Hazardous Chemicals Firms to Relocate

General Office of the State Council of China recently issued Guiding Opinions on Propelling Relocation and Transformation of Hazardous Chemicals Enterprises in Urban Densely Populated Areas.
Hazardous chemicals firms will transform, relocate from densely populated areas to dedicated chemical parks, or be shut down by 2025 if they fail to meet standards for safety and hygienic protecting distances. These actions will reduce environmental risks and avoid hazardous chemical accidents. Hence, the safety of residents and enterprises can both be ensured. Further, transformation and relocation are consistent with China’s rapid urbanization.
The document sets forth six tasks: 1) organize assessment; 2) plan for relocation and transformation; 3) implement plans; 4) strengthen safety and environment management during relocation and transformation; 5) eliminate various risks; 6) propel industry transformation and upgrading.
While giving financial support, the government encourages owners of eligible relocation and transformation projects to employ financing channels, like bank loans, issuance of corporate bonds, medium term note and short-term financing bonds. Further, the government will enact supportive policies, such as management methods on income taxes generated during policy-based relocation, related land policies, etc.