Changing industrial location─How and why does it change over space and time?
Part 3
3.3 How has the location of
the iron and steel
industry in China
changed over time?
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
The manufacturing system of the iron and
steel
industry
Inputs
Manufacturing processes
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
Changing industrial location─How and why does it change over space and time?
Part 3
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
© Oxford University Press 2009
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)
Part 3
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
Changing industrial location─How and why does it change over space and time?
How important is the iron and steel
industry in China?
The iron and steel industry is known as ‘the backbone of all
industry’ as it provides basic _____________
raw materials for many other
industries.
Do you know what
Iron and
steel
China’s
rank
in the
industry
is terms
very
world is in
important
of steelto
China.
production?
A pile of steel bars
© Oxford University Press 2009
Part 3
Changing industrial location─How 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
36
global crude steel production.
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
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.
After
the
1980s,
the
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 location─How 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
/ inefficient
and regrouping,
five major
iron and)
steel centres have developed
Major iron and steel centres in China
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
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)
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
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
at the
throughout
________
Angang in the
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.
Changing industrial location─How and why does it change over space and time?
Part 3
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?
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
Will there be further changes in the
location factors?
1
Government policies
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.
Changing industrial location─How and why does it change over space and time?
Part 3
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.
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
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
Changing industrial location─How and why does it change over space and time?
Part 3
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
Changing industrial location─How and why does it change over space and time?
Part 3
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
Changing industrial location─How and why does it change over space and time?
Part 3
Will there be further changes in the
location factors?
5
Environmental concerns
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 ____
air pollution
which, in turn leads to
smog, acid rain and
reduced visibility. It also
emits carbon dioxide
which intensifies
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
Changing industrial location─How and why does it change over space and time?
Part 3
Will there be further changes in the
location factors?
5
Environmental concerns
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
Changing industrial location─How and why does it change over space and time?
Part 3
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
Changing industrial location─How and why does it change over space and time?
Part 3
Stage 1: Inland shift of industries (early
1950s to late 1970s)
1950s
Anshan
Coalfields
Major coal mines
Iron ore
Major iron and steel works
Other iron and steel works
© Oxford University Press 2009
In this period, iron
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?
Changing industrial location─How and why does it change over space and time?
Part 3
Stage 1: Inland shift of industries (early
1950s to late 1970s)
1970s
… and even to the
West, e.g. Ürümqi 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 location─How 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
Moving the industries
realized that
economic
development
the major threat of
into
the inland
Inland
shift ofto
war was from
throughout
theJapan
wholeand
country
the
safeguard
them
industries
USA. Factories in the coastal
To relieve the problem of
areas could be easily attacked
______________
overpopulation in the coastal
Locating near to iron
2 regions
Economic reasons:
raw
ore fields: _______
Raw materials:
material
_________-oriented
Heavy
To lower
iron ore and
transport
and
limestone
Locating near to coal
costs
bulky
mines: _________power
Power resources:
oriented
coal
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
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 during
state
different periods.
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
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 and
the
major
general
shift
to
the
and
iron
steel
works
steel
iron
the and
________
coastal
change
industry
during
in steel
China
this
centres?
regions.
nowadays?
period?
Changing industrial location─How and why does it change over space and time?
Part 3
Stage 2: Economic reform period (1980s to
the early 2000s)
1
Government policies
In 1978, Deng Xiao-ping adopted the _______
open policy.
Have some
regions
developed
first!
Deng Xiao-ping
© Oxford University Press 2009
Economic development
has been concentrated
in ________
coastal areas
Changing industrial location─How and why does it change over space and time?
Part 3
Stage 2: Economic reform period (1980s to
the early 2000s)
2
Technological advancements
Less coal and iron ore are used
Use of new
furnaces
Lower transport costs of power
resources and raw materials
Use of bulk
carriers and
better railway
transport
The location importance of
_________________
power resources and
_____________
raw materials decreases
The location importance of
________
coastal
market and __________
_________
location increases
© Oxford University Press 2009
Changing industrial location─How and why does it change over space and time?
Part 3
3
Favourable location factors in coastal
regions
A
Well-developed infrastructure in coastal
regions
Main railway line
Line under construction
Railway junction/Terminus
km
© Oxford University Press 2009
N
These facilities enable the
easy ______
importof raw
materials and easy _______
ofexport
finished goods.
Good port facilities (Shekou
Port, Shenzhen)
Changing industrial location─How and why does it change over space and time?
Part 3
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
Changing industrial location─How and why does it change over space and time?
Part 3
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
_________
Changing industrial location─How and why does it change over space and time?
Part 3
Stage 2: Economic reform period (1980s to
the early 2000s)
4
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