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China's ferroalloy industry process equipment technology is backward. The statistics of the Industry and Development Department of the National Development and Reform Commission show that among the existing production equipment, 26 electric furnaces of 25,000 kVA and above are eligible for new project access conditions, with a production capacity of 810,000 tons, accounting for 4.1% of the production capacity of electric furnaces. 1913 electric furnaces from 5000 kVA (including) to 25,000 kVA, with a production capacity of 15.32 million tons, accounting for 77.3% of the production capacity of electric furnaces; 588 electric furnaces with a capacity of 3200 kVA to 5000 kVA, with a production capacity of 2.56 million tons It accounts for 12.9% of the production capacity of electric furnaces; 538 electric furnaces of 3200 kVA and below, with a production capacity of 1.14 million tons, accounting for 5.7% of the production capacity of electric furnaces. According to the industrial policy, there are still about 1.6 million tons of backward electric furnace production capacity, which is 8.1% of the total production capacity of electric furnaces. Among them, 199 electric furnaces below 3,200 kVA and above 5,000 kVA should be eliminated before the end of 2005, with a production capacity of 980,000 tons; 321 electric furnaces of 3,200 kVA and below should be eliminated immediately, with a production capacity of 620,000 tons.
China Ferroalloy Capacity and Production Equipment Overview
Chinese iron alloy has a serious surplus production capacity. According to the statistics of the Industry Department of the National Development and Reform Commission, as of September 2005, China had a total of 1,570 ferroalloy production enterprises with a production capacity of 22.13 million tons. The average operating rate of enterprises in the whole industry was only about 40%. In some places, the operating rate was only 30%, and the production capacity was seriously overcapacity. Moreover, the capacity of projects under construction is still 1.61 million tons. The concentration of China's ferroalloy industry is low. Although a number of small enterprises have been shut down in recent years, the number of enterprises and the small scale have not been fundamentally changed. At present, there are 28 enterprises with a production capacity of over 100,000 tons and a production capacity of 4.7 million tons, accounting for 1.8% and 21.2% of the total number of enterprises and total production capacity respectively. There are as many as 787 small enterprises with a production capacity of less than 10,000 tons. 4.05 million tons, accounting for 50.1% and 18.3% of the total number of enterprises and total production capacity, respectively. The dust emitted from the ferroalloy production process pollutes the environment. Some enterprises neglect the construction of environmental protection facilities. According to the preliminary statistics of the Industry and Development Department of the National Development and Reform Commission, the current ferroalloy environmental protection compliance enterprises account for 31% of the national enterprises, and the task of pollution control and rectification is very heavy.