At the end of June, heavy rains frequently occurred in Jiangsu Province during the Meiyu season. In the weather forecast, the next few days in Rudong County, which is close to the Yellow Sea, will hardly see sunny days.
In Yangkou Port Economic Development Zone of Rudong County, Jiangsu Changjiu Agricultural Science and Technology Company, a chemical plant with an annual output value of over 500 million yuan, has temporarily stopped production. The company recently received a notice from the Emergency Management Bureau of Rudong County, Jiangsu Province, and the Administrative Committee of the Economic Development Zone of Dongyangkou Port. The company needs to suspend production in order to deal with potential safety hazards. Changjiu Agricultural Science and Technology Co., Ltd. is a subsidiary of ST Changjiu, a listed company, with an acrylamide production line of 50,000 tons per year. After the shutdown and rectification, the production safety supervision department also needs to examine and approve to resume production.
Wind data show that there are 337 chemical listed companies in A share. According to incomplete statistics from Beijing News, from March to June 2019, nearly 20 listed chemical companies, such as ST Changjiu, Fengshan Group and Nanjing Chemical Fiber Company, issued a stop-production announcement. Zhao Hua, a chemical expert in Jiangsu Province (not his real name), told reporters that at present, Nantong, Yancheng and other places of chemical industry collective shutdown and rectification, follow-up production situation needs to wait for the collective acceptance of the government. By the end of June, Jiangsu Province had completed a full round of safety inspection for chemical enterprises. Behind some companies waiting for resumption of production, some companies choose to relocate, and some listed companies are already seeking restructuring.

Nearly 20 listed chemical enterprises involved in shutdown, mostly concentrated in Jiangsu Province.
On June 27, ST Changjiu said that its Jiangsu Changjiu Agricultural Sciences found potential safety hazards and needed to stop production in order to add automatic shutoff valves or interlocking devices.
Changjiu Agricultural Science is located in Rudong Yangkou Port Economic Development Zone, Jiangsu Province. ST's long-term operation largely depends on Changjiu Agricultural Science.
The data show that the operating income of ST Changjiu in 2017 and 2018 is 553 million yuan and 528 million yuan respectively, and the net profit is 26.13 million yuan and 8.81 million yuan respectively. In 2018, the operating income of Changjiu Agricultural Science and Technology Company was 510 million yuan, and its net profit was 17.64 million yuan.
Stopping production directly affects the sustained operation of ST Changchang. ST Changjiu said that the company is still unable to adopt a decentralized strategy to reduce the risk of shutdown. If the local safety supervision department approves the resumption of work beyond the company's expectations, the negative impact of temporary suspension on the company's business income will increase year-on-year with the increase of actual suspension time. If the company has not been granted the resumption of work for a long time, the company's sustainability will face certain risks.
On June 28, a reporter from Beijing News called ST Changjiu, but the phone was not connected. Then contacted Changjiu Agricultural Science and Technology, the other side said that the company has stopped production and needs to be rectified & ldquo; new automatic shutoff valve or interlocking device & rdquo; has been purchased and installed, & ldquo; like the water valve at home is broken, (re) installed just like & rdquo;.
According to the ST Changjiu announcement, Changjiu Agricultural Science and Technology strives to complete the preliminary installation and commissioning work by 30 June, and plans to complete the aforementioned safety device rectification work within 15 days from the announcement date, and formally submit the application for resumption of production to the local safety production supervision department after the completion of the rectification.
Changjiu Agricultural Science said that the company has submitted acceptance reports and is still waiting for acceptance by relevant departments. For the time of resumption of labor, it is waiting for the local government to inform, & ldquo; (possibly) the whole round of inspection is over. & rdquo;.
Zanyu Technologies, a listed company in Rudongyangkou Chemical Industrial Park, announced in May that its holding subsidiary, Nantong Kaita Chemical Technology, had stopped production for inspection and rectification since April 9.
Beijing News reporter found that since March this year, at least 17 listed chemical companies announced that the company or its subsidiary companies involved in shutdown, and most of the shutdown factories were concentrated in Jiangsu. This is related to the regional distribution of listed chemical companies. According to Wind data, according to Shenwan industry classification, there are 337 chemical enterprises in A share. Among them, there are 61 in Jiangsu Province, accounting for 18.10%; 43 in Zhejiang Province, accounting for 12.76%; 36 in Shandong Province, accounting for 10.68%; 34 in Guangdong Province, accounting for 10.09%.
