On May 22, 2018, a government document revealed that pharmaceutical, pesticide and dye intermediate projects in the chemical parks of coastal cities Lianyungang, Yancheng and Nantong are classified as “prohibited projects, no approval to be granted” or “phase out, already built projects to be closed down at a given time.”
The document is a draft dated May 16 for discussion. According to the source of information, the draft may be finalized by the end of this month. It is said that with reference to pollution control measures in some provinces, production enterprises subject to upgraded environmental compliance requirement comprise three categories: process to be upgraded with non-stop production, process to be upgraded with stop of production, process to be phased out.
Lianyungang Guanyun Industrial Park accommodates 110 chemical works, among which the three subsidiaries of Runtu appear to be the largest ones, while the others are all smaller enterprises. Guannan Industrial Park is the sole provincial-level chemical park of Northern Jiangsu, with the presence of 94 chemical works, focusing on dyestuff, pesticide and pharmaceutical intermediates, which have caused heavy pollution.
In case the document is put into effect, the pharmaceutical, pesticide and dye intermediate production facilities in the chemical parks of the coastal cities will be closed down, while the pharmaceutical, pesticide and dye intermediate production in the three prime chemical parks of Lianyungang and Yuncheng currently under suspension for correctional action will see no chances of resumption of production.