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Flat glass industry joint restructuring or national support
In order to actively and steadily address the issue of overcapacity in industries such as steel, cement, electrolytic aluminum, flat glass, and shipbuilding, the State Council recently issued the "Guiding Opinions on Resolving the Severe Overcapacity of Production Capacity," commonly known as the "Guidance Opinions." These guidelines aim to not only tackle the most critical sectors but also guide the resolution of overcapacity in other industries.
The "Guidance Opinions" outline eight key tasks to resolve the serious overcapacity problem. First, it strictly prohibits the construction of new production capacity and properly handles illegal projects already under way. Second, it calls for a comprehensive cleanup of existing illegal production capacity and strengthens regulatory oversight and access control. Third, it emphasizes the elimination of outdated production facilities and guides the orderly exit of inefficient capacity. Fourth, it encourages enterprise mergers and acquisitions to optimize industrial layouts.
Fifth, the guidelines focus on developing effective domestic demand and improving the structure of consumption. Sixth, they promote the expansion of international markets and enhance foreign investment cooperation. Seventh, they encourage technological breakthroughs, strengthen enterprise management innovation, and boost innovation-driven development. Eighth, they advocate for improved government management, fair competition environments, better market mechanisms, and the establishment of long-term solutions.
Specifically, the "Guidance Opinions" call for revising the standards and specifications for flat glass and related products. It recommends using energy-efficient doors and windows in both new and existing buildings, promotes the use of low-emissivity insulating glass, and supports the upgrading of existing production lines. The quality of float glass should be improved, and the development of functional glass should be encouraged. It also advocates for the integration of original film production with deep processing, aiming to increase the deep processing rate of flat glass to over 50%.
Furthermore, it emphasizes the need to accelerate structural adjustments in key production areas, especially in environmentally sensitive regions like Hebei, Guangdong, Jiangsu, and Shandong. It supports joint restructuring efforts to form large enterprise groups with complete industrial chains and strong core competitiveness. This initiative aims to create a more sustainable and competitive industry landscape.