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China Earmarks Industrial Parks as Key in Chemical Sector Transformation

More than 80% of hazardous chemicals manufacturers need to complete relocation and transformation before the end of 2020. The evaluation and certification of chemical parks will be a priority governmental target going forward. The construction and access standards of chemical parks will be strictly formulated and infrastructure will require improvement.

On 23rd May, 2019 China Chemical Industry and Chemical Park Forum opened in Huizhou, Guangdong. According to several high profile speakers the chemical industry will be subject to the most stringent remediation ever and the construction of and access to chemical parks will be strictly regulated.

Figure 1. 2019 China Chemical Industry and Chemical Park Forum. Picture source: www.hbzhan.com

By the end of 2018, there were 676 industrial parks, with the petrochemical sector accounting for the most significant proportion of enterprise in these parks. 33 were large chemical parks with an output value of 500-100 billion yuan, according to China Petroleum and Chemical Industry Federation (CPCIF). “China chemical park has entered a new stage of high-quality development”, said Li Shousheng, president of CPCIF.

Figure 2. Li Shousheng, president of CPCIF. Picture source: www.hbzhan.com

However, there are many challenges currently facing development of chemical parks, such as the constraints of the international environment, safety and environmental uncertainties and innovation. What’s more, it is also necessary to pay attention to the prominent problems facing chemical parks, such as lack of adequate regulation and inadequate prioritization of social responsibility. According to Li. “China needs to explore new ways to develop chemical parks”.

Hazardous chemical manufacturers in densely populated urban areas that do not meet the minimum safe distance requirements are required to be upgraded to local standards, relocated to standard chemical parks or closed down according to the national guidance [1]. Small and medium-sized enterprises (SMEs) and large enterprises with major risks are required to complete the relocation and transformation by the end of 2020, and the rest should complete before the end of 2025. These changes will impact the whole chemical industry.

More than 80% of hazardous chemicals manufacturers need to relocate and/or transform before the end of 2020. According to Han Jingyou, researcher of Ministry of Industry and Information Technology (MIIT), “chemical parks are key to relocating chemical manufacturers and stimulating transformation. The construction of these chemical parks has a significant impact on the development of the enterprises located within. Therefore, more attention should be paid to the construction of chemical parks”. The evaluation and certification of chemical parks will be a priority government target this year. At the same time, the construction and access standards of chemical parks will be strictly formulated and infrastructure will require improvement. The construction of the necessary public utilities for water supply, power supply and gas supply in the chemical parks should be accelerated, and the sewage treatment plants, hazardous chemicals and waste treatment facilities and other facilities should be constructed as soon as possible, too.

Figure 3. Han Jingyou, researcher of MIIT. Picture source: www.hbzhan.com

Addressing the problem of SMEs being refused access to chemical parks, Han also called on the parks to reserve spaces for them, “chemical parks with vacancies can lift restrictions on minimum investment level,” he said “ SMEs in a leading position in their respective markets should be fully considered and given support to relocate to chemical parks.”

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