China asks harzardous chem producers for deposit

03 August 2006 12:14  [Source: ICIS news]

SINGAPORE (ICIS news)--Companies producing hazardous chemicals in China will need to pay a “risk” deposit of at least CNY300,000 ($37,611/€29,468) as safeguard against accidents, the safety bureau said on Thursday.

Small enterprises will need to place deposits of at least CNY300,000 while deposits for medium-sized firms are set at a minimum of CNY1m, the State Administration of Work Safety said in a statement on its Web site.

Large-scale companies will need to pay at least CNY1.5m while super large-scale firms will have to pay at least CNY3m, it added, but it did not say how companies will be categorised. The deposits should not be more than CNY5m, it said.

The new regulation takes effect on 1 August. Companies will have to pay money to take care of the aftermath in accidents and the deposits will be used cover any shortfalls, the bureau said.

By: Florence Tan
+65 6780 4359

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