Physical inputs 1 Raw materials, including coal, iron ore/scrap iron and steel, and limestone

© Oxford University Press 2009

Part 3 Changing industrial location─How and why does it change over space and time?

3.3.33 How has the location of How has the location of the iron and steel the iron and steel industry in China industry in China changed over time? changed over time?



Physical inputs1 Raw materials, including coal, iron ore/scrap iron and steel, and limestone2 Land

Cultural inputs1 Power supply2 Capital3 Labour4 Technology5 Transport6 Government policies7 Management8 Market

Inputs

Finished products(example)1 Steel tubes and pipes2 Steel sheets

Waste1 Hot water2 SlagMarketCash

Outputs

Manufacturing processes

The manufacturing system of the iron and steel industry

Molten iron

Iron ore/scrap iron and steel, coal and limestone

Slag

Iron making Steel making CastingRolling and

shaping

Molten iron



What are the factors affecting the location of iron and steel works?

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

Operation factors

• 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)





The iron and steel industry is known as ‘the backbone of all industry’ as it provides basic _____________ for many other industries.

raw materials

How important is the iron and steel industry in China?

Iron and steel industry is very

important to China.

Do you know what China’s rank in the world is in terms of steel production?

A pile of steel bars




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

production.36




Before the 1980s, the production of crude steel was growing

very slowly.

After the 1980s, the growth has been

speeding up.

In the 2000s, fast growth has taken

place.

Crude steel production in China, 1955-2007

Source: China Statistical Yearbooks

Why do such changes occur?



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 ) and ( efficient / inefficient )

Major iron and steel centres in China

After several rounds of merging and regrouping, five major iron and steel centres have developed



How has the location of China’s 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)



Why do some iron and steel plants remain in their original locations?

Have you noticed which major iron and steel centre thrives

throughout the period from the

1950s to present?

________ in Liaoning.Angang

Why does Angang continue to operate at the same l

ocation?

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.

It would adversely affect other related industries.

Industrial _______inertia



How has the location of China’s iron and steel industry changed over time?To conclude …

Will there be further changes in

the location factors of the iron

and steel industry?



The influence of the _______________ 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.

During the two stages in the development of

the iron and steel industry, the influence

of the central government has been

dominant.

economic market

Will there be further changes in the location factors?1 Government policies

However, in recent years, the central

control on industrial policies and planning

has been reduced.



Will there be further changes in the location factors?2 Raw 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.



Rail transport

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.

(Credit: Panorama Stock Photo Co. Ltd.)



All of the major iron and steel centres are located at or north of the Chang

Jiang

Places south of the Chang Jiang are

undergoing a fast pace of economic development

Will there be further changes in the location factors?3 Transport

Transporting iron and steel products requires high transport costs



As economic development in Central and West China increases, there will be increasing demand for iron and steel products in these regions.

Will there be further changes in the location factors?4 Market

Lanzhou, Gansu Province, a city in Central China(Credit: Tsui Chung Pong David)



Will there be further changes in the location factors?5 Environmental concerns

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 ________________.

The iron and steel industry is also the most serious source of ______ and _____________ pollution.

air

greenhouse effect

watersolid waste

An iron and steel works in China

The emission of dust from the iron and steel industry

took up 15% of the total volume in China in 2007.

(Credit: Nie Ming/FOTOE)



Will there be further changes in the location factors?5 Environmental concerns

The present and new location of production plants of Shougang

Beijing

Caofeidian

The air pollution caused by Shougang in Beijing is so serious that the central government has de

cided to move the production plant away.

What are the location advantages of Ca

ofeidian?

Caofeidiana deep, frost-free and silt-free harbour near large ports such

as Tianjin



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.



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

What were the major location factors of the iron and steel industry in China

during this period? Why?

CoalfieldsMajor coal mines

Iron oreMajor iron and steel worksOther iron and steel works

Anshan

1950sIn this period, iron and steel works were mainly concentrated in the north-east, for example, _________.Anshan




CoalfieldsMajor coal mines

Iron oreMajor iron and steel worksOther iron and steel works

Anshan

1970sHow did the

distribution of the iron and steel works

change during this period?

Inland shift to the Central ...

… and even to the West, e.g. Ürümqi

Can you give any examples of major iron and steel centres found in the Cent

ral?Baotou

Taiyuan

WuhanPanzhihua

What were the major location factors of the iron and steel

industry in China in the

1970s?



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 Strategic reasons:The central government realized that the major threat of war was from Japan and the USA. Factories in the coastal areas could be easily attacked

Moving the industries into the inland to safeguard them

2 Economic reasons:Raw materials: iron ore and limestonePower resources: coal

Locating near to iron ore fields: _______ _________-oriented

Locating near to coal mines: _________-

oriented

rawmaterial

power

Heavy and bulky

To lower transport

costs

3 Social reasons:To achieve a more balanced economic development throughout the whole country Inland shift of

industriesTo relieve the problem of ______________ in the coastal regionsoverpopulation




Most iron and steel plants are owned by the _______. Their

locations have been subject to the changing priorities of the

________-planned economy during different periods.

state

state

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?



Shanghai

BeijingAnshan

1970sEarly 2000s

Wuhan

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

How does the distribution of iron

and steel works change during this

period?

There is a general shift to the ________

regions.coastal

Can you name some of the major iron and steel centr

es?

What are the major location factors of the iron and steel industry in China

nowadays?



Stage 2: Economic reform period (1980s to the early 2000s)1 Government policies

Have some regions

developed first!

Deng Xiao-ping

In 1978, Deng Xiao-ping adopted the _______ policy.open

Economic development has been concentrated in ________ areascoastal



Use of new furnaces

Use of bulk carriers and better railway transport

Less coal and iron ore are used

The location importance of _________________ and _____________ decreases

The location importance of ________ and __________ 　_________ increases

raw materialspower resources

market

Lower transport costs of power resources and raw materials

coastal

Stage 2: Economic reform period (1980s to the early 2000s)2 Technological advancements

location



N

km

Dense rail

networks

Good port facilities (Shekou Port, Shenzhen)

Main railway lineLine under constructionRailway junction/Terminus

These facilities enable the easy ______ of raw materials and easy _______ of finished goods.

import

export

3 Favourable location factors in coastal regionsA Well-developed infrastructure in coastal regions



3 Favourable location factors in coastal regionsB Existence of industrial centres

What other favourable location factors do coastal regions h

ave?( Small / Big ) markets

_______________economies

Agglomeration

Abundant supply of__________ labourskilled



___________flat land

Extensive

Can get land through______________reclamation

Water for_________cooling

3 Favourable location factors in coastal regionsC Sufficient supply of cooling water and extensive flat land



Stage 2: Economic reform period (1980s to the early 2000s)4 Problems of inland areas

( Gentle / Rugged )

relief

Problems in the inland areas discourage industrial

development.

Far away from major markets

Poor transport networks and ( low / high ) accessibility

( Small / Large )

population

Mainly ( skilled / unskilled ) lab

our

( Mild / Extreme ) climate Uneconomical to

exploit the inferior quality of coal and iron ore

in inland regions

Documents

Physical inputs 1 Raw materials, including coal, iron ore/scrap iron and steel, and limestone