(Yicai Global) July 5 -- The China Building Materials Federation has unveiled plans to cut cement production capacity by 70 million tons this year as it looks to reduce air pollution and consolidate the industry to optimize efficiency.

The top 50 cement makers in the country will ideally axe any production lines making less than 2,000 tons a day and upgrade those with outdated technology in order to achieve this goal, the federation said in a work plan for the sector published this week. The larger firms typically have production lines making 5,000 to 7,000 tons a day.

China made about 2.2 billion tons of cement last year, making up more than 60 percent of global output, but still struggles with outdated technology and excess capacity.

In areas with higher pollution levels, cement companies must scrap all production lines making less than 2,000 tons a day, according to the plan, which identifies the Beijing-Tianjin-Hebei region in northern China as one of these areas.

The scheme also encourages industry consolidation, aiming to bring over 60 percent of national production to the top 10 cement makers, and wants to eliminate poor-quality cement products so that they make up less than half of all cement made.

The association wants to see mergers and restructuring to make this happen, it said, adding that it supports integration through cross shareholdings and asset exchanges.