The State Council will take another heavy blow to resolve overcapacity.

Yesterday, the State Council issued the "Guiding Opinions on Resolving the Serious Overcapacity Contradiction" (hereinafter referred to as the "Guiding Opinions"), aiming to actively and prudently resolve the serious overcapacity contradictions in industries such as steel, cement, electrolytic aluminum, flat glass, and shipbuilding. For illegal projects, heavy efforts will be made to rectify them, and important progress is planned to be made within five years. This opinion will be beneficial for accelerating the integration and adjustment of the above-mentioned industries, and related leading enterprises are also expected to welcome positive news.

Resolving overcapacity is another major measure taken by the new government to coordinate stable growth, adjust structure, promote transformation, and create an upgraded version of the Chinese economy. It is also a key focus of transforming the economic development mode and promoting industrial structure adjustment in the current and future periods. The reporter learned from departments such as the National Development and Reform Commission and the Ministry of Industry and Information Technology that relevant departments are formulating corresponding policy measures around this work. The issuance of the "Guiding Opinions" coincides with it.

The Guiding Opinions point out that in order to resolve overcapacity, it is necessary to control the increment and optimize the stock, and actively and steadily promote industrial transformation and upgrading. That is, to digest, transfer, integrate, and eliminate excess production capacity separately; Efforts will be made to innovate institutional mechanisms, accelerate the transformation of government functions, and promote industrial transformation and upgrading.

Based on the characteristics of the industry, the documents have put forward policy recommendations for industries such as steel, cement, electrolytic aluminum, flat glass, and shipbuilding, and identified eight main tasks to resolve the serious overcapacity contradiction, including strictly prohibiting the construction of new capacity projects, comprehensively cleaning up and rectifying established illegal production capacity, resolutely eliminating outdated production capacity, promoting enterprise mergers and acquisitions, striving to explore effective domestic demand, improving demand structure, and consolidating and expanding the international market.

According to the plan, an additional 15 million tons of ironmaking, 15 million tons of steelmaking, 100 million tons of cement (clinker and grinding capacity), and 20 million weight boxes of flat glass will be phased out by the end of 2015.

The Guiding Opinions also propose supporting policy measures to resolve the serious contradiction of overcapacity by strengthening and improving industry management, strengthening land environmental protection supervision, and improving financial and fiscal policies. The overall approach is to coordinate industrial, environmental, land, and financial policies to curb overcapacity. For projects that violate regulations, approval, filing, and provision of land, environmental impact assessment, and credit support are not allowed. Among them, construction projects that have not obtained legal procedures shall not be allowed to lend, issue bonds, or go public for financing.

It is worth noting that the photovoltaic and wind power industries, which were previously classified as overcapacity industries, were not included in this specific plan due to their long-term strategic development needs.

The Guiding Opinions propose that when resolving overcapacity, it is also necessary to tap into the potential of the domestic market and digest some of the overcapacity. Including promoting the application of steel structures in the construction field, increasing the proportion of steel structures used in public buildings and government investment construction, and promoting seismic resistant buildings such as integrated light steel structures in areas with high natural disaster incidence such as earthquakes; Promote the development of building materials in rural areas and steadily expand market demand for steel, cement, aluminum profiles, flat glass, and other products. Optimize the structure of shipping capacity and accelerate the elimination and renewal of old and outdated transport vessels.

At the same time, relevant standards and specifications will be revised to improve the standards for the use of steel, concrete, glass and other products in construction, driving product upgrades and upgrades. And accelerate the cultivation of the market for marine engineering equipment and offshore engineering facilities.

Among them, for flat glass, guidance is proposed to revise the standards and application specifications for flat glass and products, use energy-saving doors and windows in new and existing building renovations, encourage the use of low radiation insulated glass, support the upgrading and renovation of existing production lines, and increase the proportion of high-quality float glass raw materials.

"The policy encourages and guides the upgrading of cement and flat glass products, which is beneficial for technologically advanced and strong enterprises to further occupy the market," analysts said.

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