In Yancheng, Jiangsu Province, the listed companies Fengshan Group and Huifeng Agriculture stopped heating due to the safety overhaul of the heating company in the park. The two companies temporarily suspended the production of the original drug synthesis workshop, and used the suspension to carry out safety production inspection. In addition, Huaian Chenhua New Materials Co., a wholly-owned subsidiary of Yangzhou Chenhua, a listed company, has stopped production since May 28 this year.
When the chemical industry carries out rectification and improvement, large-scale verification should be carried out in many places.
Behind the shutdown of many listed companies or subordinate companies in Jiangsu Province is the local government's actions to improve the chemical industry.
Zanyu Science and Technology said in the announcement that the suspension of production and rectification is to implement the requirements of the Jiangsu Provincial Committee Office of the Soviet Union (2019) 96.
The above-mentioned & ldquo; Soviet Office (2019) No. 96 & rdquo;, refers to the notice issued by the General Office of Jiangsu Provincial Committee and the Provincial Government on the issue of "Jiangsu Province Chemical Industry Safety and Environmental Protection Improvement Program". The announcement shows that in order to learn from the lessons of Xiangshui Tianjiayi Chemical Industry Co., Ltd. & ldquo; 3 & middot; 21 & rdquo; especially major explosion accidents, the provincial Party Committee and the provincial government decided to immediately carry out the actions of improving the safety and environmental protection of the chemical industry in the province.
After the issuance of the documents, Jiangsu Province began to further investigate the enterprises below the scale and assess the safety and environmental risks. All enterprises that fail to meet the standards should be closed and withdrawn by the end of 2020. Enterprises that meet the standards should be encouraged to enter the chemical park (concentration area) for development.
In fact, as early as before the sound water accident, Jiangsu governments at all levels have put forward inspection and control requirements for the chemical industry. In November 2018, Jiangsu Suzhou, Suqian and other places have already started chemical industry-ldquo; four batches of-rdquo; special action, namely-ldquo; shutdown, transfer, upgrade and restructure a batch of-rdquo;.
Zhao Hua, an industry expert who accompanied the local government to investigate chemical enterprises, told reporters that since the explosion of the sound water, it has followed the relevant departments to run thousands of enterprises in a month to conduct safety checks on enterprises.。
Several listed companies mentioned the Jiangsu Province's rectification action. Their companies cooperated with the government to inspect and shut down. Some companies were found to have potential safety hazards in the inspection.
In Xinyi City, Jiangsu Province, Lanfeng Biochemical Company received a special inspection of dangerous chemicals from the Ministry of Emergency Management on April 28, and found that the company's phosgene leakage absorption and destruction system did not achieve automatic control. On April 30, the company received a decision issued by Xinyi Emergency Management Bureau to suspend production temporarily. In addition, Australian Ocean Health and Zhejiang Jihua's subsidiary companies in Jiangsu also cooperated with the inspection, and shut down production successively.
In Shandong Province, adjacent to the north of Jiangsu Province, enterprises are also affected. Wanhua Chemicals previously announced that its PDH plant in Yantai Industrial Park began parking overhaul on April 1; Nikkei Chemicals was included in the joint punishment of safety in production and dishonesty-ldquo; Blacklist & rdquo; due to the strengthening of the control of bromine products by public security departments, Lubei Chemicals also issued relevant business data announcements at the request of the government.
On June 26, the General Office of the Shandong Provincial Government issued a list of the first batch of key chemical monitoring points, focusing on monitoring the future construction and expansion of chemical projects. In principle, it can only be carried out in the publicly addressed production plant areas, while other production plant areas may not implement new and expansion projects.
On April 13, * ST Tianhua announced that all production units of Ningxia and Ningxia Chemical Co., Ltd., a wholly-owned subsidiary of the company, were stopped and repaired normally on April 10, and were expected to complete the repairs and resume normal operation on May 10.
In Liuzhou, Guangxi, after the Xiangshui Incident, the emergency management department went to * ST Liuhua to inspect the safety production work, pointing out that there are potential safety problems in the company's production. Since March 30, the relevant production system of Liuzhou Department (that is, Liuzhou City District) has been shut down.
