Part 3

Changing industrial locationHow and why does it change over space and time?

3.3 How has the location of

the iron and steel
industry in China
changed over time?
Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

The manufacturing system of the iron and

Inputs
Manufacturing processes
steel
industry
Physical inputs
1 Raw materials, including
coal, iron ore/scrap iron and
steel, and limestone
2 Land
Cultural inputs
1 Power supply
2 Capital
3 Labour
4 Technology
5 Transport
6 Government policies
7 Management
8 Market

Cash

Oxford University Press 2009

Iron ore/scrap
iron and steel,
coal and
limestone

Molten
iron

Slag

Iron making

Molten
iron
Steel making

Casting

Rolling and
shaping

Outputs
Market

Finished products
(example)
1 Steel tubes and pipes
2 Steel sheets

Waste
1 Hot water
2 Slag

Part 3

Changing industrial locationHow and why does it change over space and time?

What are the factors affecting the location

of iron
and
steel
works?
Operation factors
Socio-economic factors
Government policies (offering grants
and subsidies)
Large capital
Agglomeration (able to benefit from
agglomeration economies)
Advanced technology and innovation,
dependent on automation
Site factors
Extensive flat land
Communication systems: By rail or by
sea
Oxford University Press 2009

Raw materials: Iron ore/scrap

iron and steel, coal and
limestone
Power: A large amount of coal
Skilled labour
Market: Large cities and
industrial centres
Management
Clients (industries that use
steel products)

Part 3

Oxford University Press 2009

Changing industrial locationHow and why does it change over space and time?

Part 3

Changing industrial locationHow and why does it change over space and time?

How important is the iron and steel

The iron andin
steel
industry is known as the backbone of all
industry
China?

industry as it provides basic _____________

raw materials for many other
industries.
Do you know what
Iron
andrank
steelin
Chinas
industry
is very
the world
is in
important
to
terms
of steel
China.
production?

A pile of steel bars

Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

How important is the iron and steel

industry in China?
World total: 1,344 million tonnes

China is the largest steel

producer and consumer in the
world. In 2007, it makes up about
_____%
of the global crude steel
36
production.

Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

How important is the iron and steel

industry
in China?
Crude
steel production
in China, 1955-2007
In the 2000s, fast
growth has taken
place.the
After
the
1980s,
Before the 1980s, the
growth of
has
been
production
crude
up.
steel speeding
was growing
very slowly.

Source: China Statistical Yearbooks

Oxford University Press 2009

Why do such
changes
occur?

Part 3

Changing industrial locationHow and why does it change over space and time?

What is the spatial distribution of the iron

and steel industry in China?
After decades of development, large
numbers of iron and steel plants have
been scattered over the country

Many of the iron and steel

firms are
( small
/ big )
After several
rounds
of merging
and ( efficient
/
and regrouping,
five major
iron and
inefficient
steel centres
have) developed
Major iron and steel centres in China
Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

How has the location of Chinas iron and

steel industry changed over time?
Since the 1950s, there
have been two stages
of development in the
iron and steel industry
in China.

Stage 1:
Inland shift of industries
(early 1950s to late 1970s)

Stage 2:
Economic reform period
(1980s and the early 2000s)

Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Why do some iron and steel plants remain

in their original locations?
Have you noticed
Why does
which major iron and
Angang
continue
steel centre
thrives
to operate
throughout
the
________
inat the
Angang
same
location?
period
from the
Liaoning.
1950s to present?

Reasons:

Building an iron and steel

works is costly.
It would be a waste if the
plant does not operate.
Closing down the plant
would cause unemployment
and ( lower / higher ) tax
revenue in the region.

Industrial _______
inertia
Oxford University Press 2009

It would adversely affect

other related industries.

Part 3

Changing industrial locationHow and why does it change over space and time?

How has the location of Chinas iron and

steel
industry
changed over time?
To
conclude

Will there be
further changes in
the location
factors of the iron
and steel
industry?

Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Will there be further changes in the

location
factors? policies
1
Government
The influence of the
_______________
economic market has
become more important.
Local governments have
tried to provide favourable
policies to the iron and steel
enterprises. They also help
the enterprises in loaning
and funding, land renting
approvals and taxes.
Oxford University Press 2009

During the two stages

in the development
However,
in recent of
the iron
and steel
years,
the central
industry,
influence
control
on the
industrial
ofand
the planning
central
policies
government
has been
has
been reduced.
dominant.

Part 3

Changing industrial locationHow and why does it change over space and time?

Will there be further changes in the

location
2
Rawfactors?
materials and power
The production of iron
ore and coal cannot
meet the rapid growth
of the industry.
China has to rely on
imported iron ore and
coal because of
shortage of raw
materials and power.
Shortage of power
has caused
temporary blackouts
in many areas in east
China.
Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Will there be further changes in the

location
factors?
3
Transport
Low railway capacity
has resulted in
imported iron ore piling
up in the main
harbours.

Rail transport (Credit: Panorama Stock Photo Co. Ltd.)

Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Will there be further changes in the

location
factors?
3
Transport
All of the major iron and
steel centres are located
at or north of the Chang
Jiang
Transporting
iron and steel
products
requires high
transport
costs

Places south of the

Chang Jiang are
undergoing a fast pace of
economic development

Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Will there be further changes in the

location
factors?
4
Market
As economic
development in
Central and West
China increases,
there will be
increasing
demand for iron
and steel
products in these
regions.
Lanzhou, Gansu Province, a city in Central China
(Credit: Tsui Chung Pong David)
Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Will there be further changes in the

location
factors? concerns
5
Environmental
The emission of dust from
the iron and steel industry
took up 15% of the total
volume in China in 2007.

Coal is an important power resource for the

iron and steel industry. Burning coal
causes ____ pollution which, in turn leads
to smog, acid rain and reduced visibility. It
also emits carbon dioxide which intensifies
________________.

air

greenhouse effect
The iron and steel industry
is also the most serious
source of ______
water and
_____________
pollution.
solid waste
An iron and steel works in China (Credit: Nie Ming/FOTOE)
Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Will there be further changes in the

location
factors? concerns
5
Environmental
Beijing

The air pollution caused by Shougang in Beijing

is so serious that the central government has
decided to move the production plant away.

Caofeidian
Caofeidian
What are the
location advantages
of Caofeidian?

a deep, frost-free
and silt-free
harbour near large
ports such as
Tianjin

The present and new location of production plants of Shougang

Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Will there be further changes in the

location factors?
To conclude, what are the
location factors affecting
the future location of the
iron and steel industry?

A location which is:

close to markets;
with good transport
networks;
far away from the
densely-populated urban
areas.
Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Stage 1: Inland shift of industries (early

1950s to late 1970s)
In this period, iron
1950s

Anshan

Coalfields
Major coal mines
Iron ore
Major iron and steel works
Other iron and steel works
Oxford University Press 2009

and steel works

were mainly
concentrated in the
north-east, for
example,
Anshan
_________.

What were the major

location factors of
the iron and steel
industry in China
during this period?
Why?

Part 3

Changing industrial locationHow and why does it change over space and time?

Stage 1: Inland shift of industries (early

1950s to late 1970s)
1970s

and even to the

West, e.g. rmqi Anshan
Baotou
Taiyuan
Wuhan
Panzhihua
Coalfields
Major coal mines
Iron ore
Major iron and steel works
Other iron and steel works
Oxford University Press 2009

What were the

major
location
Can
Howyou
did give
the
factors
of the
distribution
any examples
of
iron
and
of
themajor
ironsteel
and
iron
steel
and works
steel
industry
in
change
centresinduring
found
China
the
inthis
the
period?
Central?
1970s?

Inland shift to the

Central ...

Part 3

Changing industrial locationHow and why does it change over space and time?

Stage 1: Inland shift of industries (early

1950s
to late 1970s)
Government policies played a major role on the inland shift of

the iron and steel industry.

