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China's industrial polluters given two months to close

08-09-2010 15:07 BJT

BEIJING, Aug. 9 (Xinhua) -- China's industry chiefs have warned more than 2,000 companies to close obsolete production facilities within two months or face cuts in credit and a suspension of government approvals.

The Ministry of Industry (MIIT) and Information Technology has set the deadline at the end of September for firms to shut down outdated facilities in a move to cut overcapacity and raise the level of economic growth.

The government order involves 2,087 companies, according to a document released Sunday by the ministry.

The order covers 18 industries: iron, steel, coke, iron alloys, calcium carbide, electrolytic aluminium, copper smelting, lead smelting, zinc smelting, cement, paper-making, glass, ethanol, monosodium glutamate, citric acid, leather-making, printing and dying, and chemical fibers.

The cement, paper-making and iron sectors had the most numbers of companies ordered to close outdated energy-consuming and polluting capacities.

Liuzhou Iron and Steel Co., Ltd., according to the government decree, would need to slash 2 million tonnes of outdated iron-making capacity while 762 cement companies were also targeted.

Companies that failed to do so before the deadline would have their waste discharge licenses revoked, said Li Yizhong, Minister of Industry and Information Technology.

Bank loans and new project approvals from the government would not be provided to those companies who failed to clean up, said Li.

The failing companies would not get approval from land management authorities to apply for more new land for their projects while production licenses would also be recalled by relative authorities, said Li.

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