Part of China's economic restructuring will see Shandong province gradually phase out outdated technology, get rid of low-quality products and close down environmentally unsound enterprises.

The restructuring program will last three years and involve more than 2,700 enterprises and some 170,000 employees.

A number of small enterprises that engage in coal mining, cement production, oil refinery, thermal power generation, steel making, and building materials production will be shut down. The reasons include out-dated technology, low-quality products, high energy consumption and seriously polluting the environment.

Shandong will also drastically cut its cotton weaving production.