Jiangsu has set off an environmental storm in the chemical park, and many listed company subsidiaries stop production for rectification

"Global Coatings Network News"

As a major chemical province, Jiangsu has been plagued by environmental issues.

According to the requirements of the above notice, the subsidiary (branch) companies in the chemical park of Duigougang Town, Lianyungang where the company is located have all stopped production, and the companies involved in the suspension are Jiangsu Yabang Dyestuff Co.
, Ltd.
Lianyungang Branch, Jiangsu Huaer Chemical Co.
, Ltd.
, and Lianyungang Yabang Heating Co.
, Ltd.
, Lianyungang Yabang Sulfuric Acid Co.
, Ltd.
, Jiangsu Daobo Chemical Co.
, Ltd.
, Jiangsu Jiamai Chemical Co.
, Ltd.
, Jiangsu Henglong Crop Protection Co.
, Ltd.
, Lianyungang Jindun Agrochemical Co.
, Ltd.

Jiangsu Wuzhong also issued an announcement stating that the wholly-owned subsidiary Xiangshui Henglida Technology Chemical Co.
, Ltd.
temporarily suspends production in accordance with the requirements of the relevant departments on the park and all chemical companies in the park to fully suspend production to investigate and rectify environmental problems.

At the same time, Lianhua Technology issued an announcement stating that its subsidiaries, Jiangsu Lianhua Technology Co.
, Ltd.
and Lianhua Technology (Yancheng) Co.
, Ltd.
, temporarily suspend production in accordance with the requirements of relevant departments on the park and all chemical companies in the park to fully suspend production to investigate and rectify environmental problems.

Huifeng also announced that its subsidiaries Lianyungang Huatong Chemical Co.
, Ltd.
, Jiangsu Jialong Chemical Co.
, Ltd.
and Lianyungang Zhicheng Chemical Co.
, Ltd.
received the "Notice" from the Guannan County Government on April 28, 2018 and were required to stop production.
Rectify.

Stop production or increase the price of chemical materials

In the eyes of industry insiders, these discontinued subsidiaries will not only affect the operating performance of listed companies, but the most important thing is to impact the industry chain they belong to.

It is worth noting that Yabang, the company with the most subsidiary shutdowns this time, is a domestic dye manufacturer and occupies an important position in the domestic dye market, and the dye is called the "food" of the printing and dyeing industry.
However, the current disperse dye production and processing enterprises have stopped production on a large scale due to the exposure of Lianyungang Chemical Park.

Regarding the possible impact of the subsidiary’s suspension of production, the reporter learned from Yabang that some companies that have been suspended account for a certain proportion of the supply of the domestic dyestuff market.
The suspension will have an impact on the supply of the market to a certain extent.
This will cause the price of dyes to rise.

Affected by the suspension of production, according to data from the China Dyestuff Industry Association, the price of anthraquinone has soared since April 26.
As of April 30, it has soared to 10,000 yuan/ton, directly leading to the use of anthraquinone as the main raw material.
For the disperse dyes, Brilliant Blue 2BLN (56 blue) is correspondingly increased to 40,000 yuan/ton, turquoise blue S-GL (60 blue), brilliant red FB (60 red), purple HFRL (26 purple), etc.
in the "May Day" Later, the corresponding increase to 10,000 yuan / ton, indirectly led to the price increase of the dispersed ash N100% using 56 blue as the raw material.

In this regard, Dr.
Xu Xin, who has been engaged in chemical research and development for a long time, introduced to reporters that these discontinued subsidiaries are carefully sorted out.
Many of them are important companies in the upstream industrial chain of the industry.
These companies have ceased production one after another, which has a great impact on the industrial chain.
It will cause problems for the downstream supply, and will cause the price of raw materials to rise to a certain extent.