Implementation Measures for Capacity Replacement in the Cement and Glass Industry (2021)

2024-07-24 12:08:35

On July 20, 2021, the Ministry of Industry and Information Technology issued a notice on the implementation measures of capacity replacement in the cement and glass industry. The revised Measures for the Implementation of Capacity Replacement in the Cement and Glass Industry will come into effect on August 1, 2021.

On July 20,

2021, the Ministry of Industry and Information Technology issued a notice on the implementation measures of capacity replacement in the cement and glass industry. The revised Measures for the Implementation of Capacity Replacement in the Cement and Glass Industry will come into effect on August 1, 2021.

Capacity replacement ratio:

(1) Cement clinker and flat glass construction projects with capacity replacement located in the key areas of air pollution prevention and control stipulated by the state. Capacity replacement ratio shall not be less than 2:1 and 1.25: 1 respectively; For cement clinker and flat glass construction projects located in non-key areas of air pollution prevention and control, the proportion of capacity replacement shall not be less than 1. The key areas of air pollution prevention and control shall be defined in accordance with the Opinions of the Central Committee of the Communist Party of China and the State Council on Comprehensively Strengthening the Protection of the Ecological Environment and Resolutely Fighting the Strong Battle of Pollution Prevention and Control and the relevant documents of the Ministry of Ecology and Environment.

(2) The cement clinker production line restricted by the national industrial structure adjustment catalogue shall be used as the replacement index and the inter-provincial replacement index of cement clinker, and the replacement ratio of production capacity shall not be less than 2:1.

Here is the full text of the notice:

However, in the past three years since the implementation of the Measures for Replacement, some problems have also been exposed: first, some of the contents are not compatible with the new requirements of the new stage, such as the low proportion of cement replacement, which is not suitable for the technological progress of the industry and the requirements of carbon peak; second, some of the operating procedures are relatively general, such as the provisions on the time and format of capacity announcement are not clear enough; Thirdly, some beneficial practices accumulated in practice need to be supplemented, perfected and absorbed into the Replacement Measures in order to better consolidate the achievements of capacity removal.

Therefore, in order to adapt to the new situation of the development of cement glass industry, implement the new development concept, construct a new development pattern, and better promote high-quality development, according to the work plan, our Ministry revised the original implementation measures of capacity replacement, and promulgated the Implementation Measures of Capacity Replacement in Cement Glass Industry (Ministry of Industry and Information Technology, formerly [2021] 80). Hereinafter referred to as the Measures) shall be implemented as of August 1, 2021.

2. What are the main contents of the revision? Firstly, the production capacity replacement ratio of cement projects has been increased, and the ratio of cement projects in key areas of air pollution prevention and control has been adjusted from 1.5: 1 to 2:1, and the ratio of cement projects in key areas of non-air pollution prevention and control has been adjusted from 1.25: 1 to 1. Capacity replacement ratio shall not be less than 2:1. The third is to encourage the comprehensive utilization of solid waste, and the production capacity of phosphorus (titanium, fluorine) gypsum cement projects in Hubei, Guizhou and other five provinces can be replaced by the same amount. Fourth, to ensure the needs of photovoltaic development, new photovoltaic rolled glass projects no longer require capacity replacement.

(2) The identification of production capacity indicators is more stringent. First, it is emphasized that the capacity indicators must be included in the list of production lines in the region updated and announced annually by each province. Second, in order to avoid the revival of "zombie production capacity", it is stipulated that cement production should be stopped for two consecutive years or more.

(3) The operation procedures of capacity replacement are more standardized. Firstly, the content and format of the announcement of the capacity replacement scheme have been clarified, and the capacity transfer scheme table and the capacity replacement scheme table have been added. The second is to clarify the processing procedures for changes in capacity replacement. Thirdly, it is clear that the annual production capacity is accounted for by 300 days.

3. Which cement and glass projects must implement capacity replacement? The Notice of the Ministry of Industry and Information Technology and the National Development and Reform Commission on Issuing the Opinions on Handling Some Projects in the Cement Industry (MIIT Lian yuan [2016] No.118) specifies that the projects under construction that are handled by the local authorities according to the situation but have not yet carried out capacity replacement shall also formulate capacity replacement plans in accordance with these Measures.

4. Under what circumstances can a capacity replacement plan not be formulated? At the same time, the method also clarifies that new industrial flat glass projects and photovoltaic rolled glass projects with furnace capacity not exceeding 150 tons per day can not formulate capacity replacement schemes.