In Wuhan, Hubei Province, the Wuhan plant of Dinglong Co., Ltd. was inspected by the South China Inspection Bureau and the environmental protection management department on May 25. After self-examination, the company found that there were problems in the sewage treatment facilities, and then stopped production and implemented rectification by itself.
After the throes: some have voluntarily ceased to produce, some have sought to reorganize
Under the storm of chemical industry rectification, some companies announced the resumption of production. On June 27, the chemical announcement in Jarbon, which had been shut down for nearly two months, said that Nantong had received a written license from the government to resume production and agreed to resume production. Jacobin Chemicals said that after the resumption of production, the company will rationally allocate production capacity to minimize economic losses during the shutdown period.
Lier Chemicals, which stopped production in November 2018, announced on May 14 this year that its annual production line of 1,000 tons of fluoroacetylene and its supporting facilities will resume trial production with the approval of the Guang'an Safety Production Supervision Bureau after on-site acceptance by the opening sub-bureau.
Reporters noted that most of the companies that still stopped production were still waiting for the government's policies, and some companies began to choose industrial transfer or asset restructuring.
Funing Aoyang Technology, a subsidiary of Australian Health Holdings, has stopped production since March. On June 25, Australian Ocean Health said that at present, Funing Australian Ocean has the conditions to resume production. However, since the second half of 2018, the market environment of viscose staple fibers has continued to be depressed, which has been at a historically low level. According to the current market price of viscose staple fibers, the gross interest rate of the first and second production products of Funing staple fibers has been negative. Stopping production is more economical than resuming production.
Zhejiang Jihua also announced that its company, Jiangsu Jihua, has already met the conditions for resumption of production in terms of safety, environmental protection, fire control management, process and equipment. However, it still chooses to continue to stop production in light of government policies, market environment and the company's own actual situation.
Zhao Hua told the Beijing News that many companies in Jiangsu Province are waiting for the government's overall acceptance, & ldquo; the government's rules have not yet come out, so there is no way to acceptance now.
Compared with passive waiting, some companies began to transfer industries. On June 26, Zhejiang Wansheng Co., Ltd. announced that in response to the government's urban planning, the company planned ahead of schedule to integrate its capacity, gradually transferring its capacity to Duqiao Medical Park, & ldquo; as of June 25, 2019, Wansheng Science and Technology had stopped production, and all its capacity had been transferred to Duqiao Medical Park. & rdquo;
It is noteworthy that, in the context of the overall reshuffle of the chemical industry, there are also listed companies seeking mergers and acquisitions and reorganization for their subordinate chemical enterprises.
Sinochem International, a listed company, began to integrate its chemical industry. In August 2018, the company announced that its subsidiary company, Yangnong Chemical, had transferred 100% of the shares of its wholly-owned subsidiaries, Sinochem Crop Protective Products Co., Ltd. and Shenyang Sinochem Pesticide Chemical Research and Development Co., Ltd. in cash. The transaction price of the underlying assets was set at 900 million yuan.
Some chemical listed companies have changed their controlling rights. In the announcement of Rike Chemistry on January 7 this year, controlling shareholder Zhao Dongri signed the Share Transfer Agreement with Jinhu Investment, which will lead to the change of controlling shareholders and actual controllers of the company.
In June 2018, Lier Chemistry received a letter from controlling shareholder Sichuan Jiuyuan Investment Holding Group Co., Ltd. indicating that the actual controller intended to change. In December 2018, Lanfeng Biochemical Co., Ltd. of Jiangsu Province also announced that it would change its controlling shareholders and actual controllers after receiving notifications from controlling shareholders such as Suhua Group, Sino-Shanxi Nuclear Industry Group and Shaanxi Golden Nuclear Co., Ltd.
Zhao Hua himself is a senior manager of a listed company. He believes that under the current environment, some listed chemical enterprises do not have the advantage of restructuring and merging other enterprises, whether listed companies or unlisted chemical enterprises, & ldquo; now they all hope to be taken away, state-owned enterprises, state-owned enterprises and state-owned enterprises. For the acquisition of large enterprises with capital background, or for the acquisition of large enterprises abroad, the state-owned enterprises will be more standardized and unified management, such as China Chemical Industry, Sinochem Chemical Industry, Sinochem Import and Export. & rdquo;
& We used to go to chemical industry, but now we all want to go out. & Zhao Hua, who has been working for more than 30 years, laments to reporters.
(New Beijing News reporter Li Yunqi)