Reports from China suggest that the Gansu province in the northwest of the country is to remove 3.75 million tonnes of obsolete industrial capacity in 2009 to fulfill its energy conservation and carbon emission targets.
Industries targetted include iron smelting, steel making, ferroalloy, calcium carbide, cement and paper making.
Heavy industry takes up 83% of the province's energy consumption.
The drive is part of the province's goal to cut energy consumption per CNY 10,000 GDP by 5.2%, and to control the emission of sulphur dioxide and oxygen demand to under 0.523 million tonnes and 0.17 million tonnes respectively. The provincial government has taken a number of measures in recent years to accelerate the elimination progress. These include the implementation of key environmental protection projects and higher power costs for inefficient producers.
Sources: Alibaba, MySteel
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