Shandong to Strictly Limit Capacity in 9 Chemical Sectors

Shandong is to strictly control capacity expansion in nine chemical sectors suffering from excess capacity, but to support firms in places with good basic conditions to prepare for new plans regarding petrochemical bases, ethylene, arene, etc., as detailed in Notice on Propelling Petrochemical Industry to Adjust Structure, Transform and Increase Benefits recently issued by the Shandong provincial government.
The nine sectors are oil refining, tires, urea, ammonium acid phosphate, calcium carbide, caustic soda, polyvinyl chloride, soda ash and yellow phosphorus. Land (or sea area) acquisition, energy assessment, environmental impact assessment and new credit business conducted by related government departments or financial institutions will not be open to illegal capacity expansion projects. Equivalent or decrement replacement methods will apply to qualified technical upgrade projects. Approval and filing procedures of all chemical projects (new initiatives, reconstruction and expansion) must comply with the Plan on Safe Production, Transformation and Upgrading of Chemical Industry in Shandong Province.
New techniques like clean production and intelligent control are strongly recommended when upgrading the traditional chemical industry. Oil refineries are strongly urged to construct clean oil production equipment related to hydrocracking, isomerization and alkylation to propel deep refining. Further, smart factory floor equipment and other automated equipment are to become increasingly common in key areas including petrochemicals, rubber tires, marine chemistry, coal chemicals.