Fertilizer, methanol and other industries have become the key areas for the elimination of backward production capacity in the petrochemical industry

The National Development and Reform Commission announced plans to eliminate backward production capacity, and clarified that the five major industries such as steel, non-ferrous metals, light industry, textiles, and petrochemicals will eliminate production capacity in the next three years.

It is reported that the key areas for the elimination of backward production capacity in the petrochemical industry are oil refining, chemical fertilizers, pesticides, calcium carbide, and methanol. According to the National Development and Reform Commission's plan, the oil refining industry will adopt a regional equivalent replacement method. By 2011, we will eliminate 1 million tons or less of inefficient low-quality backward oil refining equipment, and actively guide 1 million to 2 million tons of oil refining equipment to shut down and switch. Prevent the construction of new oil refining projects in the name of asphalt, heavy oil processing, etc.

Fertilizer companies will eliminate backward technologies and unreasonable resource utilization capacity through large-scale pressure reduction and capacity replacement. The pesticide industry will eliminate a group of highly toxic and high-risk pesticides according to administrative regulations.

The National Development and Reform Commission also made it clear that it is necessary to speed up the elimination of outdated production capacity for products such as calcium carbide and methanol and strictly control the construction of overcapacity products such as methanol, caustic soda and soda ash. By 2011, it will eliminate 50,000 tons of citric acid backward production capacity and 2.3 million tons of backward chemical fiber capacity.

The previous meeting of the State Council executive meeting has made a decision to appropriately increase the capital ratio of fixed assets investment projects such as calcium carbide, caustic soda, coke, yellow phosphorus, and corn deep processing projects that belong to “two high and one capital” products.

In order to ensure the realization of the above-mentioned planning objectives, the NDRC stated that it will speed up the elimination of backward production capacity by revising and improving industrial policies, establishing a capacity withdrawal mechanism, and promoting technological transformation of enterprises. Specific measures include: improving access barriers, strengthening cleaner production audits, and implementing differential tariffs; properly solving problems such as staff placement, enterprise conversion, and debt solvency when enterprises eliminate backward production capacity; encourage enterprises to use new technologies, new materials, and new technologies; The transformation of new equipment will upgrade traditional industries, increase the level of technical equipment and develop high value-added products.

According to the reporter's understanding, China has made great progress in eliminating backward production capacity. By the end of 2008, China had eliminated more than 10 million tons of backward refining capacity, 945,000 tons of obsolete alcohol production capacity, 165,000 tons of backward production capacity of MSG, and 72,000 tons of backward production capacity of citric acid.