According to Mr Li Sha the official in charge of the elimination of disqualified industrial production capacities in the eastern Chinese province of Shandong, the province will implement strict measures to ensure the elimination of out of date capacities, while at the same time helping enterprises to pass safely through the period in question.

Since the beginning of 2010, China has placed increased emphasis on the elimination of disqualified production capacities. In this context, Shandong Province has determined the total capacities to be eliminated in the three years from 2010 to 2012 inclusive. In this period, the province will eliminate out-of-date capacities affecting 17 industries, 53 enterprises, 125,000 employees and a total of 9,592 items of equipment.

As regards new investment projects in industries with excessive capacities, the province will adhere to the principle of capacity replacement, i.e., the total capacities of new investment projects should be equal to or less than the aggregate disqualified capacities that are to be eliminated.

(Sourced from www.steelorbis.com)
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