Substandard chemical enterprises in Jiangsu will encounter shutdown before 2020 05-16-2019

The Jiangsu Government in China has officially issued the Improvement Plan of Safety and Environmental-Friendly Production in Jiangsu Chemical Park recently. With the existence of this plan, a green initiative of promoting the safety in the chemical industry has been launched in order to clear up the chemical enterprises that fail to meet requirements. The number of chemical enterprises will be faced with a decrease from 2,000 to 1,000 by the end of 2020, which has aroused great concerns in the industry.

The plan has clearly indicated the overall purpose, which is to achieve radical improvement in safety, obvious optimization for area layout and sharp reduction of low capacity. In addition, criteria for withdrawal and a specific time schedule have been confirmed in the plan.


Chemical enterprises below environmental standards will be withdrawn

According to the new plan chemical enterprises unable to meet environmental-friendly standards and suffering from great potential hazard on safety are likely to be confronted with a shutdown. The main goal is to ban the chemical enterprises or production plants with outdated technology falling behind that have been listed in the Elimination Catalogue in the country. Also, with the withdrawal of chemical plants with poor infrastructure of safety and environmental protection low capacity of chemical production can be better adjusted.

All chemical enterprises will be conducted with a strict assessment. Substandard ones will face a shutdown or a rectification within a deadline. Enterprises that fail to meet standards during the rectification or make an overdue rectification will also undergo a shutdown. Enterprises ranked as Category D in Comprehensive Evaluation of Resource Intensive Utilization in Industrial Enterprises will be withdrawn quickly. Procedure of reproduction and inspection during the rectification will be strictly prohibited.


The plan has listed specific time schedule for the withdrawal

In the aspect of optimizing the layout of chemical industry a particular time schedule for the withdrawal has been listed in the plan.

-     Chemical enterprises outside the chemical industrial park within 1km along both sides of the mainstream and its tributaries of the Long River will be in principle withdrawn or relocated by the end of 2020.

For enterprises that are unable to be moved, a series of risk assessment regarding the safety and the environment will be executed for the reform and improvement. Those within the industrial park but without any relevance to the industrial chain and with huge hidden danger in safety and environment with be shut down by the end of 2020. Chemical projects of building and expanding chemical industrial parks are strictly prohibited.

-     The number of chemical enterprises in environmental sensitive areas will be reduced.

Chemical enterprises within the First-Grade Protection Zone of Taihu Lake, within 1km along the Beijing-Hangzhou Grand Canal and the Clear Water Channel of Tongyu River, as well as enterprises in the environmental sensitive zones located in the red-line area of ecological protection, the Nature Preserve, protected area of drinking water source and so on will be shut down or relocated by the end of 2020.

-     Reform and relocation of the enterprises of hazardous chemical materials in densely inhabited districts in town will be accelerated.

Enterprises with failure in reaching the standard of hygienic buffer zones after assessment will be shut down or withdrawn by the end of 2020. As for enterprises that are unable to be shut down or relocated, all inhabitants within the hygienic buffer zone will be moved out by the end of 2020.  For enterprises that meet the standard of hygienic buffer zones strengthening of safe environmental supervison and encouragement of enterprise upgrade and relocation are needed.

-     Chemical enterprises out of the industrial park will be decreased.

Enterprises outside the industrial park that face a high risk of safety, a poor level of environmental management and a low level of technological capacity will be all shut down or withdrawn by the end of 2020.


Several chemical industrial parks will be shut down

The Improvement Plan indicates reduction of the number of chemical industrial parks, especially those in the centralised zone. The location of chemical industrial parks with a small scale, low industry correlation, incomplete infrastructure, serious environmental issues of safety and densely distributed sensitive targets will be cancelled. After the cancellation of location the chemical industrial park will be banned from developing new chemical projects. Meanwhile, the existing enterprises in the chemical industrial park will be decreased to a certain degree.

It is also stated clearly in the plan that strict administration of the chemical centralized zone is of great significance. Enterprises and projects of explosive chemicals are banned and listed into Catalogue of Hazardous Chemicals. Additionally low-end, highly risky, highly consuming and highly polluting chemical projects must be eliminated. Furthermore, facilities for production and storage in the centralised zone, areas with dense population and the buffer zone between key protection targets should be reconfirmed. Substandard chemical industrial parks should be immediately rectified. Overdue rectification and unfulfillment will lead to a shutdown or withdrawal. Large chemical enterprises outside the chemical industrial park should execute the regulations of administration according to that of the chemical industrial park.


For more information about China’s chemicals market, please have a look at our chemical reports.

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