China: More cement and steel plants will be closed due to overcapacity

Byrebecca3360

Updated Mon, 12 May 2014 15:53:59 GMT

China will close more cement and steel plants this year than originally planned to deal with overcapacity, the industry ministry said.

The nation decided to eliminate 50.5 million tonnes of cement capacity and 28.7 million tonnes of annual steel capacity this year, the Ministry of Industry and Information Technology said in a statement today.

That compared with an initial target of 42 million tonnes for cement and 27 million tonnes for steel as outlined by Premier Li Keqiang in his government report earlier this year.

The country's crude steel output rose to a record high of 779 million tonnes last year.

China has been phasing out old and inefficient capacity in its industrial sector as part of efforts to revamp its growth model and fight pollution.

The ministry also said 420,000 tonnes of annual aluminum capacity and 115,000 tonnes of lead smelting will be eliminated this year.