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      1. Home > News 

        China plans to slash outdated production capacity

        published:2013-07-30

        The government is considering a detailed plan to eliminate outdated industrial production capacity, the China Securities Journal reported Tuesday.

        The plan is expected to eliminate outdated capacity in the steel, cement, electrolytic aluminum, plate glass and shipbuilding sectors, according to the report.

        Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology (MIIT), confirmed that MIIT and the National Development and Reform Commission are currently working on the plan.

        The plan will boost the sectors' utilization of existing capacity by setting industry access standards and eliminating outdated capacity, the report said.

        Official statistics showed that the capacity utilization rate for the alumina, electrolytic aluminum and steel sectors in 2012 stood at 72.5 percent, 78 percent and 67 percent, respectively.

        To ease overcapacity in affected industries, MIIT last week ordered some 1,400 companies in 19 sectors to eliminate outdated production capacity by September and eliminate excess capacity by the end of the year.

        Sources of information: CHINA ECONOMIC NET

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