(Corrects para 2 “eight sectors” to “five”)
BEIJING, Oct 15 (Reuters) - China said it would block new projects in a number of sectors suffering from overcapacity, including steel, aluminium, shipbuilding and cement, according to a statement issued by the government on Tuesday.
The long-awaited plan to tackle long-standing supply gluts in five industrial sectors was published by China’s cabinet, the State Council, according to the statement on China’s official government website, www.gov.cn.
Margins in sectors like steel and aluminium have been affected for years by a massive supply glut, leaving many firms suffering heavy losses and reliant on government subsidy.
According to the new plan, China will also seek to absorb overcapacity by stimulating domestic demand, relocating plants overseas, restructuring and merging existing firms and eliminating plants by strengthening environmental, safety and energy standards.
Reporting by David Stanway, Editing by Michael Perry