CCM: Production cut for pharmaceutical industry in Hebei, China 12-26-2016

One of the most important provinces for the pharmaceutical industry in China, Hebei province, is going to undergo massive production limitations and cuts, in order to face the critical pollution in the big cities. CCM believes, that this government action can even lead to a decrease of the total GDP in 2016.

 

 

 Source: Baidu

 

Every year, the Ministry of Environmental Protection of the People’s Republic of China releases a ranking of China’s major Cities regarding their air pollution. This year, the report was published on December 13, 2016, revealing devastating results for Hebei province. Among the 74 cities, that are ranked in the report, six cities of Hebei province belong to the ten top polluted Cities in China, including the province capital, Shijiazhuang.

 

The government in Shijiazhuang has bearded the consequences of this ranking and increased the efforts to reduce pollution again. One of the measurements affects the pharmaceutical, chemicals, packaging and furniture industry in Shijiazhuang and other pollutes cities in Hebei. These industries show a large emission of volatile organic compounds, which represent a big share of the pollution. Therefore, manufacturers in these industries are ordered to limit or even completely cut their production for an indefinite period.

 

Organic compounds are the chemicals, which have carbon in their structure. Volatile organic compounds are characterised as changing their appearance likely to a vapor or gas state. They are mostly released as a result of burning fuels like gasoline, wood, coal, or natural gas.


 


Looking at the pharmaceutical industry in detail, the mentioned volatile organic compounds are generally found in the antibiotics and active pharmaceutical ingredients, responsible for emissions like waste gas, water, and residues, according to the analysis of CCM.

 

The results are concerning, because Shijiazhuang is one of the main pharmaceutical production bases in China, including 112 pharmaceutical manufacturers, according to the Hebei Food and Drug Administration. Among this 112 producers, a group of 42 enterprises produces active pharmaceutical ingredients, which setting them on the list of suspended and cut production.

 

According to CCM’s research, all these companies were responsible for an output of USD485.37 million in the year 2015. Furthermore, the winter season is traditionally one of the peak seasons for pharmaceutical industries. With the government action of suspension, this huge potential cannot be fulfilled throughout, which is leading to a reduced revenue of the pharmaceutical industry in Hebei province. This effect will likely also take part in the outcome of the total GDP of Hebei province, where some lower numbers are possible, according to CCM.

 

About CCM:

 

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets.

 

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Tags: pharmaceutics, vitamins

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