1
3
Strategic
Social
reasons:
reasons:
Theachieve
To
central agovernment
more balanced
realized that
economic
development
the major threat of
war was from
throughout
theJapan
wholeand
country
the
USA. Factories in the coastal
To relieve the problem of
areas
could be easily attacked
overpopulation
______________
in the coastal
2 regions
Economic reasons:
Raw materials:
Heavy To lower
iron ore and
transport
and
limestone
costs
bulky
Power resources:
coal
Oxford University Press 2009

Moving the industries

into
the inland
Inland
shift ofto
safeguard
them
industries
Locating near to iron
raw
ore fields: _______
material
_________-oriented
Locating near to coal
mines: _________power
oriented

Part 3

Changing industrial locationHow and why does it change over space and time?

Stage 1: Inland shift of industries (early

1950s to late 1970s)
Government policy is a
particularly important location
factor in China not only in this
period but also in the later period.
Do you know why?
Most iron and steel plants are
owned by the _______.
state Their
locations have been subject to the
changing priorities of the
________-planned
economy
state
during different periods.
Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

Stage 2: Economic reform period (1980s to

the early 2000s)
1970s
Early
2000s

Beijing
Anshan
Shanghai
Wuhan

Oxford University Press 2009

What
Howare
does
the the
major
CanThere
you
name
is a
distribution
location
factors
of
iron
of
some
of
the
general
shift
to
the
and
iron
steel
and
works
steel
major
iron
and
the during
________
coastal
change
industry
in China
this
steel
centres?
regions.
nowadays?
period?

Part 3

Changing industrial locationHow and why does it change over space and time?

Stage 2: Economic reform period (1980s to

the
2000s) policies
1 early
Government
open policy.
In 1978, Deng Xiao-ping adopted the _______

Have some
regions
developed
first!
Deng Xiao-ping

Oxford University Press 2009

Economic development
has been concentrated
in ________
coastal areas

Part 3

Changing industrial locationHow and why does it change over space and time?

Stage 2: Economic reform period (1980s to

the
2000s) advancements
2 early
Technological
Use of new
furnaces
Use of bulk
carriers and
better railway
transport

Less coal and iron ore are used

Lower transport costs of power
resources and raw materials

The location importance of

power resources and
_________________
raw materials decreases
_____________
The location importance of
coastal
market and __________
________

location increases
_________

Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

3
Favourable location factors in coastal
regions

A
Well-developed infrastructure in coastal
regions
These facilities enable the
N
Main railway line
Line under construction
Railway junction/Terminus

easy ______
import of raw
materials and easy
export of finished goods.
_______

il
a
r
e
Dens rks
o
w
t
e
n
km

Oxford University Press 2009

Good port facilities (Shekou

Port, Shenzhen)

Part 3

Changing industrial locationHow and why does it change over space and time?

3
Favourable location factors in coastal
regions
B

Existence of industrial centres

What other
favourable
location
factors do
coastal regions
( Small / Big have?
) markets

_______________
Agglomeration
economies
Abundant supply of
skilled
__________
labour
Oxford University Press 2009

Part 3

Changing industrial locationHow and why does it change over space and time?

3
Favourable location factors in coastal
regions
C
Sufficient supply of cooling water and
extensive flat land
Extensive
___________
flat land

Can get land through

reclamation
______________
Oxford University Press 2009

Water for
cooling
_________

Part 3

Changing industrial locationHow and why does it change over space and time?

Stage 2: Economic reform period (1980s to

the
2000s)
4 early
Problems
of inland areas
Problems
in the
Far away from
inland
areas
major
markets
discourage
industrial
development.
Mainly
( skilled /
unskilled )
labour

Oxford University Press 2009

Poor transport
networks and (
low / high )
accessibility
( Mild /
Extreme
) climate

( Small /
Large )
population

( Gentle /
Rugged )
relief

Uneconomical to
exploit the inferior quality
of coal and iron ore
in inland regions