China puts curbs on soda ash industry, restricts some regions

17 May 2010 06:18  [Source: ICIS news]

SHANGHAI (ICIS news)--China has unveiled a set of rules for the soda ash industry including restrictions on setting up new units in several regions in a bid to prevent over-capacity, the China Soda Industry Association (CSIA) said on Monday.

As per the new rules that would come into force from 1 June, ammonia-based plants would be required to have a minimum capacity of 1.2 m tonnes/year, while natural alkaline projects would have to produce at least 400,000 tonnes/year, they added.

New units or expansions of ammonia-based soda ash plants would not be allowed in central, east, and southwest China as these regions were heavily congested, it said.

“The severe over-capacity has caused the soda ash industry to suffer losses since 2008, so we should work out some policies to curb the increasing capacity,” said Wang Xiling, vice-chairman of CSIA, adding the criteria would also address quality standard issues.

The high capacity requirement would deter small and medium sized soda ash manufacturers and reduce congestion, industry sources said, adding that existing plants would not be forced to shut down.

($1 = CNY6.83)

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By: Dolly Wu
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