5. What are the requirements for capacity replacement indicators?At the same time, if one of the circumstances specified in Article 7 of the Measures exists, it shall not be used for capacity replacement:

(1) Backward production capacity that has exceeded the time limit for elimination by the state, production lines that have enjoyed capacity withdrawal subsidies, cement clinker production capacity that has no production license for cement products or whose license has expired, and that has not obtained a discharge permit or whose license has expired in accordance with the law.

(2) The clinker production capacity of cement enterprises that refuse to correct after being interviewed by the competent industrial and information departments or environmental protection departments at or above the provincial level in violation of the regulations on peak staggering production.

(3) Since 2013, the production capacity of cement clinker and flat glass production lines has been suspended for two consecutive years or more (except for the peak-staggering production plan formulated or agreed by the provincial authorities and the adjustment of local planning).

(4) Production capacity of photovoltaic rolled glass.

6. How to verify the withdrawal of production capacity? There are clear criteria for approval in the new approach. The capacity index used for replacement shall be determined according to the design capacity and time completion capacity on the project filing or approval documents, and the smaller one shall be approved by the smaller one. The capacity of JT kiln is determined according to the project approval or filing documents, and the documents do not specify the actual capacity of the previous year.

7. Why has the replacement ratio of flat glass not changed? Especially since this year, the price of flat glass has risen considerably due to multiple factors such as the recovery of domestic market demand, phased tight supply and monetary easing in developed economies. In order to promote the stable operation of the glass industry and maintain the stability of the industrial chain and supply chain, the replacement ratio of flat glass production capacity should remain unchanged after comprehensive consideration.

8. Why does photovoltaic rolled glass not implement capacity replacement? Under the current background of carbon peak and carbon neutralization, considering the development needs of photovoltaic industry and glass production capacity, we forecast the demand for photovoltaic glass. It is expected that by 2025, there will be a large gap in photovoltaic rolled glass, and the structural shortage of photovoltaic glass production capacity has emerged. Therefore, considering comprehensively, in order to ensure the development of new photovoltaic energy and promote the adjustment of China's energy structure, the Measures implement a differentiated policy for the replacement of photovoltaic glass production capacity, and the new photovoltaic glass project no longer requires the replacement of production capacity, but it is necessary to establish an early warning mechanism for the risk of production capacity. For a new project, the competent department of industry and information technology at the provincial level shall entrust a national industry organization or intermediary agency to hold a hearing to demonstrate the necessity, technological advancement, energy consumption level and environmental protection level of the project construction, and announce the project information. After the project is completed and put into operation, the enterprise shall fulfill its commitment not to produce building glass, and the specific documents will be released separately.

9. How to operate judicial auction? In the case of compulsory replacement of production capacity across provinces, the competent department of industry and information technology at the provincial level to which the executed person belongs shall publicize and announce the notice of assistance in execution served by the people's court.

10. How to deal with and change the original capacity replacement plan?

11. How to deal with the failure to implement capacity replacement as required? The competent departments of industry and information technology around the country will further smooth the channels of reporting, and timely open telephone, fax, e-mail, network and other forms of reporting to the public on the portal website, and accept social supervision. Industry associations, media and the public are encouraged to supervise the implementation of capacity replacement schemes and construction projects.

To deal with violations such as failure to implement capacity replacement as required, lax auditing of replacement schemes, and inadequate implementation of capacity replacement, we should deal with them from three levels, one is to deal with enterprises, design consulting units and evaluation institutions that are fraudulent in the process of capacity replacement of cement and glass, and that are dishonest in the process of capacity replacement of cement and glass. In accordance with the Regulations on the Approval and Filing of Enterprise Investment Projects and the Notice of the General Office of the National Development and Reform Commission of the General Office of the Ministry of Industry and Information Technology on Serious Capacity Replacement and Strict Prohibition of New Capacity in the Cement Flat Glass Industry (Lianyuan [2018] 57 of the Office of Industry and Information Technology), penalties shall be imposed in accordance with the law and regulations, and relevant parties shall be jointly punished; Second, the regions with serious problems such as lax audit control and inadequate supervision and implementation will be reported to the whole country as negative examples; third, the individuals with dereliction of duty and dereliction of duty in the audit control and supervision and implementation of the capacity replacement plan will be submitted to the relevant departments to investigate the relevant responsibilities in accordance with the law and discipline.

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