Sinochem Fuling suspends production for relocation 11-26-2019

According to a recent report from Chongqing, Fuling Sinochem, a large-scale chemical industry  located in the Fuling district of Chongqing next to the Yangtze river, completely ceased all operation on October 31 and will move to Baitao Industrial Park. At present, all factories in the Fuling district located within one kilometer of the Yangtze river have ceased operation, as a part of larger effort to protect the ecosystem within the river.

Fuling Sinochem is located in the Fuling district of Chongqing on the south side of the Yangtze River. The company was founded in 1966, originally as a small-scale fertilizer production enterprise. It grew steadily and eventually reached a production level of 1.5 million tons of fertilizer per year, becoming one of the key enterprises in China. The company was one of the top ten producers of phosphate fertilizer in China, producing RMB 2.3 billion worth of phosphate fertilizer in 2018 and earning a profit of RMB 76 million. Furthermore, during the Fuling Sinochem’s 53 years operation, the company brought major economic development to its area. However, in order to protect the ecosystem of the Yangtze river and take steps toward greener environmental policies, Fuling Sinochem will shut down and move its operations to another location.


Fuling Sinochem to join environmental recovery project

According to a representative from Fuling Sinochem, the company will continue to improve the environment of the Fuling district during the time when the company ceases operation. Currently, Fuling Sinochem has invested nearly RMB 100 million into recovering the hilly grassland where phosphogypsum is disposed and build a water treatment plant for removing phosphogypsum. In the disposal area for phosphogypsum, approximately 72 acres of hillside grassland have been recovered, and approximately 45 acres of hilltop grassland have been recovered. The water treatment plant for phosphogypsum removal has been constructed and is already in use. Next, Fuling Sinochem will spend 18 months to demolish the machines in its factories, and arrange for land management, management of the phosphogypsum disposal area, as well as green land improvement, in order to improve the ecosystem in the Fuling district. In order to successfully relocate Fuling Sinochem, which is a large-scale chemical industry with 18 sets of machines, the Fuling district authorities made a plan to shut down the company in May. After being evaluated by experts twice, the company decided to implement relocation training in June. Fuling Sinochem officially ceased operation at the beginning of October and the machines in the factory were finally turned off on October 31. 


Fuling Sinochem to invest RMB 3 billion in relocated enterprise

As Fuling Sinochem relocates its factory, the company will have a second opportunity to establish itself as a key business. The company has chosen the Baitao Industrial Park of the Fuling district as its new base of operations and plans to complete relocation and begin construction of the new factory in December. Fuling Sinochem plans to begin operating again by the end of 2021 and plans to invest RMB 3 billion in their new enterprise. The company will use the world’s most highly developed phosphoric acid technology, assemble the necessary materials for plant growth, and develop a 200,000 ton-per-year fine phosphate salt and new-type fertilizer project. Fuling Sinochem plans to use this opportunity to improve its business and invest its future endeavors.

 

For more information on China’s fertilizer market, please check our Phosphorus Industry China Monthly Report

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