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34 chemical companies in Hunan closed down, exited or switched to production

On October 14th, at the news briefing on the relocation and transformation of chemical companies along the Yangtze River in Hunan Province, Zhang Zhiping, deputy director of the Provincial Department of Industry and Information Technology, introduced that Hunan has completed the closure and withdrawal of 31 chemical companies along the Yangtze River and 3 chemical companies along the Yangtze River. Relocation in a different place involves the relocation of 1,839.71 mu of land, 1,909 employees, and fixed assets of 44.712 million yuan. The task of relocation and reconstruction in 2021 will be fully completed…

Resolve: Eliminate the risk of environmental pollution and solve the problem of “Chemical Encirclement of the River”

The development of the Yangtze River Economic Belt must “maintain major protection and not engage in major development” and “guard the clear waters of the river.” The State Office of the Yangtze River has made it clear that it will speed up the resolution of the pollution problem of the chemical industry within 1 kilometer from the shoreline of the main stream and main tributaries of the Yangtze River.

In March 2020, the General Office of the Provincial Government issued the “Implementation Plan for the Relocation and Reconstruction of Chemical Enterprises along the Yangtze River in Hunan Province” (referred to as the “Implementation Plan”), comprehensively deploying the relocation and transformation of chemical companies along the Yangtze River, and clarified that “key closure and exit of outdated production capacity and safety in 2020 Chemical production enterprises that do not meet environmental protection standards should guide chemical production enterprises to relocate to a compliant chemical park 1 km away through structural adjustments, and unswervingly complete the relocation and transformation tasks by the end of 2025.”

The chemical industry is one of the important pillar industries in Hunan Province. The comprehensive strength of the chemical industry in Hunan Province ranks 15th in the country. A total of 123 chemical companies within one kilometer along the river have been approved and announced by the Provincial People’s Government, of which 35 were closed and withdrawn, and the others were relocated or upgraded.

The relocation and transformation of enterprises face a series of problems. The “Implementation Plan” proposes specific policy support measures from eight aspects, including increasing financial support, implementing tax support policies, broadening funding channels, and increasing land policy support. Among them, it is clear that the provincial finance will arrange 200 million yuan of special subsidies every year for 6 years to support the relocation and transformation of chemical production enterprises along the river. It is one of the provinces with the largest financial support for the relocation of chemical enterprises along the river in the country.

The chemical companies along the Yangtze River that have closed down or switched to production are generally scattered and small chemical production companies with relatively low product technology content, weak market competitiveness, and potential safety and environmental risks. “Resolutely shut down 31 chemical companies along the river, completely eliminated their environmental pollution risks to the’One River, One Lake and Four Waters’, and effectively solved the problem of’Chemical Encirclement of the River’.” Zhang Zhiping said.

 


Post time: Oct-21-2021