Lately, the General Office of the Ministry of Industry and Information Technology ("MIIT") has distributed the Circular on Trans-provincial Replacement of Electrolytic Aluminum Production Capacity within Conglomerates (the "Circular"), effective from the issue date.
The Circular expressly states that the replacement of electrolytic aluminum production capacity between enterprises affiliated to the same conglomerate should be determined by such conglomerate on its own but should be willing to come under scrutiny. The conglomerate must ensure that the production capacity quotas of enterprises having their capacity withdrawn are real and accurate and not be used repeatedly and that these enterprises are free from any legal disputes or disputes over obligation; and the capacity withdrawal and the placement of employees are accomplished effectively. Moreover, the Circular states that the conglomerate must release an announcement on the website of the provincial industry and information technology department at the place to which the capacity quota is transferred to make public relevant information of the transferred capacity quota, capacity withdrawal, placement of employees, debt disposition, and other efforts in implementing relevant duties. Additionally, the Circular stipulates that the province (autonomous region or municipality directly under the Central Government) that receives the transferred capacity quota must verify the capacity replacement plan of the conglomerate and the realness and validity of the capacity quota in question, and also publish its review opinions on the aforesaid website of the provincial industry and information technology department for at least five working days.