On July 7, a reporter learned from the Department of Industry Policy at the National Development and Reform Commission that in response to the State Council's "Circular on Accelerating the Adjustment of the Industrial Structure with Overcapacity," significant progress has been made in the structural adjustment of the calcium carbide industry. As a result, the National Development and Reform Commission has decided to implement industry access management for calcium carbide production companies starting this month. This move marks a major step toward ensuring the sustainable and healthy development of the sector.
According to the National Development and Reform Commission, all calcium carbide producers must now meet specific "access conditions" outlined in the 2004 No. 76 notice. These include standards related to production technology, energy and raw material consumption, pollution emissions, and safety measures. Companies must conduct self-inspections and submit applications for industry access. Internal calcium carbide units within chlor-alkali enterprises that are independent legal entities are also required to apply. Provincial Development and Reform Commissions or Economic and Trade Commissions will be responsible for receiving these applications, working alongside environmental protection, quality supervision, and safety departments to verify compliance with the access criteria. All verified applications must be submitted to the National Development and Reform Commission by October 31, 2006. The commission will then organize industry associations and experts to conduct random inspections and publish an official list of compliant companies.
A representative from the China Calcium Carbide Industry Association told reporters that the current market for downstream products like PVC is strong, but many projects are being developed without government approval, leading to a surge in overcapacity. This year, calcium carbide output is expected to reach 9 million tons, while total national capacity exceeds 20 million tons. Many existing plants still face challenges such as outdated equipment, high energy consumption, and inadequate environmental controls. This poses a serious challenge to both power supply and environmental sustainability. The new policy is seen as timely and essential to address these issues.
Furthermore, companies that pass the access audit will be subject to annual inspections. Those failing to meet the requirements will face increasing tariffs and sewage charges, eventually leading to shutdowns. The industry association is also preparing more detailed management strategies, including organizing a meeting to promote the implementation of these new regulations.
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