OREANDA-NEWS. The city of Handan will embrace breakthroughs amid the upgrading of the steel industry this year, as 35 major companies complete the steps to achieve this goal - with the injection of 73 billion yuan.

All steel and iron companies are required to release their transformation plans by the end of the year, ,the municipal government said.

In 2012, the GDP of Handan exceeded 300 billion yuan, of which 30 percent was from traditional industries like steel, iron and construction materials. The steel production and processing industry accounts for half of the industrial added value.

To upgrade the pillar industry of the city, Handan will initiate 106 projects related to the steel production industry, with investment reaching 50.9 billion yuan - and 42 projects not involved with the industry, attracting 23.2 billion financing, in a bid to extend the industrial span of the city.

For example, as the base of two companies involved in the large-scale production of coal carbonizing, an industrial zone in Cixian county introduced 16 processing companies to the zone, making it a 20-billion-yuan worth industry zone.

To reduce the reliance on steel and coal and optimize the industrial structure, the city is shifting its focus on scientific and technical innovation in its future development.

Handan chief Party leader, Gao Hongzhi said the city needs to encourage innovation to motivate new products and technologies in the traditional industries, so the city can upgrade the industry structure and guarantee its economic growth, which is the only way to achieve sustainable development.

Regarding non-steel companies, the city government also has plans to support their efforts, and it will allocate 100 million yuan to 100 major companies with great potential, especially the strategic emerging industries, such as new materials, new energy and advanced equipment manufacturing. The city plans to have at least 1,000 companies with annual main business revenue exceeding 20 million yuan in this field in five years, and has already launched several projects worth billions of yuan.