Published on October 4, 2017

China has a massive plan of relocating its chemical units away fro the cities by 2025. According to state China’s council the country should immediately start shifting units from cities. The small size plants shifting will commence from 2018 and has to be completed by 2020. For large sized units the time limit is 2025. This process requires huge funds and investment. Lack of funding is the primary problem faced by manufacturers. Industry players believe the Chinese government must foot the total bill, citing that in most cases, the plants have been operating for years before the cities expanded.

Industry sources said actual financial support from the government was usually less than 10% of the total capital required and comes in the form of land, low interest rates on loans and tax breaks.
It’s too difficult for companies and governments to agree on terms of relocating. Who should pay for the bill? There’s no such a law that defines… responsibilities. No one would compromise,” said a source from the economic and information commission of Sichuan province.

Plants up for relocation with an original investment or current value of less than CNY100m receive no cash subsidies from the government.

Some 51 chemical plants in Sichuan need to be relocated, requiring a total capital outlay of CNY23.8bn, according to media reports.

Only two of the total have completed the move, with two others underway, while the rest have no definite timelines.

In Shandong province, some 185 plants have been identified for relocation. Of which, 70 have started the process, according to a local government official.
The eastern province houses 9,505 chemicals producers, of which 2,485 are categorised as producing dangerous chemicals, the official said.