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Gansu Jinchang Promotes Transformation and Progress through Recycling Author/Source: Sinochem New Network Date: May 19, 2020 Clicks: 6 On the eve of May Day, construction is in full swing within the Hexibao Chemical Circular Economy Industrial Park in Jinchang City, Gansu Province, with dozens of circular economy projects under rapid development. The person in charge of the Hexibao Chemical Industrial Park said that once all the projects are completed, a series of industrial chains will be established, enabling the circular use and on-site utilization of coal coke, calcium carbide, coal tar, and gas within the region. This is just a glimpse of Jinchang City’s efforts to promote the transformation and upgrading of the petrochemical industry. In recent years, Jinchang City has made the development of a circular economy a key approach for the transformation and sustainable development of resource-based cities. It has established a circular economy development framework characterized by ** as the driving force, planning as the guide, industrial parks as platforms, enterprises as the main actors, technology as a support element, and projects as key focuses. This has given rise to a new pattern of small-scale cycles within enterprises, medium-scale cycles within industries, and large-scale cycles at the regional level. Overcoming Resource and Environmental Challenges Jinchang is a typical resource-based industrial city. For a long time, an industrial structure dominated by mineral extraction and processing, non-ferrous metal smelting, and the production of related chemical products has led to high resource consumption, significant environmental pressures, short industrial chains, and a high degree of dependence on resources. As a result, the city was included in the list of the “top 10 cities with the worst air pollution in the country” on two occasions, earning it the reputation of being a city with a “black label”. Without developing a circular economy, the environment will be unable to sustain the load, resources will become unsustainable, and economic transformation and sustainable development will be impossible. To this end, Jinchang City has seized the opportunity of being designated as a pilot city for the development of a circular economy in Gansu Province, and Jinchuan Group being listed as a national pilot enterprise for such development, making the vigorous promotion of a circular economy an important strategic priority. Academicians from the Chinese Academy of Engineering and the Chinese Academy of Sciences, as well as experts and scholars from several renowned domestic research institutions, were invited to provide their insights and suggestions; as a result, the \"Jinchang City Circular Economy Development Plan\" was revised and improved. An implementation plan for establishing a national model area for circular economy development was also formulated, outlining the role of circular economy development, the industrial layout, the direction of progress, and the key areas of focus. At the same time, a large number of major projects with high inter-industry connectivity and close integration were carefully planned and implemented. The industrial chains for non-ferrous metals, chemicals, and other sectors were continuously expanded, with enterprises being brought into specialized industrial parks. This helped to extend these industrial chains and facilitate structural adjustments as they expanded, with the goal of establishing a new model of circular economy characterized by resource recycling and symbiotic industrial development. The industrial park facilitates industrial clustering. Jinchang uses its chemical industry parks as important vehicles and platforms for developing a circular economy. Following the principles of industrial clustering, concentration of projects, grouping of enterprises, integration of technologies, and support for circular processes, it has planned and developed the Jinchang New Materials Industrial Park and the Hexibao Chemical Circular Economy Industrial Park. In recent years, the two industrial parks have focused on attracting investment by leveraging industrial chains and concentrating on project development. They have successfully brought in leading domestic enterprises in related industries such as Sichuan New Hope Group, Guizhou Hongfu Group, Sinochem Fertilizer Company, and Inner Mongolia Taixi Coal Group to join the \"Circular Economy Circle,\" and have made great efforts to develop related industries such as PVC, potassium sulfate, phosphate fertilizers, synthetic ammonia, and printed nickel mesh. Entreprises with different investment entities are linked by upstream and downstream products as well as by by-products, thus forming closely interconnected material chains and industrial chains. Xinchuan Chemical Co., Ltd., the first company to set up operations in the Jinchang New Materials Industrial Park, is a new enterprise established by Sichuan New Hope Group in Jinchang. Initially, the investors came here because of Jinchang’s abundant resources of \"three wastes\" such as sulfuric acid and chlorine gas. Today, Shin-Kawa Chemical Company has completed projects with an annual production capacity of 200,000 tons of PVC and 200,000 tons of potassium sulfate. Over the next 10 years, New Hope Group will invest another 3 billion yuan to reach an annual production capacity of 800,000 tons of PVC and 1.2 million tons of sulfur-based compound fertilizers, thereby establishing itself as China’s largest PVC and sulfur-based compound fertilizer production base with annual sales revenue exceeding 10 billion yuan. The person in charge of the Jinchang New Materials Industrial Park mentioned that through years of exploration and practice, the park has established a new framework of \"small cycles for individual enterprises, medium-scale cycles for industries, and large-scale cycles at the regional level.\" It has developed interconnected circular economy industrial chains such as copper-nickel sulfide mining – nickel-copper-cobalt smelting – nickel-copper-cobalt rolling and new materials production; sulfur dioxide – sulfuric acid – sulfur chemical industry; sulfuric acid – phosphoric acid – phosphate chemical industry; caustic soda – chlorine gas – PVC – calcium carbide slag – cement; and raw coal – compacted coke – coke oven gas – synthetic ammonia – ammonium phosphate, thereby maximizing resource utilization and minimizing pollutant emissions. Economic development and environmental protection achieve a \"win-win\" outcome. Sulfur dioxide is the main culprit behind environmental pollution in the Jinchang area. In the development of a circular economy, Jinchang City promotes cooperation between the government and enterprises, transforms waste into valuable resources, and turns potential hazards into opportunities, thereby turning environmental pressures into drivers for development. In the Jinchang New Materials Industrial Park, relying on Jinchuan Group, over 2 billion yuan has been invested in technical upgrades to continuously improve the capacity for sulfur dioxide recovery and acid production. Jinchang City also uses the circular economy industry chain as a platform to attract strong enterprises such as New Hope Group, Guizhou Hongfu Group, and Sinochem Fertilizer Company, thereby forming a closely linked industry chain together with local companies like Jinhua Group and Jinni Group. Jinchuan Group converts sulfur dioxide gas into sulfuric acid, which is then used by Xinchuan Chemical, Wengfu Company, and Jinhua Group to produce PVC and sulfur-based fertilizers. The waste residues generated in this process are sent to Jinni Group for the production of dry-process cement, which is subsequently used by Jinchuan Group for mine filling. Severely polluted “waste” turns into a “treasure” after going through a certain process, and all companies in the chain benefit from this. Jinchuan Group’s capacity to produce sulfuric acid from sulfur dioxide has increased from 220,000 tons per year at the end of the Ninth Five-Year Plan period to 2.2 million tons per year today, with 96% of industrial flue gas being recovered and converted. In addition, the group has invested substantial funds and technical resources in carrying out projects for the treatment and recycling of industrial wastewater. In 2011, Jinchuan Group’s reuse of reclaimed water reached 13.2 million tons, the reuse rate of industrial water was 90%, and the treatment rate of industrial wastewater was 100%. By developing a circular economy and industrial clusters, Jinchang City has essentially achieved a historic transformation from a single-resource-based economy to a diversified, comprehensive economy. It has made significant progress in addressing resource and environmental challenges, thereby driving strong and accelerated economic transformation.