The shutdown of Henan-based Suiping Huaqiang Plastic, which employs 20,000 people, comes less than two months after China banned production of ultra-thin bags and ordered supermarkets to stop giving away free carriers from June 1.
The surprise move, which was hailed by environmentalists, was a disaster for the company, which earned most of its 2.2 billion yuan
(about US$308 million) income from the annual production of 250,000 tonnes of bags, the report said.
Many other firms in the central China province have now moved their manufacturing focus to recyclable and biodegradable plastics, a Xinhua news agency report said.
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