Liquidity Risk Factor: Where Will Xiangshui'S Textile Dyeing And Finishing Industry Go After The Jiangsu Explosion?

If it were not for South of Jiangsu's environment, Jiangsu might still struggle on the poverty line.

Taking the Yangtze River as the cutting line, Jiangsu is divided into South of Jiangsu and Northern Jiangsu. The former includes Nanjing, Wuxi, Changzhou, Suzhou and Zhenjiang, while the latter is Xuzhou, Lianyungang, Suqian, Suqian and Suqian.

This north-south demarcation line is also a dividing line between the rich and the poor.

In 2007, GDP in Northern Jiangsu was only 1/3 of South of Jiangsu.

Around 2000, a group of chemical enterprises, which were eliminated by South of Jiangsu and Zhejiang, went north along the river to find new opportunities.

Eager to embark on the road of enriching people and Fuxian, the poor county of Yancheng City, which is developing the "popular investment", is catching up with this opportunity.

In June 2002, the Chen Jia Gang Chemical Industrial Park (later renamed the Xiangshui eco Chemical Park) came into being.

Insiders say that the chemical industry is known as "banknote printing machine" and has excellent economic benefits. Even today, it is also a profitable industry.

In the next few years, the chemical industry in Xiangshui turned from zero to economic pillar. Xiangshui turned and jumped from "the Great Northern Wilderness (10.560,0.31,3.02%)" to "an advanced county with increased revenue."

Xiang Shui county placed high hopes on the eco chemical park. In 2015, it proposed that the eco chemical park should be promoted into a state-level high-tech Pioneering Park before 2020.

But after the loud noise, everything went back to zero.

In March 21, 2019, Jiangsu Tian Jiayi Chemical Industry Co., Ltd. (hereinafter referred to as "Tian Jiayi chemical industry") exploded in the eco chemical park.

According to the latest official bulletin, as of March 25th, the accident has resulted in 78 deaths, of which 56 have been identified and 22 are still being confirmed.

Of the 28 missing persons, 25 had been confirmed dead and 3 survived.

After the explosion, the general office of the Jiangsu Provincial People's government issued an urgent notice to solicit opinions on the upgrading plan of Jiangsu chemical industry.

The plan points out that the existing 50 chemical industrial parks in Jiangsu will be reduced to about 20. By the end of 2020, the number of chemical production enterprises in Jiangsu will be reduced to 2000. By 2022, the number of chemical production enterprises in the whole province will not exceed 1000.

On April 4th, when the Standing Committee of the Yancheng Municipal Committee of Jiangsu held a meeting, it proposed that the small chemical industry with low safety factor and serious pollution problems should be eliminated.

The meeting decided that the Xiangshui Chemical Industrial Park would be completely closed.

"You can't make life safe for GDP."

A Yancheng City government official told the "finance and economics" reporter, after that, Xiangshui will face a new pformation. "There is no chemical plant in Xiangshui, but there are other industries, there is no way to change direction.

There must be some pain. "

Entrepreneurs in the Xiangshui eco chemical park are restless.

While waiting for the compensation policy, they are exploring new foothold.

The logic behind the Xiangshui explosion is that large quantities of chemical industry are absorbed in the economically backward areas eager to develop. While gaining considerable economic benefits, they still fail to match the ability to eliminate hidden dangers.

Where will the chemical industry migrate later?

Is another Xiangshui ready to welcome them?

Some experts expressed concern about the new round of chemical shift. If the chemical industry continues to move west to north, the management level of the next Xiangshui may not be as good as that of Jiangsu. If chemical industry is pferred abroad, it will be a loss.

With the explosion of Tian Jiayi chemical industry, a 2.2 earthquake occurred in the south of the irrigated River on the other side of the river. In addition, two kilometers away, a dye factory in the Xiangshui eco Chemical Industrial Park dropped two of the five factories, and 4 workers were injured.

The Deputy General Zhang Li (alias) tone of the Dyestuff Factory is somewhat understatement: "we lost well."

Jiangsu Da he Chlor Alkali Chemical Co., Ltd. (hereinafter referred to as "Da he chlor alkali"), which is next to Tian Jiayi chemical industry, is much more severely damaged.

