Shanxi Unveils Rejuvenation Plan for Coal-based Chemical Industry     

The coal-rich Shanxi province has set a revitalization plan for its coal-based chemical industry with several new policy measures, the National Development and Reform Commission said on June 14th.
   The plan called for greater spending in technology upgrade and innovation. The provincial government plans to set aside a special amount of the province's coal sector sustainable development fund to support certain projects and research work. They include the research and development of the gasification technology for low-quality coal with high sulfur content, ash content and ash melting, and the consolidation of coal chemical design and research institutes in the province and the establishment of a national level coal chemical engineering technology center. The money will also fund construction of fine chemical projects using coal tar and benzole as input, and to help coal chemical companies upgrade, develop and import in technologies in the forms of subsidized loans, capital injection and subsidy in investment. It also encourages coal chemical companies to bring in advanced waste water treatment technologies and build facilities which enable comprehensive use of water resource.
   Meanwhile, Shanxi is creating large coal-based chemical groups by alliances, mergers and acquisitions, restructuring between businesses. It will give preferential policies to newly-created large companies deemed competitive, such as allowing them to participate in the development of nearby coal reserves and build bases for feedstock supply. Such companies would also enjoy priority in gaining approval for certain coal-power-chemical integrated projects and gain key support in fields ranging from planning, credit, land, environment and power usage.
   Industry watchers say the measures would have a far-reaching impact on the ascendant coal-based chemical industry for China.