Business Insider is reporting that the Chinese government has ordered the closure of a factory that manufactures the metal used to make steel, and that the plant will be shuttered by the end of the year.
The Associated Press first reported the news.
In a statement, the Chinese Ministry of Commerce said it had ordered the closing of the “metallurgical COKE steel manufacturing plant in the city of Hangzhou” and other related businesses.
“The government has made clear its determination to reduce the use of COKE,” the statement said.
“We urge all businesses to follow suit and stop producing COKE.”
According to the Associated Press, the steelmaker made a profit of US$6.7 million last year, but it had a profit loss of US $2.6 million in 2016.
In a separate statement, China’s Ministry of Industry and Information Technology said that COKE “has not been used for the production of steel for several years, and in fact COKE is now considered hazardous material.”