Another neighbor of tianjiayi chemical company, Jiangsu Hua Xu Pharmaceutical Co., Ltd. (hereinafter referred to as Hua Xu pharmaceutical), has more than 10 employees killed in the explosion.

Most of the chemical plants in the Xiangshui eco chemical park have a rough fate and experienced turning points such as being expelled and renovated.

After the explosion, they are faced with a new gateway: can they continue to live?

Some owners worry that this time they will not even have the initiative to choose.

Zhang Li told the "finance and economics" reporter, in March 26th, he heard from a Yancheng City government official office that the chemical park may be closed.

"If we don't get out of the way, we will lose a lot."

He said he would be more willing to believe that the news released by government officials was "to explore the business mouth".

Many entrepreneurs have expressed the same appeal in the hope that the government can provide new plants and help them rebuild.

More than 10 years ago, a forced relocate made the dye plant badly hurt, and Zhang did not want the nightmare to come back again.

The dye factory moved from Zhangjiagang, Suzhou.

According to Xue Tao, executive director of E20 Research Institute, the refining and chemical enterprises in the upstream of the chemical industry chain are generally state-owned, and then show a very scattered and complex chain relationship, mainly private enterprises.

The rise of large-scale refining and chemical industry is closely related to the port. Therefore, located in the lower reaches of the Yangtze River and Jiangsu and Zhejiang, which have the advantage of port, it is an ideal choice for the chemical industry.

After the reform and opening up, a number of state-owned enterprises such as Yangzi Petrochemical and Jinling Petrochemical were rooted in Jiangsu and Zhejiang. At the same time, a large number of chemical enterprises emerged in towns in southern Jiangsu and Zhejiang.

In 1992, the predecessor of Tian Jiayi chemical industry was formally established in Jiangyin Ni Jiaxiang Chemical Co., Ltd.

It is located in Zhouzhuang town of Jiangyin, which is known as "Jiangnan cloth wharf", and wool spinning and dyeing is one of the main industries.

Jiangyin Ni Jiaxiang Chemical Co., Ltd. is engaged in the manufacture of chemical raw materials, which is the upper reaches of the textile printing and dyeing industry.

In the late 90s of last century, economically developed areas gradually realized the consequences of environmental pollution caused by the brutal growth of chemical industry.

Ren Hongqiang, a professor at the State Key Laboratory of pollution control and resource utilization of the Environmental College of Nanjing University, said in an interview that almost all the surface water in South of Jiangsu was polluted, and that there were more than 1000 kinds of organic poisons in the Yangtze River in Jiangsu.

Xue Tao said that in the economically developed areas, a number of chemical enterprises in the areas of profits tax, environmental protection, safety and other aspects have already done more harm than good and should be eliminated.

With the rise of township enterprises and foreign-funded enterprises, the economic development of Taihu basin is developing rapidly.

In 2003, Taihu accounted for less than 0.4% of the total land area and 3% of the population in the region, accounting for 13% of GDP and 19% of the total revenue.

In 2007, bottled water in supermarkets was snapped up by a drinking water crisis in Wuxi due to the outbreak of cyanobacteria in Taihu.

According to the Beijing News, the former employees of Tian Jiayi said that because of the cyanobacteria event in Taihu, Wuxi, the company moved to Yancheng.

In April 2007, Tian Jiayi chemical was registered in the chemical industry park of Chen Jia Gang.

Four years ago, Zhang Li's dye factory moved from Suzhou to Xiangshui to become one of the first enterprises to enter the chemical industry park of Chen Jia Gang.

Li Chunhua, director general of the environmental protection center of the environmental protection center in Nanjing, has done statistics. Apart from South of Jiangsu, another more than 10 chemical plants in the park were moved from Zhejiang.

In October 2018, factories in the park were upgraded.

According to Vice President Lingyun Qian of Yancheng City Dong Wang chemical industry Co., Ltd., factories in the park have increased investment, mainly in terms of safety and environmental protection, including equipment renewal, intelligent detection, fire protection facilities and equipment. "If we want to continue to survive in this park, we must upgrade."

Zhang Li said that the plant invested 30 million yuan to pform the old platform to the automatic production line, although the output will not change after renovation, but the security will be improved, "we almost finished, in the end."

But everything stopped because of the explosion.

