Shanxi Province announced that it would eliminate 10 million tonnes capacity in steel industry and 14.5 million tonnes capacity in coking industry this year.

In 2007, the province eliminated 908 obsolete equipments from 600 enterprises, covering industrial output of over CNY 100 billion. It washed out 470 iron making blast furnaces with total capacity of 20.9 million tonnes, 62 coke furnaces with capacity of 11.31 million tonnes and 61 submerged arc furnaces with capacity of 429,000 tonnes.

The province has set up compensation fund to promote obsolete capacity elimination during 2007 to 2010.