(Yicai Global) Oct. 12 -- Shanxi Coking Group Co. [SHA:600740] is cutting back on output until March 31, 2018 in response to local government requirements set to reduce air pollution through autumn and winter.

The temporary measure is set to affect the production of 150,000 tons of coke a month and 60,000 tons of other chemicals each month. Based on the current market prices of the products in question, the company could see revenue shrink by as much as CNY2.8 billion (USD423 million), it said in a statement last night.

During the period, coking plants and chemical recycling factories will operate with reduced loads, and tar processing, methanol and other production plans will shut down to perform maintenance, according to the announcement.

The municipal party committee and government office in Linfen, Shanxi province recently requested that coking companies in the area extend their coke discharging time to 48 hours from Oct. 1, 2017 to the end of March next year, the statement added.

The northern province of Shanxi is China's largest coal producing and processing province. The north of the country tends to suffer severe air pollution problems in the colder months.

Shanxi Coking Group's turnover for the first six months this year was CNY2.67 billion, the firm said in its interim report. Net profit attributable to shareholders was CNY19.89 million.