China to move contentious PX project out of Xiamen

10 March 2008 04:07  [Source: ICIS news]

SINGAPORE (ICIS news)--China has decided to move a controversial yuan (CNY) 10.8bn ($1.5bn) paraxylene (PX) project out of Xiamen, Fujian province, on environmental concerns, a Xiamen government official said on Monday.

The project, by Dragon Group, was waiting for central government approval to be moved to the Gulei peninsula in neighbouring Zhangzhou city, he added.

Environmental concerns arose as Xiamen allowed the construction of residential properties in Haicang district which was meant for industrial use. Residents took to the streets to protest against the project in April.

In a rare move for China, the government agreed to review the proposal. It recently completed an environment study on the project and sought the public’s view, but many still opposed it.

Residents in Zhangzhou also protested against the chemical project last week despite attempts by the government to impress on them financial benefits from the project, according to local media reports.

Meanwhile, Xiamen planned to change Haicang’s investment profile to shift it away from the chemical sector, and it was unlikely to build any such plants in the future, the official said.

($1=CNY7.11)

By: Florence Tan
+65 6780 4359

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