Anshan - Economy

Economy

The north east of China is a major industrial zone and Anshan is one of the key sites of the north east. The city is renowned as "China's capital of iron and steel." Prior to the development of the Iron and Steel industries, Anshan was a relatively small city of little importance. As the steel mills expanded, so to did the city. Spin off industries developed alongside the steel plant making the area a centre of heavy industry.

As a joint Sino-Japanese venture, Anshan Zhenzing Iron Ore Company Unlimited was started in Anshan in 1918. When Japan occupied Northeast China in 1931, these mills were turned into a Japanese owned monopoly. Anshan subsequently became part of the Japanese puppet state of Manchukuo and additional industries developed around the iron and steel mills. Due to its mills, the city became a significant strategic industrial hub during World War II and as such, was subject to constant Allied bombing during the war.

Total production of processed iron in Manchuria reached 1,000,000 tonnes in 1931-32, of which almost half was made by Shōwa Steel in Anshan. Iron production grew to 7,000,000 tonnes in 1938 and by 1941, Shōwa Steel Works had a total capacity production of 1,750,000 tonnes of iron bars and 1,000,000 tonnes of processed steel. By 1942, Anshan's Shōwa Steel Works total production capacity reached 3,600,000 tonnes, making it one of the major iron and steel centers in the world.

In 1945 the steel plant was looted by soviet forces. The Republic of China government partially repaired the site but it was destroyed again during the Chinese civil war that saw the Communist forces victorious. The mills were once again repaired and Anshan Iron and Steel Company (Angang) was founded in 1948. Form then to 2001, the company produced 290 million tons of steel, 284 million tons of pig iron and 192 million tons of rolled steel. Until relatively recently, when a new steel plant opened in Shanghai, Angang was the largest steel producer in China. Today, Angang consists of three steelworks with 13 rolling mills plus supporting plants which produce coke, refractory materials and machinery for the steel plants. The company has an annual production capacity of 10 million tons of pig iron, 10 million tons of steel and 9.5 million tons of rolled steel. A quarter of China's total iron ore reserves, about 10 billion tons, are located in Anshan ensuring that the city will remain an important steel producer well into the future.

Anshan is rich in other mineral wealth too. The southern and south eastern areas of Anshan are rich in magnesite. Reserves of magnesite here are equivalent to a quarter of all world wide reserves. Anshan also has the worlds largest reserve of talcum accounting for fully one third of the entire world supply. The Xiuyan area of Anshan is known for the production of the precious stone, Jade. The largest single jade stone ever found came from Xiuyan, now carved into the form of a Buddha, it is a major tourist attraction in the area.

Anshan is serviced by Shenyang airport, about 90 kilometers to the north, and by two major highways linking it with Shenyang and Dalian.

The government of Anshan established a five-year plan in 2000 with the aim of turning the city into a strong modern industrial city with plenty of tourism. It also aimed to make the city GDP reach 100 billion RMB by 2005 and to build a modern industrial city by using advances in technology to transform the traditional industries. Attracting foreign investment is also another main idea in the plan. The Anshan government anticipates the foreign investment assets would be around 80 billion RMB by 2005.

Anshan has been identified by the Economist Intelligence Unit in the November 2010 Access China White Paper as a member of the CHAMPS (Chongqing, Hefei, Anshan, Maanshan, Pingdingshan and Shenyang), an economic profile of the top 20 emerging cities in China. The opportunities for engaging Anshan's consumers have been documented in detail by the ethnographer Michael B. Griffiths.