RPT-China to close steel firms with capacity under 1 mln T

BEIJING Dec 9 (Reuters) - Chinese steel firms with production capacity of less than 1 million tonnes per year will be eliminated from the sector, according to a draft policy document released on Wednesday.

As part of its efforts to impose "order" on the fragmented steel sector, China's Ministry of Industry and Information Technology will also raise environmental standards on steel mills, forcing them to upgrade their equipment or have their licenses revoked.

The proposals will help step up the campaign to curb overcapacity in the sector, the ministry said.

(Reporting by David Stanway, Editing by Jonathan Hopfner)