European Union Chamber of Commerce in China
Petrochemical, Chemicals and Refining and Environment Working Groups
The Tianjiayi Explosion: Aftermath and Future of Chinese Environmental Regulation
Date and Time: 9:00-10:40 am, Wednesday 17 April, 2019
Venue: Shanghai Office: Unit 2204, Shui On Plaza, 333 Middle Huaihai Road, Huangpu District
Beijing Office: Beijing Lufthansa Centre, Office C411A, 50 Liangmaqiao Road, Chaoyang District
Please register here for Beijing attendees or here for Shanghai attendees
The European Chamber would like to invite you to the next joint meeting of the PCR and Environment groups on Wednesday, 17 April, 9:00-10:40 am at the European Chamber Shanghai office. Members in Beijing will join this meeting via videoconference.
The explosion at the Tianjiayi plant in Yangcheng country, Jiangsu province on 21 March killed 78 people and injured more than 600. Many have criticized poor safety management as main cause for unnecessary tragedies like these. In the aftermath, how will chemical companies operating in China be affected?
The regulatory response has been swift. After initial actions in the Chemical Park itself and Jiangsu province, China’s State Council Security Committee issued an “Urgent Notice Launching Risk Assessments for All Chemical Industrial Parks Across the Country”. So far Sichuan and Shandong provinces have responded.
Shandong, for instance, issued the “Urgent Notice on Launching Investigation and Rectification of Potential Safety Risks of Hazardous Chemical Enterprises in Shandong Province”. As a result, 762 inspection teams were sent to inspect 4,050 enterprises, 22,504 issues and potential risks were found, 7,796 of 22,504 issues and potential risks were rectified immediately, 113 enterprises were subject to punishment, 121 enterprises were requested to suspend production for rectification, 3,711 enterprises reported the status of self-inspection and self-rectification on safety risks to the Emergency & Security Supervision Department at the county level.
The blast has had a significant economic impact as well. The aftermath is creating ripples in the chemical market, for example a sharp price increase on dyes and raw materials, polymeric MDI, polyurethane TPU, M-phenylenediamine, resorcinol, liquid chlorine. There have been fluctuations in the prices of resins, adhesives and pesticides, which some enterprises have even stopped quoting, and an anticipated rise of the price of PVA powder products.
What many companies don’t know is that China recently has digitised environmental information, allowing companies to check online which of their suppliers have safety issues that may lead to production suspension and to proactively verify which suppliers are ready to respond when inspectors knock on the door.
Mr. Johnny Browaeys, Director of International Business at Greenment Environment and Vice-chair of the Environment Working Group, will illustrate the impact of the explosion on chemical companies and China’s new age of online environmental enforcement. Mr. Peter Corne, Managing Partner at Dorsey & Whitney LLP and Chair of the Environment Group, will explain how to handle inspections in the wake of regulatory crackdowns.
Tentative Agenda:
08:30-09:00 Registration
09:00-09:10 Welcome remarks
09:10-09:30 Presentation from Mr Johnny Browaeys
09:30-09:50 Presentation from Mr. Peter Corne
10:00-10:30 Q&A Session
10:30-10:40 Closing Remarks
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For more information about the PCR and Environment Working Groups or the European Chamber in general, please contact Ms. Rachel Rapaport at rrapaport@europeanchamber.com.cn