17 more cement plants bite the dust in Hebei

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China: The demolition of 17 more cement plants in Shijiazhuang, Hebei province, began on 17 February 2014, two months after the first batch of demolitions to improve air quality.

"After the second batch of demolitions is finished in March 2014, we can meet the target of reducing excess capacity three years ahead of schedule, reducing production capacity by 40%," said Wang Liang, the mayor of Shijiazhuang. Hebei was hit by many smoggy days in February 2014, causing serious pollution. On 17 February 2014 the air quality index exceeded 200, classed as 'very unhealthy' by the US Environmental Protection Agency (EPA).

The demolition of 18 cement grinders and 377 storage bins at the 17 plants will be completed by the end of March 2014, reducing production capacity by 9.1Mt/yr.

To control pollution, the provincial government has announced goals for cutting excess capacity in high-polluting industries, including cement production, in every city. Shijiazhuang, the provincial capital, must dismantle 15Mt/yr of cement production capacity by 2017.

The two batches of demolitions have targeted 35 plants, resulting in direct economic losses of US$180m and affecting 3780 workers. "We may suffer slow economic growth in the short term, but this will work in upgrading the economic structure and will result in a good living environment for our people, so it is worthwhile," said Sun Ruibin, Party chief of Shijiazhuang.

Wang Jiangtao, marketing manager at Yuancheng Construction Material Co, one of plants being demolished in the city of Luquan, said, "We will follow the government project and want to control air pollution as well so we agreed to close the plant. But it's still sad to see the plants being demolished," he said, adding that the company had invested more than US$4.94m in a new system in 2011. "We have not made enough money to cover the expenses up to now." Under government compensation plans, the plant may get US$1.65m and will receive other support for its future business, including preferential policies and tax relief, Wang added.

Two of Jinyu Dingxing Cement Co's plants were among the first batch of demolitions in December 2013, but so far new projects have not been decided on, said Feng Jinmin, a manager at one of the two plants that were closed. "Of the US$2.47m in compensation expected from the government, we have received half and are still awaiting government guidance on our future business," he said, adding that this may take years.

Last modified on 19 February 2014

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