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    Ministry Of Industry And Commerce: Eliminating Backward Production Capacity Is Not A Closed Enterprise

    2010/9/10 9:20:00 43

    Backward Production Capacity

    For the recent media reports, the list of elimination of backward production capacity has been "water injection", the Ministry of industry and information technology (hereinafter referred to as the "Ministry of industry and information technology")

    Ministry of industry and information technology

    The official responded that the Ministry of industry and commerce is working with the relevant departments of the State Council to formulate inspection and assessment methods for eliminating backward production capacity, and strengthen supervision and inspection of eliminating backward production capacity in all parts of the country so as to ensure that the backward production capacity is eliminated.


    Hou Shiguo, inspector of the industrial policy division of the Ministry of industry and commerce, made the above remarks when he was interviewed by the Ministry of industry and the China economic network.

    He said, "the backward production capacity that has been eliminated in the past few years will be included in the elimination list this year, which is a false report and fraud." this situation will be dealt with seriously once it is discovered, and it is hoped that the media will play a supervisory role.


    He also explained that the announcement (eliminated).

    Backward production capacity

    The list of enterprises means that the enterprise has the task of eliminating backward production capacity this year. Enterprises should eliminate their backward production capacity in time according to the provisions of the state and the province, rather than shutting down or eliminating this enterprise.


    There are several possibilities for the list to be waterflood.


    In August 5th this year, the Ministry of industry and Commerce announced 18 industries to eliminate backward production capacity list, involving 2087 enterprises.

    According to the requirement, the backward production capacity of listed enterprises must be closed by the end of September this year.

    Subsequently, the media exposed this list involving 2087 enterprises "water injection". Some companies listed on the list said that the backward equipment had been eliminated several years ago.


    In response, Hou Shiguo responded that the Ministry attaches great importance to the media's reflection, and has asked relevant provinces to verify the situation, and will strengthen supervision and inspection of the elimination of backward production capacity in conjunction with relevant departments.


    Hou Shiguo said that there might be several situations in which the list was "waterflood": some of the backward production capacity of listed enterprises has been shut down, but the backward production facilities and facilities have not been demolished, so they have also been included in the list. Some enterprises' backward production capacity may be eliminated in the first half of this year before the publication of the list. This is an early completion of this year's elimination task, and some enterprises may have many backward production equipment (production lines). In the first few years, some backward production capacity was eliminated according to the regulations, and some of them were eliminated this year.


    In this regard, Hou Shiguo stressed that the backward production capacity that has been eliminated in previous years is not allowed to be included in this year's elimination list.


    But at the same time, he also said that eliminating backward production capacity is not to cancel or close an enterprise. Backward production capacity may be just a certain production line and a small part of production capacity of the enterprise. These enterprises eliminate equipment. The goal is not to eliminate enterprises, but to eliminate backward production capacity.

    He stressed that enterprises should not only shut down backward production capacity, but also thoroughly dismantle backward production facilities and production facilities so that they can no longer resume production.


    The backward production capacity of steel and cement industry accounts for 20% of total capacity.


    In the interview, Hou Shiguo also said that in recent years, various regions and departments have conscientiously implemented the national macroeconomic regulation and control policy, and achieved positive progress in eliminating backward production capacity. However, due to the long-term accumulation of structural contradictions, the industrial sector, especially those with high consumption and high emissions, has a larger proportion of backward production capacity, and the task of eliminating backward production capacity is still very arduous.


    He said frankly that eliminating backward production capacity involves difficult problems such as asset loss, debt processing and personnel employment, which may also affect local economic growth and revenue in the short term, and it is difficult to advance because of imperfect policies and measures.


    Hou Shiguo also made specific mention of some difficulties in eliminating backward production capacity.

    For example, in addition to giving financial incentive funds to support the elimination of backward production capacity, there is still no direct and effective support measures, and the need to increase the support of incentive funds; if some provinces and municipalities are still implementing financial funds, it will bring difficulties to eliminate backward production capacity.


    Hou Shiguo said, for

    Economic strength

    In a relatively strong place, the elimination of backward production capacity is very positive. For the economically backward areas, especially those with backward production capacity, the government may not be able to cope with the problems when it comes to dealing with problems. Some problems of enterprises may be difficult to solve.


    According to Hou Shiguo, China's task of eliminating backward production capacity is still very arduous.

    At present, the iron and steel industry needs to eliminate 400 cubic meters or less of the backward blast furnace capacity, which accounts for nearly 20% of the total capacity, and the cement industry's backward production capacity is about 5 billion tons, accounting for more than 20% of the total capacity.

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