Chongqing keeps tight rein on excess output

This year Chongqing City will follow the central government's instructions in earnest to eliminate 400,000 tons of outdated pig iron capacity and 150,000 tons of steel capacity in the wake of having wiped out 3.5 million tons of steel capacity by the end of 2009.

A senior official of the city said a large percentage of the 550,000 tons capacity to be eliminated this year will go into small private mills whose owners, in some cases, are making a living by this trade for their life. Therefore, it is natural for them to loathe this policy. But we should let them know what we want to clamp down are the outmoded facilities and low-efficient processes, not entrepreneurs themselves. To eradicate these low efficient capacities is to divert manpower and money towards such more advanced sectors as coking coal and textiles. The city will announce a blacklist of substandard enterprises this month for public supervision.