More than 150 industrial sites heavily polluting the atmosphere near the under-development Shanghai Disneyland will be closed by the end of 2016 as officials start to establish a tourism zone in the area.

The plans are part of a larger Shanghai initiative to cut coal consumption by 40,000 tons every year. Various forms of pollution have increased as the country has industrialised, which have caused widespread environmental and health problems. Shanghai in particular burns more coal than any other place in the country and has one of the most polluted atmospheres as a result – standing at five times the Chinese average.

The Pudong New Area tourism site currently houses 153 enterprises assessed as heavy energy polluters. Located in the villages of Jiebang, Qigan, Beizhuang and Wanan – around 5km (3.1m) away from where Shanghai Disneyland is being built – the Shanghai Economy and Informatization Commission (SEIC) said the affected private enterprises would be compensated and relocated.

While the SEIC did not name any of the enterprises, it is understood they span such industries as iron and steel production, chemical engineering, construction materials and machinery.

In addition to removing industrial polluters, the Pudong New Area government said it will introduce and promote tourism, agriculture, public services and eco-friendly sectors surrounding Shanghai Disneyland.

While the companies will be relocated over the next year, the theme park and resort will open several months before they are scheduled to close their doors. So far, 73 companies have been ordered to shut down or move out of the area during the first half of 2016.