More measures to regulate the transformation and upgrading of the printing and dyeing industry

◆The Ministry of Industry and Information Technology issued new regulations, and many measures to regulate the transformation and upgrading of the printing and dyeing industry

On July 14, 2017, the Ministry of Industry and Information Technology issued the "Conditions for the Standardization of Printing and Dyeing Industry (2017 Edition)", and proposed a number of measures to promote structural adjustment and transformation and upgrading of the printing and dyeing industry. The new version of the standard conditions will be announced at the end of July 2017. After that, the official regulations will be introduced and implemented. The "Printing and dyeing industry access conditions (2010 revised edition)" will be abolished at the same time. The specific content includes:

1) Enterprise layout: The construction site of printing and dyeing enterprises must conform to the national industrial planning and industrial policies. New printing and dyeing projects are not allowed within the prescribed areas of scenic spots, nature reserves, drinking water protection zones and major rivers. The existing projects need to be closed, relocated or Conversion. New areas of printing and dyeing projects shall not be built in areas with poor water shortage or poor water quality. Newly-developed projects in relatively well-sourced areas need to be built in industrial parks. Enterprises outside the park will be relocated to the park to implement centralized heating and centralized treatment of pollutants.

2) In terms of process equipment, printing and dyeing enterprises should adopt equipment with advanced technology, energy saving and environmental protection. The new or expanded production line should reach or reach the international leading level in general, and it is forbidden to use the backward production process and equipment stipulated by the state. Used equipment for environmental protection.

3) In terms of quality management, the quality of printing and dyeing enterprises must conform to national or industry standards, and the product qualification rate is over 95%. Specialized agencies or personnel are set up to supervise energy, water intake and sewage discharge. Support enterprises to use information management methods to improve management efficiency and level.

4) In terms of resource consumption: the energy consumption and water consumption of printing and dyeing enterprises must meet the requirements. For example, the energy consumption of cotton, hemp, chemical fiber and blended woven fabrics is not higher than 30 kg, and the water intake is not more than 1.6 tons.

5) In terms of environmental protection and comprehensive utilization of resources, printing and dyeing wastewater should be disposed of by itself or connected to centralized wastewater treatment facilities, monitored online, and discharged to the standard, and the water reuse rate is over 40%. Enterprises should regularly implement clean production audits, conduct energy audits, and improve clean production levels.

◆ New regulations to improve environmental protection requirements, squeeze the living space of small and medium-sized dye enterprises

Compared with the standard conditions of the printing and dyeing industry in 2010, the new regulations further tightened the regulations on energy consumption and water intake. For example, the comprehensive energy consumption and water intake of cotton, hemp, chemical fiber and blended woven fabrics decreased by 14.3% compared with the previous regulations. 20.0%, the energy consumption and water intake standards of yarns, knitted fabrics and other products also fell by 8.3%~21.1%. The water reuse rate standard has been raised from 35% to 40%.

At the same time, printing and dyeing as a high-emission, high-energy industry has also been subject to stricter regulation. The new regulations further improve environmental protection standards, requiring enterprises to adopt advanced technology, energy-saving and environmentally-friendly equipment, standardize production and operation of enterprises, and promote energy-saving emission reduction and clean production in the printing and dyeing industry.

Due to the small scale and low level of equipment automation, some small and medium-sized enterprises are  difficult to meet the requirenments of environmental protection and energy consumption of new regulations, and may be eliminated.

◆ Local policies continue to increase, and the concentration of printing and dyeing industry is expected to increase

In late June 2017, the Hangzhou Municipal Government issued the “Hangzhou 2017 Air Pollution Prevention and Control Implementation Plan”, proposing to promote the shutdown and merger and reorganization of the printing and dyeing industry in Xiaoshan District. It is planned to reduce the number of printing and dyeing enterprises from 40 to 19 by 2021. Prior to this, the Central Environmental Protection Inspector Group stationed in Guangdong, Fujian and other places in December 2016 and April 2017 for verification, and suspends production and rectification for environmentally unsatisfactory enterprises. It is also expected to enter Zhejiang for environmental protection supervision in the future.

China's printing and dyeing industry has the characteristics of “high regional concentration and low industry concentration”. The printing and dyeing production capacity is mainly concentrated in Zhejiang, Jiangsu, Fujian, Guangdong, Shandong and other provinces. In 2016, the total production capacity of the five provinces was 95.79%. The local government's environmental protection policy continues to increase, and local environmental protection supervision is becoming stricter. It will also continue to shrink the supply of the industry and drive market share to the leading position. In 2017, environmental protection verification in Guangdong and Fujian led to tight supply and dyeing fees in the local area. After the policy continued to increase, the production capacity in Zhejiang was expected to shrink, driving the dyeing fee to increase steadily.

◆The printing and dyeing industry continues to go to production capacity, and the environmental protection target is expected to benefit

The "Standard Conditions for Printing and Dyeing Industry (2017 Edition)" will raise environmental protection and energy consumption standards and eliminate some of the backward production capacity. The annual processing scale of the printing and dyeing of the airliner's shares is about 1.02 billion meters, and the market share is 2%, ranking the top five in the industry. The company introduces advanced production equipment, and the indicators such as overall energy consumption, pollutant emissions and water recovery level are at the leading level in the industry and can meet the new industry standards. Limited by the environmental protection indicators in Zhejiang, the company's expansion or merger is difficult, and the performance growth is mainly due to the price upgrade brought by quality upgrade and de-capacity. At present, the company's orders are full, the implementation of the new regulations will further shrink the industry's production capacity. As the supply of the industry gradually shrinks and the dyeing fee will increase in the future, the airliner's shares will continue to benefit as the industry leader.