The “13th Five-Year Plan” to go to capacity target is completed two years ahead

Abstract On May 9, the National Development and Reform Commission, the Ministry of Industry and Information Technology and the National Energy Administration issued the "Notice on Doing a Good Job in Resolving Surplus Capacity in Key Fields in 2019" (hereinafter referred to as the "Notice"). Since 2016, all regions and relevant departments have solidly promoted key areas to resolve...

On May 9, the National Development and Reform Commission, the Ministry of Industry and Information Technology and the National Energy Administration issued the "Notice on Doing a Good Job in Resolving Surplus Capacity in Key Fields in 2019" (hereinafter referred to as the "Notice").

Since 2016, all regions and relevant departments have solidly promoted key areas to resolve excess capacity, cumulatively reduced crude steel production capacity by more than 150 million tons, withdrew 810 million tons of backward coal production capacity, and eliminated more than 20 million kilowatts of backward coal-fired power units. Both of them completed the “13th Five-Year Plan” to go to the production capacity target two years ahead of schedule.

The notice requires that the steel industry structure should be further promoted; adhere to the big pressure, increase and decrease, and focus on improving the quality of coal supply; accelerate the clearing of “zombie enterprises” in key areas.

The notice proposes that the regional and central enterprises that have not completed the target of reducing crude steel production capacity will strive to complete the task in 2019; the regional and central enterprises that have not completed the coal de-capacity target will complete the task by the end of 2020; continue to vigorously eliminate the shutdown. The standard is behind the coal-fired power unit.

For "zombie enterprises" with long-term suspension of production, loss of years, insolvency, and lack of viability and development potential, accelerate the implementation of liquidation and cancellation, bankruptcy liquidation, and forced cancellation. For "zombie enterprises" that have lost their solvency but have certain development potential and restructuring value, accelerate the implementation of bankruptcy reorganization, mergers and acquisitions, and debt restructuring.

It is necessary to further promote mergers and acquisitions, optimize layout and transformation and upgrading. Promote mergers and acquisitions and upstream and downstream integration, and cultivate a large number of large-scale enterprise groups with strong international competitiveness in the steel, coal and power industries.

The notice stressed that all regions must strictly implement policies and measures related to capacity reduction, strengthen supervision and accountability, and ensure that production capacity is truly retreating. The relevant member units of the Inter-Ministerial Joint Conference on Resolving Excessive Capacity and Relieving Development in the Iron and Steel Industry shall strengthen the division of labor and responsibility, continuously improve policies and measures, strengthen monitoring and analysis, strengthen social supervision, and seriously deal with localities and enterprises that are falsified, revived, and ineffective in fulfilling their responsibilities. .

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