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State Council Issues Guidelines for Promoting Building Materials Industry

The General Office of the State Council recently issued the Guiding Opinions on Promoting Steady Growth, Restructuring and Efficiency Improvement of Building Materials Industry (for details in Chinese, please see: http://www.gov.cn/zhengce/content/2016-05/18/content_5074416.htm), proposing to further reduce the production capacity of cement clinkers and plate glass and bring their capacity utilisation rate back to a reasonable range by 2020. About 60% of China's cement clinker and plate glass production should take place in the top 10 companies with the largest output after the change.

The Opinions pointed out that every step should be taken to reduce excessive capacity and prohibit capacity expansion. The filing and establishment of new projects that will expand the capacity of cement clinker and plate glass production shall be strictly prohibited until the end of 2020. The exchange of cement clinker and plate glass capacity between enterprises not under common control shall also be suspended until the end of 2017.

Out-dated capacity shall be eliminated and units that fail to meet pollutant discharge standards or exceed the discharge quota shall be subject to consecutive daily penalties. Enterprises that fail to meet China's compulsory standards for product quality and do not meet the work safety standardisation requirements and the conditions for safe production shall be investigated and prosecuted and ordered to stop production for correction in accordance with law. Those that have not made correction or still fail to meet requirements after correction must shut down, stop production and make their exit. Production capacity that makes use of processes, technologies and equipment of the elimination category listed in the Guiding Catalogue for Industrial Structure Adjustment (2011 revised edition) must immediately shut down, stop production and make their exit.

Full-scale experimentation of off-peak production of cement clinkers (including acetylene slag) should be carried out in the heating areas during the heating period and steps should be taken to shorten the working hours of cement clinker devices and reduce the capacity of cement clinker production in the heating areas. At the same time, efforts should be made to effectively prevent simultaneous emission of pollutants from cement clinker production facilities and heating boilers in order to reduce air pollution. Cement clinker production lines in other localities should also carry out off-peak production during the Spring Festival and hot summer days. Plate glass production lines that cannot temporarily suspend production should take self-regulatory measures to reduce load and curtail production. 

Content provided by Picture: HKTDC Research
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