Chinese city Yichang shuts down 38 chemical enterprises 12-28-2019

According to news from the Bureau of Economy and Information Technology in Yichang city, Hubei province on December 5, 38 chemical enterprises have been shut down in Yichang city since 2017. 7 chemical enterprises have completely switched to producing nonchemical products. As a result, the plan to shut down chemical enterprises along the Yangtze River has been completed.

Yichang city is located in the upper and middle reaches of the Yangtse River. Yichang city is also rich in minerals and water. With its convenient transportation and abundant resources, many chemical enterprises are distributed along the riverside, which causes serious environmental problems. It is vital to protect the water from the Yangtse River from being contaminated. In September 2017, the government of Yichang city launched a plan for industrial transformation and upgrade, and aimed to relocate 134 chemical enterprises to other places within three years in order to keep the water in the Yangtze River clean.

So far, 38 chemical enterprises have been shut down, including the 34 chemical enterprises which were on the shutdown list and another 4 new chemical enterprises. Among the 57 chemical enterprises which are planned to switch to producing nonchemical products, 52 chemical enterprises have successfully completed 59 technology transformation projects, while three chemical enterprises are in progress and two are completely closed. Another 36 chemical enterprises are planned to move to the chemical industrial zone. 18 chemical enterprises have successfully moved to this zone, apart from two enterprises which are calling for a shutdown. 7 chemical enterprises have switched to producing nonchemical products.

Yangtze River shutdown spurs upgrades and development in chemical industry

Transforming and upgrading industries in Yichang is a great opportunity for this city. Two chemical industrial parks, namely Yidu Chemical industrial park and Zhijiang Yaojiagang chemical industrial park, have been built with high standards. Projects and construction promote the development of the chemical industry in Yichang. The chemical industry in Yichang will enter a new phase of being more precise, environmentally friendly and international.

From January to October 2019, the gross value of industrial output of 80 chemical enterprises in Yichang has reached to RMB 62.5 billion, which is an increase of 11.9% compared to the same period last year. The annual production volume of phosphamidon in Yichang is strictly less than 6 million tons. Fine chemical production accounts for 35% of the chemical industry in the city, which accounted only 13.2% of the chemical industry in 2016.

Yichang’s natural phosphate supply brought chemical industries to the Yangtse

According to the information released by Chinese authorities, Yichang holds 2.7 billion tons of phosphate rock resources, accounting for 61.3% of all phosphate rock resources in Hubei province and 13.6% of all phosphate rock resources in China. Yichang ranks second in total ore volume out of the eight major phosphorus mining areas in China. Over the past ten years, different sizes of chemical enterprises have been built in Yichang alongside the Yangtse River. In general, the closer a chemical enterprise is built to the Yangtse River, the more economic benefit it might gain. Additionally, some merchants considered the Yangtse River as a natural place for releasing effluent. Drains for releasing effluent from the chemical enterprises were built privately, causing environmental contamination.  

In 2016, the gross productive value of the chemical industry accounted for 30.6% of the city’s industrial output. Also, in 2016, the government of Yichang began its implementation of the plan for industrial transformation and upgrade. 

For more information on China’s chemicals market, please check our chemicals market research.

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