When the explosion occurred, a mason was building in the hardware workshop of the Tian Jiayi chemical industry. With a loud noise, the precast slab fell from the top of his head. He escaped from the room and found that the door of the warehouse had been concealed by the ruins and returned to the small bungalow, crawling out of the ruins from the warehouse roof.

In the industrial park, people ran away from the direction of the fire. Some people ran barefoot on the road full of broken glass. When the 52 year old Mason went far away, he found that his legs were full of blood.

A technician who worked in Hua Xu pharmaceutical industry sent help to his colleagues.

He said on the phone that he was going to die soon, and called an ambulance to rescue him.

He also called his wife but did not get through.

His young wife has been looking for a husband for a whole night in Xiangshui People's Hospital and Xiang Shui county hospital of traditional Chinese medicine.

On the second afternoon, his body was discovered by rescuers.

A pair of young couples working in Jiangsu Zhijiang Chemical Co., Ltd. were both killed.

After losing contact with them, family members searched all hospitals in Yancheng and Xiangshui.

At 7 a.m. on March 23rd, the relatives of the woman mixed into the team of factory workers and entered the scene of the accident.

More than 10 a.m., rescue workers dug up a body, severely burned, and could not recognize the appearance. The family recognized the identity through the bracelet and ring on the hand of the deceased.

The body of the man was found at more than 4 p.m., and the appearance was equally miserable.

Xiangshui eco Chemical Industrial Park was established by the government of Yancheng City on 6 June 2002. It is the first provincial-level science and Technology Pioneer Park in Jiangsu province with a planned area of 10.05 square kilometers.

For the reasons for choosing Xiangshui, many entrepreneurs said that Xiangshui had offered more preferential policies when attracting investment.

Zhang Li told the "finance and economics" reporter that the whole land of Chen Jia Gang town was cheap and close to Zhangjiagang, so it came over.

At that time, Xiangshui, which opened its arms to the chemical industry, was very poor. It was dubbed "the Great Northern Wilderness in Jiangsu" and "Lankao" in Northern Jiangsu.

In 2003, when Zhu Bin, the mayor of Xiang Shui county, put forward the Xiangshui's urgent desire to shake off poverty in the text of the "development project economy and promoting leapfrog development".

He introduced various attempts to promote Fumin Fuxian in Xiang Shui county. For example, in the past few years, the county has repeatedly organized "project information 10000 people collecting activities", "do everything possible to dig up information, arrange customers and look for projects"; "the County Planning Commission, the economic and Trade Commission, the foreign trade bureau and other departments have taken the lead in the timely release of all kinds of valuable project information, and guided various townships and departments to launch investment promotion activities targeted."

Xiangshui aims at South of Jiangsu, Shanghai and Zhejiang.

An intriguing detail is that this article, written by the county magistrate of Northern Jiangsu Province, appears in the "entrepreneurial hot spot" section of South of Jiangsu science and technology development magazine, which seems to be a welcome signal to South of Jiangsu enterprises.

Zhu Bin wrote in the above article that since 2003, ringing county has launched a series of activities such as "attracting investment surprise month", Chen Jiagang Chemical Industrial Park (Nanjing) EIA press conference, County Economic Development Zone Shanghai Pudong workstation unveiling and project promotion, and so on.

Xiangshui has a great potential to fight. In order to build the chemical industry park of Chen Jia Gang, this poor county has put in a great body, including manpower and financial resources.

Zhu Bin wrote that the park is an important carrier for attracting investment. The county economic development zone and the Chen Jia Gang Chemical Industrial Park have introduced 24 projects with investment of over ten million yuan, investing nearly 2 billion yuan, and more than 80% chemical projects and more than 60% textile projects in the county.

In order to solve the problem of investment in the park, we should take provincial and municipal assistance funds to invest in key projects and strive for credit input. The county authorities should carry out the construction of infrastructure and encourage the townships and counties to directly run the "garden Central Park" and "Central District", and so on. "The whole county is willing to run the park", and has invested about 60000000 yuan into the water infrastructure of the park.

At the same time, we should implement the principle of "sharing resources in the whole county". We should actively guide township projects into the park according to the principle of "who will bring in and benefit from it".

