Reply of the enterprise: Explanation on Zhejiang Quzhou Jutai Building Materials Production Capacity Transfer Plan

2024-12-24 15:40:36

The capacity indicator remains valid for a period of not more than two years after the shutdown. In addition, the practice of dismantling kiln lines in advance not only meets the requirements of capacity replacement, but also helps to speed up the elimination of backward production capacity.

Previously, Zhejiang Provincial Office of Industry and Information Technology issued the Announcement of Zhejiang Quzhou Jutai Building Materials Co., Ltd. The 1333.33t/d cement clinker production capacity of Zhejiang Quzhou Jutai Building Materials Co., Ltd. was replaced to Guizhou Jiangge Cement Co., Ltd. and Jixi Sailong Cement Manufacturing Co., Ltd. for production line capacity supplement.

The announcement has caused some misunderstandings in the industry, and Zhejiang Quzhou Jutai Building Materials Co., Ltd. is now clarifying and explaining some doubts.

Note 1: The continuous shutdown time of the production line for less than 2 years

refers to the time from the start of shutdown to the transfer of production capacity with clear basis (for example, the date when the Buyer and the Seller sign the transfer contract of cement clinker production capacity indicators, or the date when the local competent department of industry and information technology accepts it).

Zhejiang Provincial Department of Industry and Information Technology announced clearly that the daily production index of Zhejiang Quzhou Jutai Building Materials Co., Ltd. is 1333.33 tons, which is valid before June 23, 2024. On June 20, 2024, the clinker index of the production line was obtained from the public auction of Guizhou Jiangge Cement Co., Ltd. through Zhejiang Jiatai Auction Co., Ltd. and sent to the industry and information department for formalities on the same day, less than 2 years. The Department of Industry and Information Technology has strictly checked and publicized after repeated verification.

According to Article 20 of the Measures for the Implementation of Capacity Replacement in the Cement and Glass Industry (2024 edition), the main equipment such as kilns must be shut down and dismantled before the construction project is put into operation, and the production license and emission permit must be cancelled or changed. According to the demolition party, the clinker production equipment (including kiln body) has been demolished before June 2024.

To sum up, the capacity indicator is still valid for a period of not more than two years after the shutdown. In addition, the practice of dismantling kiln lines in advance not only meets the requirements of capacity replacement, but also helps to speed up the elimination of backward production capacity. Therefore, the act of dismantling the kiln line before the transaction should be encouraged to promote the healthy development of the industry and the optimization of the capacity structure.

Note 2: Can cement clinker production line reach the benchmark energy efficiency level? The

cement clinker production line does not have energy efficiency during the shutdown period, so the energy efficiency verification cannot be carried out. It is only necessary to determine whether the shutdown time of the production line is within two years.

Note 3: The Pollutant Discharge Permit has not expired.

Zhejiang Provincial Department of Industry and Information Technology announced that the emission permit is valid until June 24, 2024, and the capacity index is valid before June 23, 2024, while the index trading day is June 20, 2024, which is in line with relevant regulations.

Note 4: The index transaction is reasonable and legal. Although the

transaction date is close to the expiration date of the target (the expiration date of the emission permit), the whole process is carried out through public listing and public auction, which ensures fairness, fairness, reasonableness and legality. Therefore, whether the timing is coincidental or not, it does not affect the legitimacy and transparency of the transaction.

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Correlation

Etuoke Banner Yongheng Cement Co., Ltd. was established on July 29, 2009, with its registered address located in the south of Jinghua Oxygen Plant, Qipanjing Industrial Park, Qipanjing Town, Etuoke Banner, Ordos City, Inner Mongolia Autonomous Region, and its legal representative is Wu Yongping. Its business scope includes licensed business items: production and sales of cement. General business items: sales of coal gangue, fly ash, clinker, limestone, granulated slag and gypsum.