province, to find out more.

China's fast-developing economy has left parts of the environment polluted and it's especially seen in regions with heavy industries, such as iron and steel.

While many factories and plants are being shut down, the remaining ones are undergoing a hard transition.

Tangsteel is the largest company in Hebei Province's main iron and steel production base. As the man responsible for balancing energy needs with environmental protection, Liu Guoliang is feeling the pressure.

LIU GUOLIANG, VICE DIRECTOR ENERGY & ENVIRONMENTAL PROTECTION DEPARTMENT, TANGSTEEL "Since 2017, we've invested one billion yuan in modifications to reach our ultra-low emissions target."

The result has been quite effective, reducing major pollutant emissions by 4,000 tons. Adopting new technology is a major plus for many traditional industries in northern China. This is HBIS Group's most advanced production line. Built in 2015, it makes steel for automobiles.

WANG YUNGE, DEPUTY DIRECTOR TECHNICAL CENTER, TANGSTEEL "Apart from raising the quality of our products, we are also participating in the design process of auto manufacturing. It helps us to win more high-end customers."

The shift is winning the company more global-leading manufacturers, including some new energy automakers. 70 percent of its products are high value-added ones such as steel for cars and home appliances.

LI YIREN, STRATEGIC DIRECTOR PRESIDENT OF STRATEGY INSTITUTE, HBIS GROUP "In the past ten years, we've focused on high-end customers and have been upgrading our products and services. This is also an adjustment to meet the requirements for iron and steel material as the industrialization develops in China."

The transition of conventional industries is a key task in rebuilding the local economy. In 2018, Hebei Province invested over 300 billion yuan, about 43.5 billion US dollars in the transition of nine major traditional industries, from iron and steel to the petrochemical industry.