According to "China News Weekly", a government investment promotion task list in 2005 showed that the leaders of the county Party committees were linked to the point service enterprises, and almost all the administrative departments had the task of attracting foreign investment. Among them, the Education Bureau, the Civil Affairs Bureau, the Judicial Bureau, the Labor Protection Bureau, the Land Bureau, the Construction Bureau, the communications bureau, the water supply bureau and the health bureau had to complete the introduction of more than ten million yuan projects each year.

The report referred to a "beautiful talk" which reflects the local investment attraction ecology. In July 2004, a Zhejiang businessman called the "investment office" in loushui county and mistakenly called the admissions office.

Not only did the staff of the admissions office treat each other with courtesy on the phone, but they quickly reported to the leadership of the Education Bureau, and immediately organized their forces to Zhejiang to invite businessmen to negotiate with Xiangshui, thus facilitated the implementation of a new project.

According to the China business newspaper, from 1994 to 2010, South of Jiangsu pferred 6770 projects to 5 million cities and five cities in Northern Jiangsu Province, with a total investment of 197 billion 500 million yuan.

Economic returns are quickly reflected.

In 2006, Xiang Shui county integrated the economic development zone, expanded the Chen Jia Gang chemical concentration area and set up a new coastal economic zone, which became the "three carriages" of Xiangshui's economy after a few years.

In the same year, Chen Jia Gang chemical concentration area was listed as the 100 key industrial cluster in Jiangsu Province, and its main business revenue reached 2 billion 400 million yuan, accounting for 42% of the industrial scale above the county level.

A year later, Chen Jia Gang entered the ranks of 50 key towns in Yancheng City.

Xiangshui's economic structure has also undergone fundamental changes, and the industrial economy has become the main body of the economy.

Since the beginning of this year, Jiangsu has been recognized as "an advanced county for increasing revenue and income".

In 2011, the Xiangshui eco Chemical Park increased 8 times its revenue over the past four years, becoming the first billion industrial park in the county and the first chemical technology business park in Jiangsu province.

In Xue Tao's view, the chemical plant which was eliminated by Northern Jiangsu and South of Jiangsu and other places has the advantage of geographical location in Zhejiang.

He believes that the emergence of chemical industry pfer is inevitable.

From the perspective of China's industrial layout and economic development, there are obvious echelon differences among different regions, while the trend is "eliminating backward production capacity in developed areas and pferring to developing areas"; developing areas with backward production capacity as the basis for learning, slowly catching up with developed areas in the economy, then eliminating and re pferring them.

New elimination and pfer are still taking place.

In March 25th, a Yancheng City government official told the "finance and economics" reporter that in the past, after South of Jiangsu's conditions were good, the merchants turned into the merchants and selected the "excellent business" to pfer the enterprises that had no advantage, so Subei took over a batch of chemical industry.

"We must consider the economy locally, no one will say that the chemical industry is not good.

We are also a reason. We are now moving to Shandong, Henan and other places.

A person responsible for the construction of a chemical plant in central enterprises has also confirmed the above views.

He said that now the chemical industry park is very popular in the central and western regions, and there are many provinces for them to do chemical industrial park construction.

A draft released after that will speed up the pfer.

According to the emergency notice issued by the general office of the Jiangsu Provincial People's Government on April 1st for the opinions on "Jiangsu chemical industry upgrading scheme (Draft)", Jiangsu will conduct a comprehensive evaluation of the 50 chemical industrial parks in the province. According to the evaluation results of the park area, industrial level, land use area, planning permission, safety supervision and environmental governance, the chemical industrial park will be reduced to about 20. The chemical industrial park location has been abolished, and no new chemical projects have been strictly prohibited. "We must strictly manage and resolutely close the chemical enterprises with high flammability, flammability, explosives, safety and environmental protection, and gradually close or relocate other chemical enterprises."

The number of chemical production enterprises in Jiangsu will be greatly reduced.

According to the above draft, Jiangsu province will increase the number of enterprises outside the 2339 home areas to renovate, reduce, pfer, and pform. It will further investigate the 1660 below scale enterprises and assess the risks of safety and environmental protection. The enterprises that fail to meet the standards will close down before the end of 2020.

By the end of 2020, the number of chemical production enterprises in Jiangsu will be reduced to 2000. By 2022, the number of chemical production enterprises in the province will not exceed 1000.

