Strict control of total production capacity, a new round of coal and steel industry capacity to accelerate!

The year 2020 will mark the end of efforts to cut overcapacity in key industries such as steel and coal. Recently, the central and local governments at all levels have introduced successive measures, and a new round of capacity cutting is accelerating.Among them, the coal and steel industry to reduce capacity is still the focus of the work, the future will further accelerate the disposal of zombie enterprises, strictly control the total capacity.

The National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance and other government departments jointly issued a notice recently, stressing that efforts should be made to further cut overcapacity in key areas and comprehensively consolidate the achievements of cutting overcapacity.For regions and central government enterprises that have not yet met the 13th Five-Year Plan to cut overcapacity, we need to ensure that the task is fully completed by the end of 2020.Relevant state departments will continue to carry out special inspections and spot checks to consolidate the achievements of steel and coal in cutting overcapacity, and resolutely prevent the revival of projects that have been withdrawn from production.

Among them, the coal and steel industry is still the top priority in the work of cutting capacity.The NATIONAL Development and Reform Commission and other departments will further improve the replacement of steel capacity, promote the scientific and rational implementation of steel projects.Strict implementation of safety, environmental protection, energy consumption, quality, land use, industrial policy and displacement capacity and other requirements, it is strictly prohibited in any name or in any way new steel smelting capacity, investigate illegal activities of various kinds of steel production capacity, accelerate the backward production capacity, fight "DeTiaoGang" resurgence and dissolve excess capacity and production.

In the coal sector, we will continue to increase pressure on coal production, reduce production costs, improve quality, and eliminate poor production facilities. We will resolutely eliminate outdated production facilities that do not meet the requirements for safety and environmental protection and do not meet industrial policies.We will adhere to a long-term mechanism for replacing production capacity and guide the orderly withdrawal of inefficient and ineffective production capacity.We will deepen reform of the coal industry to strengthen regulation and service, accelerate the commissioning and production of coal mines under construction, release advanced production capacity in a reasonable and orderly manner, and ensure the orderly replacement of old and new coal production capacity.

The National Energy Administration and the National Development and Reform Commission reiterated in a guideline on energy security for 2020 that "zombie enterprises" with an annual output of less than 300,000 tons and those that have been suspended for a long period of time should be classified and dealt with to speed up the withdrawal of backward production capacity.

In addition to the central level, local governments have recently stepped up their policies to cut overcapacity.Steel province hebei released close down backward production facilities in 2020 work plan, promote the comprehensive screening on the key industries around the city, will flow all out backward production capacity, also strengthen screening work in shandong province, according to law by close, close, close, cutting off power and water and so on, to ensure that the backward production process equipment or backward product orderly exit on time.

Experts said that since 2016, by making solid progress in reducing overcapacity in key areas, the overall task of cutting overcapacity has been completed, and initial results have been achieved in cutting overcapacity in a systematic and structurally sound way.The industrial structure and production layout have been optimized, the quality and efficiency of supply have been greatly improved, and the long-term mechanism for the healthy development of the industry has been constantly improved.In the future, we will further promote the merger and reorganization of steel, coal and power enterprises and the integrated development of upstream and downstream enterprises. We will rely more on market mechanisms and scientific and technological innovation to optimize the allocation of factors of production, and encourage the concentration of advanced production capacity in competitive regions and enterprises.We will encourage traditional coal and steel enterprises to transform and upgrade through technological innovation, industrial integration and the development of emerging industries, so as to form new economic growth points.

According to the NDRC, another batch of outdated coal production capacity will be withdrawn by 2020, and the number of coal mines will be limited to no more than 5,000, with large coal bases accounting for more than 96% of China's coal output.At the same time, we will continue to build a diversified pattern of electricity production, prudently push forward the construction of coal power plants, issue early warning of the risks of implementing the planned construction of coal power plants, and strictly control the scale of new production capacity of coal power plants.