Whoever gave the funds to the retired areas—Investigation of relocation of 78 hazardous chemicals companies in Henan
The explosion in Jilin on November 13 served as a wake-up call, prompting local governments to accelerate the relocation of hazardous chemical companies. On December 6, the Henan Provincial Government’s Safety Production Committee issued a notice urging companies with potential risks to take immediate corrective actions, and it officially listed 78 hazardous chemical enterprises that need to be relocated. Among them, 15 are considered urgent cases. Renowned companies such as Sanonda Zhengzhou Pesticide Co., Ltd. (Zhengnong), Nanyang Tianguan Group, and Shenma Chemical Chlor-alkali Co., Ltd. are also included in the list. Notably, both Zhengzhou, the provincial capital, and Luoyang, a famous tourist city, have 13 companies each on the relocation list, making them the cities with the most hazardous chemical facilities needing to move.
However, relocation is not easy without proper funding and land. According to reports, very few of the 78 companies have started the process. The biggest challenges remain the high costs of relocation and finding suitable new sites. The financial burden includes environmental remediation of old sites, construction of new facilities, and relocation expenses. For example, Henan Kaipu Chemical Co., Ltd., an older company, estimates that relocation would cost at least 800 million yuan, but the funds are still pending. Many of these companies are large-scale and historic, with outdated equipment that requires significant investment to replace or upgrade.
Site selection is another major hurdle. New locations must align with local development plans and environmental regulations, while also meeting the company's needs for raw materials, energy, and transportation. Additionally, factors like ecological planning along water systems and the availability of infrastructure play a key role. Zhengnong Company has moved three times already, highlighting the complexity of finding a suitable location. Issues like personnel resettlement and the gap between current and future infrastructure conditions also add to the difficulty. Some officials note that improvements in information and transportation in the target areas are unlikely in the short term, making the relocation even more challenging.
Without government support, moving these companies is nearly impossible. Most companies emphasize that relocation cannot be handled alone and requires collaboration across departments. Zhengnong Company has made the most progress, largely due to strong governmental leadership. Since the Zhengzhou Municipal Government proposed relocation in April 2004, the company has completed most of its preparatory work, with official relocation set to begin in March 2006. This success was driven by proactive efforts from both Zhengzhou and Fuyang governments.
To address the financial challenges, the Zhengzhou Municipal Government offered preferential policies, including exemption from land transfer fees. The proceeds from land auctions were fully allocated to relocation. With a city site covering 300 mu and expected to generate over 400 million yuan, and a new site in Fuyang spanning 800 mu, the total relocation cost is estimated at around 800 million yuan. With 400 million yuan from land sales and a planned 400 million investment from China National Chemical Corporation, the funding issue is largely resolved. The new location also offers ample space for future expansion.
In addition, the Zhengzhou government established a special team to oversee the technical upgrades and coordination during the relocation. Based on Zhengnong’s success, the Henan Provincial Safety Production Supervision Bureau is now working with local governments to secure further support for other hazardous chemical companies.
Without careful planning, future relocations may become inevitable, leading to wasted time and resources. The government and companies alike will face significant costs. The question remains: Will these companies have to relocate again in the future?
Concerns about this issue have been raised by officials in Henan’s Safety Production Supervision Bureau. Historically, urban development plans often lacked specific arrangements for hazardous chemical storage and production, leading to arbitrary placement of dangerous facilities. Many cities still lack dedicated chemical zones, resulting in scattered layouts. As urban development accelerates, what are now suburban areas may soon become bustling centers, raising questions about long-term safety and planning.
Therefore, rational and scientific relocation is essential. Local governments must consider urban layout and development in a comprehensive way, create forward-looking plans, establish chemical zones in concentrated areas, and ensure the safe and sustainable growth of hazardous chemical enterprises. This approach is crucial for public safety and social stability.
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