Fear in petchem industry due to the looming closure of China's Fujia Dahua

17-Aug-11

Chinese authorities have ordered Fujia Dahua's 700,000 tpa paraxylene plant to shut down immediately after local residents demanded the plant to be shut and relocated due to fears of toxic spills. The protesters demanded a clear timetable for moving the plant, as per Platts. Despite reports that paraxylene plant was shut on Sunday after street protests, industry sources said the plant was still running. The closure or relocation of Fujia Dahua would have severe impact across the industry. If the government shuts Fujia Dahua because of its proximity to residential areas, then almost all the petrochemical plants in China will have to be shut as they all are located near city centre. In addition, relocation would be a bigger task than building a new plant. For relocation, the company will have dismantle the plant and find another location to set up the plant. Fujia Dahua was built at a cost of US$1.65 bln. The relocation could take more than three years and can cost even more money.