China has ordered the mandatory closure of 2,087 companies in 18 industries – including dyeing and printing – because of their outdated production capacities.

A directive by the Ministry of Industry and Information Technology (MIIT) yesterday (8 August) ordered the companies – which include 200 printing and dyeing mills and 80 tanneries – to be shuttered by the end of September.

Their business licenses will be revoked and they will be denied bank loans and approval for new land and investment projects, if they fail to close down by the deadline.

The move is part of the government's efforts to restructure the economy amid slowing industrial output and meet environmental standards under the current Five Year Plan.

The Ministry said the factories targeted for closure were either highly polluting, highly energy-wasting, or did not meet safety requirements.