The above-mentioned Yancheng City government officials told the finance and economics reporter that after the chemical industry was renovated, Xiangshui will undergo economic pformation, and the specific pformation plan has not yet been promulgated.

In his view, any situation will develop to a certain extent. "Only the size of Jiangsu is bigger."

"Chemical plants must find their own way out.

So if compensation is in place, they will move elsewhere or pform.

The official said that the compensation scheme for chemical enterprises is still in communication. "Some projects have come through investment and there have been agreements, which will be compensated according to the agreement."

A staff member of Hua Xu pharmaceutical company told the financial magazine reporter that the boss intends to close the factory. He has returned from his home in Xiangshui and intends to get a job again after injury.

Zhang Li feels that there may be room for maneuver. He plans to "think of ways" before considering relocation.

Xue Tao believed that when the chemical plants in South of Jiangsu and Zhejiang moved to northern Jiangsu, the management level in Northern Jiangsu did not keep up, resulting in frequent danger.

Today, Jiangsu's reorganization of the industry means that thousands of chemical enterprises will have a new shift.

What worries him is that the government's ability to manage other underdeveloped areas in the chemical industry will not keep up.

If chemical industry is pferred abroad, it will also be a loss for China's manufacturing industry.

Xue Tao said that chemical industry is the foundation of manufacturing industry. The chemical chain in China's manufacturing industry is a very important reason for China to win. Once the chemical industry chain is not broken, many other supporting industries will not work, for example, the cost of supporting fields such as automobiles and mobile phones will be very high.

After the loud noise, the fear spread rapidly.

A worker at Hua Xu pharmaceutical laboratory jumped down from the two floor and ran to the top of the windmill as fast as possible.

He told the financial reporter that the internalization of the park was intensive and no one knew what else was in the other plant.

Some dangerous substances may explode at high temperatures. "The next explosion may happen at any time."

A female worker of Da and chlor alkali said that she ran through several tanks when she ran away, not knowing whether it was hydrogen or chlorine.

On the way, she smelled a strong smell of chlorine and almost fainted.

Later, she recalled to the financial reporter in the hospital, "fortunately, our company's hydrogen storage tank did not explode. If it exploded, it would be like a hydrogen bomb."

According to the Beijing Youth Daily, the 119 operator revealed that the explosion occurred in a production facility in the Tian Jia Yi Hua factory area. The explosive material was suspected to be benzene.

Benzene is a colorless, aromatic liquid, widely used in chemical production.

The International Health Organization defines benzene as a strong carcinogen.

Public information shows that Tian Jiayi chemical main intermediate benzene two amine, o-phenyl two amine, para benzene two amine, hydroxybenzoic acid, anisole, KSS and other fine chemical products.

According to the product, the factory will produce nitrobenzene in the process of production.

Nitrobenzene is used in organic synthesis industries such as explosives. It will burn and explode when exposed to open fire and high heat.

Nitrobenzene is obtained by nitration of benzene through nitric acid and sulfuric acid. This process is also called nitrification. The risk of nitrification is very large. It is a key link in industrial production.

The problem of Tian Jiayi chemical industry has long been a clue.

"Finance and economics" reporter found that as early as more than a year ago, in view of the safety problems of Tian Jiayi chemical industry in nitrification related links, the State Administration of work safety has asked for rectification, including the nitrification device after the interlock was not revised and changed operation schedule in time. Part two nitration reactor DCS and SIS pressure pmitter shared a pressure point; part two nitrifying reactor to supplement the hydrogen pipeline shut-off valve to the auxiliary line, the interlock was not used; the cabinet and the monitoring room were violating in the nitrification workshop.

It is noteworthy that, in the face of on-site enquiries, the operators of the plant do not know the installation of the flammable gas alarm and the emergency disposal measures after the alarm.

In January 2018, the state supervision and Administration Bureau of the State Administration of work safety conducted inspections on the safety production of dangerous chemicals in five cities such as Yancheng, Lianyungang, Huaian, Xuzhou and Suqian in Jiangsu province.

18 chemical enterprises including Tian Jia Yi chemical industry were inspected at the scene, and 208 hidden dangers were discovered. Among them, 13 of the chemicals were located in Tian Jia Yi.

