DUBLIN, February 29, 2016 /PRNewswire/ --
A recent report published on Research and Markets projected the global coal mining industry to grow steadily at a rate of 2% between 2015 and 2019. It expected the coal consumption in China to account for three-fifths of the demand during this period. However, China announced on Monday that it expects to lay off 1.8 million workers in the coal and steel industries in an effort to reduce industrial overcapacity.
This figure is made up of 1.3 million workers from the coal industry and 500,000 from the steel sector, according to Yin Weimin, China's Minister for Human Resources and Social Security. Speaking at a news conference, he said the central government will allocate $15.27 billion over two years to relocate these workers.
A report on the global steel industry predicted growth of around 2%, in terms of consumption volume, during the same forecast period. It stated that the growth of end-user industries such as automotive, mechanical machinery, infrastructure and construction was fueling the demand for steel. A similar report on the steel processing market identified Asia Pacific as the largest market for steel processing because of the willingness of companies in the region to take up capital intensive projects. It projected the market to reach a value of $642.43 Billion by 2020 at a CAGR of 2.16% from 2015 to 2020.
But the Chinese economy grew at just 6.9% in 2015, the weakest in 25 years. According to reports, the the Chinese aim to remove around 500 million tonnes of coal production capacity within the next three to five years and halt approvals of all new projects. Jobs will be created in the services sector to help absorb laid-off workers from these sectors.
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SOURCE Research and Markets