China to shut old steel, power plants in 2007

[jpak]

http://www.stuff.co.nz/3982529a6026.html

In 2007, 30 million tonnes of outdated pig iron capacity will be closed, and 35 million tonnes of crude steel capacity, premier Wen Jiabao was to say as part of a speech to the National People's Congress, China's parliament.

China's steel industry has expanded rapidly, despite attempts by Beijing to rein in the sector and force smaller or older firms out of business.

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Wen and other leaders blame heavy industry for China's failure to meet energy efficiency and emission reduction goals in 2006, according to excerpts of the speeches seen by Reuters.

Small thermal power plants would also be phased out, with 10 gigawatts of capacity - or less than 2 per cent of national generating capacity - to be shut in 2007, Wen is due to say.

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