China to remove another 100 million tons capacity in three years

The NDRC has reiterated the importance of structural adjustments and set timetable for the steel industry to eliminate outdated capacity on its official website. Key tasks on energy saving and emissions reduction this year include: Promote structural optimization and updates, rein in duplicate construction of high energy consuming, high polluting, and low efficient capacity; enhance entry threshold of environmental protection; prohibit financial institutes from lending money to high energy consuming and over capacity sectors; and speed up the elimination of outdated capacity. The country plans to scrap 15 million kilowatts of thermal power stations, 10 million tons of pig iron capacity and six million tons of steel capacity this year, and eliminate another 72 million tons of pig iron capacity and 25 million tons of steel capacity by 2011.