According to the requirement of the State Development and Reform Commission, Chongqing, one of China's directly governed cities decided to close 12 small obsolete steel mills.

    Now the work is moving forward smoothly and till August 20th 7 have been shut down, which owned steel capacity of 2 million tonnes. Chongqing Iron & Steel is working for consolidating the remaining five.

    In front of difficulties deriving from complicated situations of these to be closed mills as well as consideration of following unemployment, the local government made order to deal with the problems on the basis of social harmony and ensure of closing and washing out 400,000 tonnes and 365,000 tonnes of iron and steel smelting capacities as planned.