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Chongqing tackles manufacturing over-capacity

27 April 2011
Chongqing municipal government has approved a plan to further reduce over-capacity in some industrial sectors during the 12th five-year period (2011-2015), according to Chongqing Daily. Production of cement will be reduced by 18.72m tons, representing 27 per cent of current capacity, coke by 3.5m tons, 53 per cent of the current capacity, and glass by 6m weight cases, 17 per cent of current capacity. As much as 72 per cent of the current production capacity of calcium carbide will also be cut, amounting to 180,000 tons. Lead and zinc smelting capacity will shrink by 100,000 tons, representing 23 per cent of the current total. Two other big polluters – the paper-making and dyeing sectors – will have to cut their current capacity by 25 per cent or 600,000 tons and 40 per cent or 200m metres respectively.

The local government has promised to provide a series of financial support measures to allow related companies to shut down, merge or change and those individuals who lose jobs will be offered early retirement or be helped in finding new employment. The government’s support will also cover unemployment benefits, pensions and healthcare, and subsistence, the newspaper article said.

     
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