Taiheiyo Cement Corp has been ordered by the Chinese city of Nanjing to close a local production facility by the end of next year due to pollution concerns.

Shutting the Nanjing plant would reduce Taiheiyo Cement's Chinese output capacity by 30-40 per cent, The Nikkei reported on Wednesday. Japan's number one cement producer will ask the city to reconsider.

If Taiheiyo Cement does not follow the order, the local partner with which it has a joint venture will likely be penalised, with those in charge to be dismissed from the company, The Nikkei reported.

Taiheiyo Cement has three Chinese plants, and the Nanjing facility is capable of producing 1-1.5Mta of clinker.