It is reported that China has ordered more than 2,000 companies in 18 industries including cement, coking, iron, papers and dyeing to shut outdated manufacturing capacity by the end of September.
The Ministry of Industry and Information Technology announced in an order recently that the factories targeted for closure were either highly polluting, highly energy wasting or did not meet safety requirements. It said firms that fail to comply with the orders could face penalties including having their sewage treatment licenses revoked, lending curbs, or even having their business licenses withdrawn.
The companies affected include the parent company of Guangxi based Liuzhou Iron and Steel and a cement-making unit of Jilin Yatai Co which is based in the northeast of the country.
China faced with serious environmental problems and pressure on resources, has been seeking to upgrade its manufacturing sector, implementing stricter energy efficiency and pollution targets and forcing the closure of wasteful capacity.