Official documents show that the purpose of the inspection is to seriously learn a lesson from the accident a month ago.

At 2 hours and 09 minutes in December 9, 2017, an explosion occurred in two chlorobenzene plant between Lianyungang poly Xin Biotechnology Co., Ltd., resulting in 10 deaths and 1 minor injuries.

After the inspection, the State Administration of work safety ordered the Jiangsu Provincial Safety Supervision Bureau to organize the local safety supervision departments to issue law enforcement documents, implement administrative penalties according to law, supervise and urge the enterprises concerned to rectify and reform, and at the same time, study and formulate measures to further strengthen the safety production of dangerous chemicals, and carefully organize and implement them to ensure safety in production, and resolutely prevent and prevent serious accidents.

But the explosion happened in Xiangshui a year later.

This is not the first safety accident since the establishment of Xiangshui eco chemical park.

In November 27, 2007, a chemical company in the park exploded during the production of diazonium salt, killing 8 people and injuring 5 people.

In 2011, another chemical company in the park leaked chlorine gas, which eventually caused more than 30 employees poisoning.

What sparked more widespread concern was that in February 9, 2011, hundreds of thousands of people fled to "big escape" in loushui County, which was later identified as rumor by the local government.

After the "big escape" incident, the government of the Xiang Shui county admitted that nothing had been bubbling up. This shows that there are masses of people around the park that do not have enough trust in the environmental protection and safety of the chemical industrial park, and the management of the park needs to be perfected.

The villagers in the chemical industrial park have a doubt that the concentration of chemical plants in a park is not equivalent to putting explosives in the same basket.

Industry EHS risk assessment experts believe that the chemical industry is not the same as explosive cartridge bags. As long as we strictly follow the requirements of safe operation and do fine management, the accident rate will not be higher than other industries, but its characteristics determine the impact of the accident.

It's safer to concentrate chemical plants in the park than in different places. It also avoids "putting different explosives into different living areas".

Li Guoqing, a master tutor of the school of chemical and energy engineering, South China University of Technology, said that the free distribution of chemical plants is not realistic from the perspective of occupants and household distribution.

Because the chemical plant and the surrounding households need to maintain a distance, and at the outlet.

Secondly, the park can provide a unified sewage, waste gas and solid waste disposal system for chemical plants. If each factory builds its own set, it will be very difficult.

Li Guoqing said that when these chemical plants were concentrated, there should be a clear regulation, and there should be a safe distance between the factory and the factory. The park and chemical plant should make a sound plan to determine which enterprises are heading in the wind and what direction they are going downhill. There should be safety ditches between enterprises and enterprises so as to ensure that an enterprise will not flow to other enterprises or sewers or rivers if there is a leak.

Xue Tao said that most of the chemical enterprises in Northern Jiangsu were uneconomical in South of Jiangsu. Secondly, there was no fine South of Jiangsu in management.

The same enterprise may not explode in South of Jiangsu or Zhejiang. Instead, it will increase the possibility of explosion after it is pferred to underdeveloped areas.

The main reason lies in the fact that although the underdeveloped areas have attracted businessmen, talent and local governments are still unable to keep up with the requirements of safety production, environmental protection law enforcement and enterprise standardization.

Xue Tao once visited a chemical enterprise with factories in Northern Zhejiang and Northern Jiangsu. In his view, the enterprise in Northern Zhejiang had stronger government management ability, better overall environmental regulation, and normal production during environmental supervision, while the factory in Northern Jiangsu encountered "lying gun" after environmental safety supervision and safety accident in nearby factories. Xue Tao thought it was the embodiment of local management methods in safety production and environmental protection.

Many experts said that from the past chemical safety incidents, many problems were caused by management problems.

Northern Jiangsu area needs to strengthen the management of chemical production enterprises, including administrative management, safety management, technology management and other links.

The aforementioned EHS risk assessment expert also said that in order to ensure the safety of chemical industrial parks, from the inside of enterprises, the top management should pay attention to safety, environmental protection, special funds, and risk management.

Externally speaking, enterprises need to receive strong supervision from the government, residents and other parties to disclose the EHS (environment, health and safety) performance of the enterprises, so that investors and banks also require EHS of enterprises.