Zhejiang province was given mandatory orders to eliminate the obsolete capacity of six industries including chemical fiber, printing and dyeing, paper-making as well as other industries.

Chemical fiber industry was mandatorily to eliminate 200,000 tons of obsolete capacity in this regard. New program launching or capacity enlargement programs pertinent to industries with overcapacity will not be approved and the target fulfillment will be directly related with the KPI system of municipal government.

In addition, Zhejiang province also established the reimbursement system to shore up the technological upgrade program of certain companies. Outdated capacity of Zhejiang province now accounted for as much as 10% to 15% of the entire capacity of the six designated industries.

Source: China Textile Leader