Media Center

Position:Home > Media Center > Industrial Information > Ferrous Metallurgy –Stop Increasing Production Capacity of Five Industries, including Iron and Steel Industry

Ferrous Metallurgy –Stop Increasing Production Capacity of Five Industries, including Iron and Steel Industry

On the afternoon of February 18, Information Office of the State Council held press conference and invited relevant personnel of the Ministry of Industry and Information Technology of the People’s Republic of China (MIIT) were invited to make introductions to the development of industry and information technology of China in 2013. MIIT vice Minister Mao Weiming disclosed that resolution of excessive production capacities was an extremely difficult task, and the production capacities of the five industries, i.e. iron and steel industry, cerement industry, electrolytic aluminum industry and sheet glass industry should be stopped from increasing before 2017.

Journalist: how is the work on resolving excess production capacities going in 2013? What specific and effective measures will be introduced in 2014?
  Mao Weiming: it is an extremely difficult task to resolve excess production capacities. We have conducted special researches on resolution of excess production capacities according to the unified arrangements of the Party Central Committee and the State Council in cooperation with the National Development and Reform Commission, MEP and several other departments, and decided to control such problem from the following aspects based on the summary of work done in last year:
  Firstly, production capacities should be prevented from increasing. The production capacities of the five industries, i.e. iron and steel industry, cerement industry, electrolytic aluminium industry and sheet glass industry should be stopped from increasing before 2017. In addition, projects in violation of laws or regulations under construction should be eliminated gradually, and guidance should be directed to constructed projects that have not passed relevant procedures specified by laws or regulations based on types of the projects in strict accordance with standards.
  Secondly, stricter definition standards should be implemented. We think that in the current context of economic development, the historical tasks specified by the industrial routes and capacity standards originally set has been accomplished substantially in recent years. Based on this, we will introduce and implement stricter standards on environmental protection, energy assumption and safety, severely punish those who violate the law and discipline, improve technological levels of existing enterprises, increase their technological capability, and enhance their competitiveness in accordance with open, equal and fair market principles.
  Thirdly, implementation of merger and reorganization should be accelerated. We will support enterprises to develop to large and stronger ones, nurture advantaged enterprises, merge and eliminate enterprises lagging behind, and improve the industrial concentration ratio in order to speed up the development of our advantaged industries and enterprises and improve roles of excellent entrepreneurs in market distribution and decisive effects of resources.
  Fourthly, we will encourage enterprises to speed up their steps to “go out” based on the current stage of economic development. For example, more production capacities with competitive edges may enter the international stage and give full play to their roles in the China-ASEAN Free Trade Area, economic cooperation zones of China and Africa and China and Latin America.
  Mao Weiming expressed that “we will be bound to complete the task of resolving excess production capacities specified by the Party Central Committee and the State Council for 2014 by applying different approaches and implementing different measures for different industries. We also ally with some other departments to cooperate, intensify our work, and attempt to finish the goals and tasks set out by the ‘twelfth Five-year Plan’. In 2015, we will focus on the task of eliminating production capacities lagging behind based on work done previously.