Jiande authorities slash number of calcium carbonate producers

By Albert Li
Published: Thursday, 27 April 2017

The local government prompted the myriad of small-sized calcium carbonate companies active in the area to consolidate, resulting in the number of operators decreasing by over 100 producers.

Jiande municipal government, in China’s Zhejiang province, has completed a large-scale consolidation of the local calcium carbonate industry, reducing the number of producers from 196 to 33.

The government said that the consolidation has so far progressed well. It carried out an asset appraisal for 160 companies by the end of February, and has allocated 65% of the subsidy fund, which was offered by the municipal
financial department in compensation for the consolidation process.

With rich calcium carbonate resources, Jiande is described as the leading calcium carbonate production base in China, but the myriad of small and unregulated operations active in the area for many years caused pollution issues in local water resources.

When the central government announced supplier-side reform policies for all sectors affected by overcapacity, the Jiande government took the initiative and forced the local industry to consolidate.

In the village of Qintang, 23 calcium carbonate companies were combined and a sole company was established, under the name Zhejiang Provincial Calcium Industry Co., with a registered capital of Chinese renminbi (Rmb) 100m ($14.5m*). A production facility with a capacity of 500,000 tpa was also built.

The move reached two objectives: it reduced pollution levels locally, but also united several small producers who used to compete fiercely through price wars. Similar action has also been taken in the town of Lianhua in Guangxi where dozens of local companies are being encouraged to consolidate to form a single high-tech material company.

The Jiande government stated that the next step will be to encourage some of the leading calcium carbonate companies to develop high-end products, achieve better resource utilisation and further reduce their environmental impact.