[Fellow]The Shaanxi provincial government has called for companies to reduce overcapacity by the endof this year.
[Ferro-alloys.com]The Shaanxi provincial government has called for companies to reduce overcapacity by the endof this year.
The Industry and Information Technology Department said on Friday that cement production willbe reduced by 900,000 tons and electrolytic aluminum production by 40,000 tons.
Shaanxi, one of China's major energy producing provinces, relies heavily on oil, chemical andcoal production.
"In the past three years, oil and coal prices have fallen by more than 50 percent, which hasdragged down Shaanxi's economic growth figures," Lan Jianwen, spokesperson at the Industryand Information Technology Department, said. "Low energy product prices will continue for a longperiod of time, which we have to adjust to."
Meanwhile, he said the overcapacity problem in industries such as mining, coal, chemical andconstruction equipment manufacturing are extremely serious. The government is making effortsto reform these sectors.
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