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China to rein in cement overcapacity

(chinadaily.com.cn)
Updated: 2009-08-25 16:50

The Ministry of Industry and Information Technology (MIIT) has made a draft regulation on the access threshold for the cement industry in an effort to the curb the industry's overcapacity, the China Securities Journal reported today.

Related readings:  China's cement industry in supply glut

The MIIT will not approve new cement production lines in provinces where clinker output capacity exceeds 1,000 kg per capita during 2011 to 2015, the paper said. It will lift requirements on cement producer's equity capital in new projects and raise the bottom line for daily production capacity.

Zhu Hongren, spokesman for the MIIT, said previously the cement industry is in "severe overcapacity", as only 69.1 percent of clinker output capacity was in actual use last year, and only 66.7 percent of the cement producing capacity was in utility.

Meanwhile, investment in the cement industry grew 67.01 percent year-on-year in the first half of 2009, with investment last year totaling 105.1 billion yuan, up 60.67 percent year-on-year.