
China's Ministry of Industry and Information Technology (MIIT) asked Chinese aluminium firms to have replacement capacity ready by end-2018. This notice was directed to firms having permits to replace capacity closed over the past seven years.

According to the MIIT statement on its website, the ruling is applicable to companies producing molten aluminium or aluminium ingots. It is also applicable if they are replacing capacity internally or via mergers and acquisitions.
As a part of Beijing's supply side reforms and environmental shutdowns, China closed 3 million tonnes to 4 million tonnes of illegal smelting capacity in 2017. Government has allowed companies with legal but outdated production are entitled to replace their capacity with more modern facilities, on condition that they listed ass legal facilities.
MIIT specified that any capacity cut within the period of 2011-17 that is not replaced by the end of 2018 will not be able to count as replacement capacity.
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