Ministry Of Industry And Commerce: Elimination Of Tannery, Backward And Heavy Penalties For Substandard Enterprises

Over the next two months, more than 2000 enterprises across the country will be forced to close down all the backward production capacity, otherwise they will be punished by various heavy penalties imposed by the government.

The head of the relevant department of the Ministry of industry and Commerce said, "the battle against elimination of backward production capacity has started", before the end of September this year, more than 2000

At the beginning of this year, the ninety-eighth executive meeting of the State Council studied and deployed the elimination of backward production capacity, and issued the "State Council notice on Further Strengthening the elimination of backward production capacity" (document [2010]7), making clear demands on the objectives, tasks, responsibilities and measures of this work.

In February 26th,

On the basis of consultation with the provinces and municipalities, the Ministry of industry and information technology issued 18 industrial sectors (ironmaking, steelmaking, coke, ferroalloy, electrolytic smelting, zinc smelting, cement, glass, paper making, alcohol, monosodium glutamate, citric acid, tannery, printing and dyeing, chemical fiber and other industries) to the provinces, autonomous regions and municipalities directly under the central government in May 2010 on 26 May 2010, and eliminated the target of backward production capacity in 2010. The provinces and municipalities were required to decompose their targets and tasks to counties and cities, to implement specific enterprises, and to announce the list of enterprises in the local media before the end of June, and to take comprehensive measures to ensure that all of them were shut down before the three quarter. In accordance with the notice of the State Council on Further Strengthening the elimination of backward production capacity (Guo Fa [2010]7) and the State Council on further strengthening efforts to ensure the achievement of the "11th Five-Year" energy saving and emission reduction targets.

The people's governments of all provinces, autonomous regions and municipalities directly under the central government attach great importance to and seriously take up the administrative region.

Some provinces that face pressure to eliminate backward production capacity are actually doing well.

For example, Hebei, a big industrial province, has completed the annual elimination of backward production plans in flat glass, tanning, printing and dyeing, copper smelting and other industries. The target rate of paper and coke has exceeded 8, and steelmaking and cement have more than half.

In 2010, the 18 industries eliminated backward production capacity, involving 2087 enterprises. Among them, there were more than 762 industries: 762 cement, 279 paper making, 201 printing and dyeing, 192 coke, 175 iron making, 143 ferroalloys, and 84 leather making.

From the perspective of the implementation of the provinces, the elimination of heavy tasks, involving a large number of enterprises in the provinces: 230 in Henan, 226 in Shanxi, 180 in Zhejiang, 165 in Hebei, 165 in Yunnan, and 128 in Guizhou.

In accordance with the requirements of the [2010]12 document issued by the State Council, effective measures should be taken to ensure that the backward production capacity of enterprises listed on the list of backward production capacity will be closed before the end of September 2010.

In accordance with the document No. [2010]7 issued by the state, the banking financial institutions shall not provide any form of additional credit support to enterprises that have not eliminated the backward production capacity within a specified time limit. The investment management departments shall not approve and approve new investment projects, and the land and resources administration departments shall not approve new land use, and the relevant administrative departments shall not apply for production licenses, and the production licenses and safety production licenses that have been issued shall be withdrawn according to law.

Those who fail to eliminate backward production capacity and are ordered to close or revoke by local governments shall go through the cancellation of industrial and commercial registration within a prescribed time limit or revoke the business license in accordance with the law.

If necessary, the relevant government departments may require the power supply enterprises to stop supplying power to backward production enterprises according to law.

Enterprises that eliminate backward production capacity according to the prescribed time limit should still give corresponding support in accordance with relevant regulations. Enterprises with heavier and better finished enterprises with backward production capacity should be inclined to arrange technical pformation funds, energy saving and emission reduction funds, approval of investment projects, land development and utilization, and financial support.