Economy

Stride in phasing out backward capacity to continue

(China.org.cn)
Updated: 2011-05-12 16:51

China's Ministry of Industry and Information Technology (MIIT) released targets to eliminate outdated production capacity in 18 industries in 2011, Shanghai Securities News reports.

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Outdated capacity reduction targets in key industries such as cement, steel and electrolytic aluminum are much higher than last year.

MIIT hopes to eliminate 600,000 tons of outdated capacity in the electrolytic aluminum sector, up 76.99 percent from last year’s target and 26.27 million tons in the steelmaking sector, up 218.42 percent. This year’s targets for cement, flat glass and paper industries have increased 45.8 percent, 301.23 percent and 71.87 percent respectively.

The central government will earmark special funds for eliminating outdated production capacity in certain sectors, according to a regulation issued by the MIIT.

The regulation also urges local governments to provide financial support to shut down antiquated production facilities and facilitate mergers and restructuring.