ReleaseWire Connect

Recently, the Ministry of industry and information issued the first batch of 2013 19 industrial sectors of the list of backward production capacity of enterprises, the list covers the iron, steel, paper, cement and other 19 industries, involving industry and eliminate backward production capacity target task has been broken down into the practice of enterprise. The Ministry of industry and information technology requirements, the list of backward production capacity to ensure that by the end of 2013 complete removal of obsolete, and shall not be transferred to other areas. To determine whether the backward production capacity should be two standards. On the one hand is judged according to the technical level of production, the so-called backward production capacity, refers to the technical level is lower than the industry average level of production equipment, production technology and production capacity; on the other hand is resulted from the productivity consequences of judgment, if the production equipment, production process pollutant emissions, energy consumption, water consumption and other technical indicators higher than the average level of industry, the production capacity is the backward production capacity. Steel accounted for 49.4% of world steel output in China Backward production capacity often linked together and excess capacity. Backward production capacity is a technical judgement, overcapacity is to judge the market. Under the condition of perfect market economy, excess capacity generally include backward production capacity; and the elimination of backward production capacity, exit to change the market supply and demand, reduce the degree of surplus production. At present, overcapacity is a common phenomenon existing in Chinese industry, this also caused the unfair competition of low-cost strategy use among enterprises in the industry, product homogenization serious, also led to a lot of inventory backlog phenomenon. This not only leads to the practical multiple industry oversupply, but also makes part of the rapid decline in corporate profits or even heavy losses, at this time to speed up the elimination of backward production capacity is at the time.