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June, 1999

China Steps Up Efforts to Close Small Glass Factories

    China is stepping up its efforts to close down small cement plants and glass factories.

    "We plan to eliminate 2,000 illegal cement plants, shut down another 676 firms whose licenses have been revoked and close 490 production lines in 1999," said Hao Zhenhua from the State Administration of the Building Materials Industry.

    There is also a plan this year to close a number of small glass mills with an annual production of 200,000 boxes of glass, Hao said.

    These closures will help reduce production capacity by 50 million tons of cement and 15 million boxes of glass this year, and by similar amounts next year.

    China's cement and glass industries have developed rapidly since the adoption of the reform and opening-up policies in 1978.

    The output of flat glass rose from 17.84 million boxes in 1979 to 175 million boxes in 1998; the production of cement went up from 65.24 million tons to 536 million tons in the same period.

    By 1998, China had 330 flat glass mills with about 500 production lines and an annual production capacity of 215 million boxes.

    It also had 9,200 cement plants with a total capacity of 700 million tons a year.

    "Small cement and glass factories played a role in economic development locally, but their backward technology, high energy consumption, low productivity, poor quality and serious pollution had a negative impact on the sustainable development of the economy," Hao said.

    The poor quality of these factories posed a threat to project construction and the safety of people and property.

    "Products manufactured by the majority of the small cement and glass factories were not up to the standard set by the central government," Hao said.

    Meanwhile, damage to the environment and misuse of resources have restricted the development of the building materials industry, he said.

    The central government's decision to continue with active fiscal policies and expand domestic demand provides a huge opportunity for China's building materials industry, officials said.

    Large firms are encouraged to participate in the construction of State key projects and infrastructure and urban facilities.

    The building materials industry hopes to make profits of 300 million yuan (US$36 million) in 1999. The industry's output value is expected to grow by 8 per cent.

source: Chinese Newspaper