State Council calls for more plant closures

The State Council has issued a policy statement calling for more rapid closures of old and inefficient factories and power plants, the South China Morning Post reported. In the third such statement since October, the State Council gave specific targets for plant closures in the electricity, coal, coke, ferro-alloy, calcium carbide, steel, non-ferrous metal, construction materials, paper, ethanol, tannery and textiles sectors. Targets include the closing of 8,000 small coal mines that tend to be unsafe and polluting, as well as small and inefficient power plants and steel mills. Past attempts at closing inefficient plants have been stymied by resistance from local governments. Beijing hopes to encourage closures of plants through targeted measures such as tightening access to bank credit and raising energy prices.