The Tangshan Iron and Steel Group failed to comply with the mandatory 50 percent cut in steel production imposed by the local government, Futures Daily reported.
An editorial for that publication states that all three blast furnaces were melting pig iron when inspectors visited the plant on July 19, resulting in CEO Tangyin being detained.
As stated on Tangyin's official website, the company adheres to the concept of "improving enterprise efficiency, sharing wealth", realizing the idea of a scientific view of development, adopting a market strategy, adhering to the principle of "Efficiency determines sales, and sales determines production", and also strives to developing new grades of steel, reducing economic costs and developing an economic model based on energy conservation and environmental protection.
Steel production in China has hit record levels this year, with much of this increase coming from smaller factories with lower environmental compliance costs. The surge has sparked concerns that China's war on air pollution has eased as the economy slows.
Environmental officials are trying their best to show that production restrictions will be strictly enforced this year, and the steel sector is still their main target.
In June, authorities in Tangshan, China's largest steelmaking region, said they would impose production restrictions on local steel companies until August as part of the fight against smog.
