The standards for accessing the soda ash market have been raised in an effort to curb the continuous expansion of production capacity

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The standards for entering the soda ash industry have been raised in an effort to curb the continuous expansion of production capacity. [Translated from “China Chlor-Alkali Network”] According to a report by Business Society on December 7, the “Draft Standards for Entering the Soda Ash Industry” issued by the Ministry of Industry and Information Technology sets higher requirements for new soda ash projects as well as existing soda ash manufacturers in terms of production layout, project scale, energy conservation and emission reduction, and product quality. Recently, Di Tongli, Chairman of the China Soda Ash Industry Association, said in an interview with reporters that the thresholds set by these access conditions are relatively high, with the aim of curbing the current overcapacity and continuous expansion in the soda ash industry. 　　According to Di Tongli, China’s current annual production capacity for soda ash is around 21 million tons, while domestic demand is about 16 million tons; approximately 2 million tons are exported. The excess capacity leads to a slowdown in the industry’s recovery and an increased risk of trade frictions. Even so, the enthusiasm for investing in soda ash projects in some regions or enterprises has not cooled down. Meanwhile, at present, the annual production capacity of soda ash enterprises in our country ranges from over 100,000 tons to 3 million tons, and there are significant differences in energy consumption levels; the output of heavy soda ash accounts for only 39.34% of the total soda ash production. 　　It is stated that these entry requirements were established in light of the current conditions in the industry, with the aim of curbing overcapacity in the soda ash sector. The standards involved are highly advanced, and it is difficult for existing manufacturing enterprises to meet all of them; it is also challenging for new projects to comply with all of these standards. 　　The access requirements stipulate that in the central and eastern regions, as well as the Northeast, North China, and Southwest regions, no new construction or expansion of soda ash production projects using the ammonia-alkali process will be approved, nor will any new construction or expansion of combined soda ash and ammonium chloride production projects that do not meet the conditions such as being located near sources of energy, having their own salt mines to ensure a supply of raw salt, being close to markets for soda ash and ammonium chloride, and having convenient transportation access. The northwestern region will no longer approve new or expanded caustic soda production projects, nor new or expanded ammonia-alkali projects that do not meet the requirements of being located near sources of energy and raw materials and water sources, having foundations that prevent seepage and leakage and avoid contaminating groundwater, as well as ensuring comprehensive utilization of alkali slag. 　　The entry requirements set scale thresholds for new projects: the design capacity of ammonia-soda plants must be at least 1.2 million tons per year, of which heavy soda ash should account for no less than 80% ； The combined alkali plant has an annual production of not less than 600,000 tons, with heavy-duty soda ash accounting for not less than 60% of that amount ； The annual production of natron shall be no less than 400,000 tons, and that of heavy soda ash shall be no less than 80%. The entry requirements also specify that new and expanded projects must achieve a comprehensive energy consumption rate and a water recycling rate of over 95%; existing soda ash manufacturers are required to meet these standards by 2015 and 2013 respectively. It is reported that the deadline for submitting comments is December 18th.