MIIT/Federation: Building a Platform to Address Two Major Challenges Faced by Relocating Chemical Enterprises

　On December 20, the “Park–Enterprise Matching and Industry–Finance Coordination Conference for Relocation and Renovation Projects of Hazardous Chemical Production Enterprises,” co-hosted by the Ministry of Industry and Information Technology and the China Petroleum and Chemical Industry Federation, was held in Chongqing. The conference aimed to establish a platform for connecting relocating enterprises, industrial parks, and financial institutions, addressing two major challenges faced by these companies: difficulty gaining access to industrial parks and high financing costs. During the event, several enterprises signed agreements on-site with industrial parks and financial institutions.
　　“At this stage of the relocation effort, the main challenges are securing suitable industrial parks and addressing funding shortfalls,” said Chen Kaimin, Deputy Director-General of the Raw Materials Industry Department of the Ministry of Industry and Information Technology. According to him, since the comprehensive launch of the relocation and upgrading of hazardous‑chemical enterprises in 2018, a combination of financial, fiscal, and tax measures has enabled the relocation program to exceed its planned targets. In particular, progress in the Yangtze River Economic Belt has outpaced the national average, with 70% of the overall objectives already accomplished. Moving forward, ensuring adequate industrial park capacity and stable funding sources will be critical.
　　“Our relocation is not simply a matter of moving the factory from one location to another, nor is it a mere replication of existing facilities. Rather, it aims to relocate in a way that ensures safety, protects the environment, and enhances competitiveness—transforming the process into an opportunity for quality improvement and industrial upgrading,” noted Chen Kaimin. He emphasized that relocating enterprises should seize this opportunity to elevate their scale and sophistication through technological innovation, structural optimization, product upgrades, strategic upstream–downstream integration, mergers and reorganizations, and differentiated development, thereby increasing value-added and achieving transformative growth. At the same time, he stressed that industrial parks must strengthen their capacity to accommodate such moves, improve supporting infrastructure, and adopt a forward‑looking planning approach to achieve rational spatial layouts and integrated, synergistic industrial chain development—placing less emphasis on sheer size and more on fostering a conducive environment for small and medium‑sized specialty chemical firms with advanced technological capabilities. He also expressed hope that financial institutions would give greater consideration to “small but exquisite” projects across various sectors, making it easier and more affordable for these SMEs to access financing.
　　Zhou Zhuye, Vice President of the China Petroleum and Chemical Industry Federation, stated that undertaking the relocation of hazardous‑chemical enterprises into industrial parks represents a rare opportunity for chemical parks. Parks should seize this chance to further optimize their spatial layout and industrial structure, while enhancing the intrinsic safety and environmental protection standards of chemical enterprises. Park development must comprehensively account for factors such as inter‑plant interactions, product categories, production processes, mutual supply of raw materials, utility infrastructure support, and emergency response capabilities, thereby enabling rational functional zoning, sound overall planning, and the creation of high‑standard chemical parks. The Federation attaches great importance to the relocation and upgrading of hazardous‑chemical enterprises located in densely populated areas and has established a task force comprising the Petroleum and Chemical Industry Planning Institute, the China Chemical News Agency, the Nitrogen Fertilizer Association, the Chlor‑Alkali Association, and others. Pesticide A joint working group on the relocation and upgrading of hazardous chemical enterprises, comprising representatives from industry associations, the Chemical Industry Environmental Protection Association, park management committees, and other relevant entities, is carrying out related tasks.
　　Representatives of the chemical industrial park expressed keen interest in hosting relocating enterprises. Ran Hong, Deputy Director of the Chongqing Changshou Economic and Technological Development Zone Management Committee, stated that Chongqing serves as a key strategic hub for the Western Development Initiative and a pivotal link between the Belt and Road Initiative and the Yangtze River Economic Belt. In line with its national strategic positioning, the Changshou Development Zone adheres to the principles of economic development, aligns with industry‑driven trends, and actively welcomes relocating companies. It is building five major industrial clusters—comprehensive chemicals, new materials and energy, and electronic information—while upholding the commitment to “get today’s work done today” to foster a favorable business environment for these enterprises.
　　Financial representatives also shared their concerns and perspectives on the support criteria for the chemical industry. A representative from the China Development Bank told a reporter from China Chemical News that the hazardous‑chemical enterprise relocation and upgrading projects currently supported by the bank all exhibit three key characteristics: first, the projects must align with the national industrial development plan and relevant strategic frameworks, qualifying as initiatives to optimize industrial spatial layout; second, they must meet the requirements for siting in designated chemical parks and have clearly identified host parks; and third, the enterprises must demonstrate significant efforts to upgrade their operations during the relocation process. In addition, the China Development Bank actively collaborates with enterprises to secure favorable local government policies, ensuring smooth project implementation and mitigating lending risks.
　　Du Wei, Deputy General Manager of Ping An Technology, told a reporter from China Chemical Industry News: “Based on our years of research into the petrochemical industry, safety risk management remains the most pressing issue facing the sector. At present, the coverage rate of liability insurance for workplace safety is inadequate, and chemical‑hazardous‑material producers must strengthen their safety risk‑management capabilities during relocation to prevent accidents.”
　　This conference brought together nearly 500 representatives from enterprises, industrial parks, financial institutions, and other organizations. During the event, companies including Nanjing Meixingpeng Industrial Co., Ltd., Yifan Bio, and Zhangjiagang Gangda New Materials signed on-site agreements with the Changshou Economic Development Zone, the Ningdong Energy and Chemical Base in Ningxia, and the Jining New Materials Industrial Park. Meanwhile, enterprises such as Jinchuan Group Nickel Salt Co., Ltd. and Anhui Bayi Chemical entered into on‑site cooperation agreements with financial institutions including the China Development Bank, Lanzhou Bank, China Construction Bank, and Shanghai Pudong Development Bank.

Source: China Chemical News