MIIT/Federation Paves the Way to Tackle Two Major Challenges Faced by Relocated 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 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 development 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 transition as a chance to elevate their standing and scale 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 synergistic industrial‑chain development—focusing on technological excellence rather than sheer size—to provide viable operating space for small and medium‑sized, high‑tech specialty chemical firms. He also expressed hope that financial institutions would give greater consideration to “small but exquisite” projects across various sectors, making financing more accessible and affordable for these SMEs.
　　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, and to enhance the intrinsic safety and environmental protection standards of chemical enterprises. Park development must comprehensively consider factors such as the mutual interactions among enterprise facilities, product categories, production processes, inter‑plant material supply, utility infrastructure support, and emergency response capabilities, so as to rationally plan functional zones, refine the overall layout, and build 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 task force on the relocation and upgrading of hazardous chemical enterprises, comprising representatives from the association, the Chemical Industry Environmental Protection Association, the industrial park committee, and other relevant entities, is carrying out related work.
　　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 and aligns with industry‑driven trends, actively attracting relocated 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 chemical industrial parks and have clearly designated receiving parks; and third, the enterprises must demonstrate significant efforts to upgrade their technologies and processes during relocation. In addition, the China Development Bank actively collaborates with enterprises to secure favorable policies from local governments, 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