Resolving excess capacity to promote industrial upgrading

Drying equipment

China Drying News reported that the Central Economic Work Conference concluded a few days ago emphasized the importance of resolving the contradiction of overcapacity as the key to adjusting the industrial structure. The State Council executive meeting held on the 19th also proposed five policy measures to promote the healthy development of the photovoltaic industry. The first of these is to eliminate backward production capacity and accelerate industrial restructuring and technological progress.

Various signs indicate that the current downward pressure on economic growth and the relative surplus of production capacity have intensified. The Central Government has made it clear that it is necessary to make full use of the forceful mechanism formed by the international financial crisis and take measures to eliminate excess capacity as an opportunity to promote industrial adjustment and upgrading, promote mergers and reorganizations, eliminate backwardness, strengthen scientific and technological innovation, make overall plans, and strive to enhance industrial competitiveness.

Overcapacity issues highlighted

Once upon a time, all parts of our country were on the photovoltaic project. However, behind the booming and blooming flowers, the contradictions of blind investment and low-level repetition are also accumulating.

According to Gao Sumei, deputy director of the Ministry of Industry and Information Technology Coordinating Agency, China's photovoltaic companies are mostly concentrated in the manufacturing sector, and important core technologies are not available in China. At the same time, China's photovoltaic industry market relied heavily on external demand, and more than 70% of its products were exported to Europe and the United States. Thus, when the U.S. Shuangnai and European investigations led to the closure of the U.S. photovoltaic market to Chinese companies, the issue of overcapacity in the country was exposed, and the general business difficulties followed.

At present, most of China’s industrial products have occupied a high share in the international market. Under the influence of the continuous shrinkage of external demand, the serious surplus of production capacity has also become more prominent. Some industries are in an industry-wide overall loss.

Looking back at 2012, besides a large excess of production capacity in the traditional industries such as steel, cement, flat glass, coal chemical, and shipbuilding, the once-hot chemical products such as nitrogen fertilizer, calcium carbide, chlor-alkali, methanol, and plastics were also difficult to sell due to production exceeding demand; copper The production situation of nonferrous metals industries such as aluminum, lead and zinc smelting is sluggish, and the issue of overcapacity is highlighted. Even the products of emerging industries such as polysilicon and wind power equipment have excess capacity, and large-scale forgings also have the potential for overcapacity.

“Overcapacity is a normal phenomenon of the market economy. The information on the supply and demand sides of the market is asymmetric, and a certain degree of excess capacity will help the market to fully compete and increase efficiency. However, a serious overcapacity will impact the normal market order and must be effectively guided in a timely manner. , suppression and resolving, "said Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology.

The right medicine scientific layout

The deep-seated reason why China's overcapacity is highlighted in many industries is that the industrial structure is irrational and the development mode is backward. In addition, some local governments have adopted a balanced approach to unilaterally emphasize GDP growth, use public resources such as land preferences and tax incentives, and guide investors into already overheated investment areas, leading to excessive and disorderly expansion of production capacity.

“Our steel production capacity is on the one hand, and large quantities of raw materials such as iron ore are imported on the other hand. Simply increasing the production capacity at a low level of repeated investment has been impassable, and we must increase the technical and environmental threshold and improve the quality of development. The structure and mode of transfer are more important than blindly expanding production capacity, said Zhu Hong.

The Central Economic Work Conference put forward that it is necessary to strengthen the prediction of the development trend of various industries with overcapacity and formulate targeted adjustment and resolution plans. It is necessary to focus on enhancing innovation to drive the development of new impetus, focusing on entrepreneurial talents, accelerating technological innovation, and strengthening product innovation, brand innovation, industrial organization innovation, and business model innovation. To rationally arrange the layout of productive forces, we must adhere to a nationwide plan of chess, overall planning, and scientific layout for major projects that have a vital relationship with the lifeline of the national economy and significant economies of scale.

“In the photovoltaic industry as an example, its application prospects are broad. Faced with the current difficulties in serious overcapacity, if companies focus on improving the level of technology and equipment, increase R&D investment, promote industrial restructuring, reduce power generation costs, and actively foster domestic In the consumer market, where exports are limited, it is also possible to shift some of the production capacity to local production in the consumer countries to ease the excess pressure. After a difficult period, this industry may usher in an opportunity for upgrading, said Gao Sumei.

Eliminating backward and optimized structures

In 2012, China issued a total of 19 industrial industries to eliminate backward production capacity targets. Among them, 10 million tons of iron-making, 7.8 million tons of steelmaking, 219 million tons of cement (clinker and grinding machine), 47 million weight boxes of flat glass, 9.7 million tons of papermaking, 2.8 billion meters of printing and dyeing, 20 million kVA of lead-acid batteries Time. Compared with 2011, this year eliminated the backward production capacity of the new lead-acid battery industry, coke, ferroalloy, copper smelting, lead smelting, cement, flat glass, paper, alcohol, monosodium glutamate, citric acid, leather, printing and dyeing 12 industry tasks have been increase.

In the process of resolving the contradiction of overcapacity, some key industries are quietly upgrading and the overall quality of the industry is continuously improving.

First of all, the advantageous enterprises carry out cross-regional and cross-ownership mergers and reorganizations as well as corporate mergers and reorganizations in key regions, and the industrial concentration has been continuously improved. The reporter learned that in the next step, the country will also formulate more fiscal, tax, financial and industrial policies for mergers and acquisitions.

Secondly, the state supports enterprises to carry out technological transformation and technological innovation, encourage the development of new varieties with high added value, improve the quality of products, promote new technologies and new processes for energy conservation, consumption reduction, pollution reduction and pollution control, develop comprehensive utilization, and improve the level of production equipment. The use of information technology to improve production control and operating standards, and improve the core competitiveness of related companies.

In addition, the relevant departments adopt laws and economic measures to strictly comply with the technical standards and specifications such as scale, energy consumption, material consumption, environmental protection, and quality, and use shut-down, renewal, transformation, relocation, etc. The capacity freed up market space.

“The Central Economic Work Conference proposed that the key to realizing respect for economic law, quality, profitability, and sustainable development is to deepen the strategic adjustment of the industrial structure. Resolving the overcapacity contradiction, optimizing the structure, eliminating backwardness, and upgrading the level are undoubtedly the industrial structure. An important part of strategic adjustment.” Zhu Hong said.

Standard Sprocket

Standard Sprocket,Standard Stock Sprocket,Lifting Standard Sprocket Wheel

Conveyor sprocket Co., Ltd. , http://www.transmissionsprocket.com