The explosion in Jilin Petrochemical on November 13 served as a stark warning, 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 safety hazards to take immediate corrective actions, and officially listed the hazardous chemical firms that need to be relocated. Initially, 78 companies were identified, with 15 deemed urgent for relocation. Prominent names such as Sanonda Zhengzhou Pesticide Co., Ltd. (Zhengnong), Nanyang Tianguan Group, and Shenma Chemical Chlor-alkali Co., Ltd. are among those included. Notably, both Zhengzhou, the provincial capital, and Luoyang, a major tourist city, have 13 such companies each, indicating the scale of the challenge. However, without adequate funding and suitable land, relocation remains just talk. According to reports, very few of the 78 companies have started the process. The main obstacles remain the high costs of relocation and the difficulty in finding appropriate new sites. The costs include environmental cleanup of old facilities, construction of new plants, and relocation expenses. For example, Henan Kaipu Chemical Co., an aging company, reportedly needs at least 800 million yuan for relocation, but this amount has not yet been secured. Many of these companies are large, historic enterprises with outdated equipment, making the relocation even more complex. Site selection is another major hurdle. New locations must align with regional development plans and environmental regulations, while also meeting the company’s operational needs like access to raw materials, energy, and transportation. Additionally, ecological considerations, such as water systems and urban planning, play a critical role. Zhengnong, for instance, has moved three times already due to these challenges. Personnel resettlement and the lack of infrastructure in new areas further complicate the process. Some officials admit that improvements in information and transportation in the target regions are unlikely in the short term, adding to the difficulties. Government support is essential for successful relocation. Most companies report that they cannot manage the process alone and rely heavily on government assistance and inter-departmental cooperation. 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 completed most of its preparations within a year. It officially began relocating in March 2006, with both Zhengzhou and Fuyang governments playing key roles. To address financial barriers, the Zhengzhou government offered preferential policies, including exemption from land transfer fees and using auction proceeds to fund relocation. Zhengnong currently occupies 300 mu in the city, which could fetch over 400 million yuan. Its new site in Fuyang spans over 600 mu, plus employee housing, totaling 800 mu. With an estimated cost of 800 million yuan, the company plans to invest 400 million from its parent group, ensuring sufficient funds. This move also allows for future expansion in Xiangyang, where land is abundant. In addition, the Zhengzhou government established a leading team to oversee the technical upgrades and coordination during relocation. Based on Zhengnong’s success, the Henan Provincial Safety Production Supervision Bureau is now working with local governments to secure land and funding for other hazardous chemical companies. Without proper planning, future relocations may become inevitable, leading to wasted time and resources. Both the government and companies will face significant costs. The question remains: Will these companies need to relocate again in the future? Concerns about long-term planning persist. Many cities lack specific plans for hazardous chemical storage or production, resulting in arbitrary placements of risks. Urban development is rapid, and what is now a suburban area may soon become a bustling city. Therefore, rational and scientific relocation is crucial. Local governments should integrate urban planning with development strategies, establish chemical zones in concentrated areas, and ensure the safe and sustainable growth of hazardous chemical industries, protecting public safety and maintaining social stability.

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