State Council announces detailed policy to curb overcapacity in six industries

●Steel: no longer approves and supports steel projects that simply build new capacity and expand capacity ● Cement: Suspension of construction projects that have not started before September 30, 2009 ● Flat glass: Completely eliminate the “Pingla method” within three years Law) Lapse glass production capacity schedule ● Coal chemical industry: Stop the approval of coke and calcium carbide projects that simply expand production capacity in the next three years ● Polysilicon: Before 2011, eliminate polysilicon production capacity with integrated power consumption greater than 200 kWh/kg ● Wind power equipment: principle On the 29th, the Chinese government network announced that the State Council has forwarded the “Opinions on Reducing Overcapacity in Some Industries and Reducing Construction to Guide the Healthy Development of Industries” issued by the provinces, municipalities and ministries. "opinion").
The "Opinions" pointed out that at present, the contradiction of overcapacity in China's steel, cement, flat glass, coal chemical, polysilicon, wind power equipment, electrolytic aluminum, shipbuilding, soybean crushing and other industries is very prominent, in order to consolidate and develop the current economic stability and good momentum, Accelerate the structural adjustment and guide the orderly development of emerging industries. It is necessary to curb overcapacity and redundant construction as soon as possible to achieve the sound development of the industry.
The "Opinions" put forward specific policy guidance for the above industries.
For the steel industry, the "Opinions" proposes to make full use of the current market reversal mechanism to accelerate structural adjustment and technological progress and promote the steel industry by eliminating backwardness, joint restructuring and relocation of urban steel mills on the premise of reducing or not increasing production capacity. Achieve a big to strong transition. Steel projects that simply build new capacity and expand capacity will no longer be approved and supported.
For the cement industry, the "Opinions" pointed out that for the construction projects that have not started before September 30, 2009, construction will be suspended and a serious clean-up will be carried out. All provinces (autonomous regions and municipalities) must formulate a timetable for the complete elimination of backward production capacity within three years.
In the flat glass industry, the existing projects under construction and unworked projects are carefully cleaned up, and all the proposed glass projects should not be filed in all places. All provinces (autonomous regions and municipalities) shall formulate a timetable for the complete elimination of the flat glass production capacity of the “Pingla Method” (including the grid method) within three years.
In the coal chemical industry, the "Opinions" require that the coke and calcium carbide projects that simply expand production capacity be stopped in the next three years, and the construction is not in compliance with the "Coke Industry Access Conditions (2008 Revision)" and "Carbide Industry Access Conditions (2007) Revised)" coking, calcium carbide project.
Strictly control new polysilicon projects in areas with low energy shortages and high electricity prices. By 2011, eliminate polysilicon production capacity with integrated power consumption greater than 200 kWh/kg.
In principle, no new wind power equipment manufacturers will be approved or filed. In the future, we will focus on supporting the independent research and development of 2.5 MW and above wind turbines and bearings, control systems and other key components and industrial demonstrations, and improve the quality control system.
In addition, in principle, the new and expanded electrolytic aluminum projects will no longer be approved in the next three years, and applications for new docks and slipway projects will no longer be accepted, and the expansion projects of existing shipbuilding companies' docks and slipways will be suspended.
In order to achieve the above objectives, the "Opinions" proposes that in the future, strict market access will be strengthened, environmental supervision will be strengthened, and financial policies with safeguards and control will be implemented: the requirements for non-compliance with key industry adjustment and revitalization plans and related industrial policies will not be approved according to the prescribed procedures. For approved projects, financial institutions are not allowed to issue loans. The loans that have been issued must be corrected in an appropriate manner, and they must not be financed through corporate bonds.
The "Opinions" also require local governments to improve land, environmental protection, and credit, actively promote structural changes and changes in development methods, and cause major losses in violation of national land, environmental laws and regulations, and related industrial policies, resulting in serious dereliction of duty or mistakes. Or acts of bad influence are subject to accountability.

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