On the 5th, the Ministry of Industry and Information Technology announced on the list of 18 industrial enterprises in iron and steel making, steelmaking, coke, cement, glass, and papermaking that eliminated backward production capacity in 2010. The list involved 2,087 companies. The Ministry of Industry and Information Technology urges relevant parties to take effective measures to ensure that the backward production capacity of listed companies is shut down before the end of September.
The 18 industrial sectors include ironmaking, steelmaking, coke, ferroalloy, calcium carbide, electrolytic aluminum, copper smelting, lead smelting, zinc smelting, cement, glass, paper, alcohol, monosodium glutamate, citric acid, tanning, printing and dyeing, chemical fiber, etc. industry. The industries involved in the announcement included a large number of companies: 762 cements, 279 paper mills, 201 printing and dyeing, 192 coke, 175 ironmaking, 143 ferroalloys, and 84 tanning.
From the perspective of the decomposition and implementation of the provinces, the provinces that have relatively heavy elimination tasks and involve a large number of enterprises include: 230 in Henan, 226 in Shanxi, 180 in Zhejiang, 165 in Hebei, 165 in Yunnan, and 128 in Guizhou.
According to the Ministry of Industry and Information Technology, companies that have not eliminated the outdated production capacity within the specified time limit will be revoked for emission permits. Banking financial institutions must not provide any form of new credit support. Investment management departments will not approve and approve new investment projects, and the Ministry of Land and Resources Management The newly approved land is not approved, and the relevant management department will not apply for production licenses. The production licenses and safety production licenses that have been issued shall be withdrawn in accordance with the law. For enterprises that do not eliminate backward production capacity according to regulations, and are ordered to close or cancel by local government, they are required to apply for cancellation of industrial and commercial registration within a period of time, or revoke business licenses according to law. When necessary, relevant government departments may require the power supply companies to stop the power supply of backward production capacity enterprises.
Enterprises that eliminate outdated production capacity by specified deadlines should still provide appropriate support in accordance with the relevant regulations; enterprises that have relatively heavy tasks for eliminating outdated production capacity and have completed better should arrange for technological transformation funds, energy conservation and emission reduction funds, nuclear projects for investment projects, Land development and financing support will be tilted.
The list of 2087 companies involved many listed companies and affiliates. For example, in the list of ironmaking enterprises, Liuzhou Iron and Steel (Group) Co., Ltd., the controlling shareholder of Liuzhou Iron & Steel Co., Ltd., has the most backward production capacity to be eliminated, which is 2 million tons; in the list of cement companies, Yatai Group, its controlling subsidiary, Yatai Group, Harbin Cement Co., Ltd. has 1 million tons of backward production capacity to be eliminated. In addition, the listed companies involved include lion head shares, Tianshan shares Qing Song, etc.
The Ministry of Industry and Information Technology said that the backward consumption of energy, high energy consumption, heavy environmental pollution, and unsecured safety are important manifestations of the extensive economic development model and are one of the important factors that lead to the low quality and efficiency of China’s development and weak competitiveness.

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