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Baoji factory shut down

       Since last week, baoji has seen an eight-month environmental inspection.

To everyone's surprise, the impact of the environmental inspection was so great that almost all local businesses stopped production. Bango Alloy reports.

       A week before the environmental inspection, discuss the impact of the upcoming environmental inspection with local titanium processing enterprises.The judgment was that some businesses might shut down because of sewage.But as the inspection started, almost all titanium processing enterprises in baoji area were affected and stopped production, "China titanium valley" is facing a "complete disaster".

    Environmental inspections have been underway for 10 days, the main problem in this environmental inspection is substandard waste water and dust. It is reported that not only baoji city's private titanium enterprises almost all shut down, power supply interruption, but also some workshops in baoti group was shut down due to substandard production. Companies in baoji's surrounding districts and counties are treated the same, with many county and village governments cutting off water and electricity. As a result, at least 95% of businesses in and around baoji have stopped production because of environmental inspections. 

Different from typical heavy pollution industries such as metallurgy and chemical industry, in people's concept, the impact of machining industry on the environment is very slight, and environmental protection and machining industry do not seem to have much overlap. But when environmental inspections came, we learned the severity of the policy. Even thought the emission is minimium, it still not be allowed if there is no qualified treatment method for dust and sewage. Incomprehension with relative policy is the main reason that reduce the Environmental protection earthquake. In the other hand, the week before the inspection is about to begin, dometic industries don’t know the detail rules of the environmental. They don’t know the standard to judge if industries are reach the standard. What caused this situation? Enteprise has not environmental consicious? Relevant departments did not do a good publicity? Or inspection standards were not specified in advance? If a tripartite agreement between companies, local governments and inspection teams could be made clear before environmental inspections began, the impact might not be as profound as it is now. Perhaps the most important thing to solve the current problem is to define the standards of environmental inspection as soon as possible. The absence of clear standards can only make enterprises feel at a loss and directly affected by the storm of verification.Clear inspection criteria can let companies do know where there is a gap, where there is need to improve, the enterprise will naturally move towards the goal, the corresponding obligations.

Baoji, as the bigest titanium industrial base in China, his shut down brings very big impact. As they do not know when they will be able to resume production, many enterprises are afraid to take orders and may not be able to deliver on time when they have signed orders.If this situation continues to remain unchanged, domestic titanium supplies will inevitably be affected, and price increases will be inevitable.For local enterprises, policy uncertainty will bring huge operational risks. If this risk cannot be ruled out, local firms may gradually move outward to gain a higher operating environment, and the "China Titanium Valley" faces the test of survival. 

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