G20 Summit: supply chains disrupted for clear blue skies

| 0 Comments

 

SupplyChainSummit.jpgIn preparation for the upcoming G20 summit in China this September, the Shanghai Environmental Protection Bureau (SEPB) issued an order for an estimated 1 000 factories within a 300-km radius of Shanghai to cut down production.

This measure was enacted to reduce pollution before world leaders arrive for the event. So how will this affect global supply chains?

This year, China hosts its first-ever G20 summit in Hangzhou, a city situated 240 kilometres south-west of Shanghai, where significant industrial, construction and residential emissions affect the air quality of its neighbouring cities.

In 2015, Shanghai’s average pollution was double the recommended level listed by the World Health Organisation.

Shanghai and Hangzhou are home to several industries including petro-chemical, pharmaceutical, garment, food and equipment manufacturing. The following are the measures that will be implemented in the lead up to the summit:

1. Power, steel, chemical, and petrochemical operations must limit their air pollution by 70 per cent throughout the city, and by 80 percent in Jinshan District.

2. Petrochemical operations in Shanghai must reduce production with a target of 50 per cent.

3. Production by coal-fired power stations will be reduced by 30 per cent and all facilities must use only low-sulphur, high-quality coal.

4. All chemical plants in the Jinshan District, save for those operating out of Shanghai Chemical Industry Park, will be closed.

5. No new operations resulting in increased emissions at chemical and petrochemical facilities will be permitted.

6. “Highly polluting” vehicles – a term which the plan does not define– will be prohibited in Hangzhou.

7. The use of agricultural, forestry, and port equipment shall be reduced by 30 percent across Shanghai and by 50 per cent in Jinshan District.

8. Petrol stations, oil storage facilities and oil tanker trucks that have not installed oil and petrol reclamation and emissions control equipment must cease operations.

9. The plan allows for the adoption of additional measures if certain weather patterns are forecast that might increase air quality issues.

Among the companies affected is Shanghai Petrochemical, which has been ordered to reduce its production 50 per cent. The company’s 150 000-tons-a-year C5 separation unit; 100 000-tons-a-year ethyl tertiary butyl ether unit; two 100 000-tons-a-year polypropylene units; 230 000-tons-a-year monoethylene glycol plant; and 300 000-tons-a-year polyester facility will be taken offline for 14 days.

Meanwhile, Shanghai SECCO Petrochemical, will shut down one 260 000-tons-a-year acrylonitrile from mid-August. Other shutdowns include Huayi Polymer Co’s acrylonitrile-butadiene-syrene, Shanghai Chlor-Alkali Chemical’s ethylene dichloride and Oriental Petrochemical Shanghai’s purified terephthalic acid units ahead of the international summit.

Other companies expected to shut down or cut on production are Shanghai Pharmavan Medicine Development Co., Shanghai Cezhen Automation Instrument Co., Shanghai Qiangsheng Stainless Steel Wire Rod Co., Shanghai Jiyue Auto Components Co. and Shanghai Jingyinze Packing Machinery Co.

The short-term measure is similar to those enacted by Beijing in 2014 ahead of a meeting of the Asia-Pacific Economic Co-operation (APEC), where the rare blue skies were referred to as “APEC Blue”. Some observers and experts believe that it would be better if the government would develop a long-term solution to the problem instead.

"Longer term, China needs to work out a market-based approach to tackle pollution rather than an ad-hoc order. Apart from social responsibilities, business has its profit and loss to take care," said Jing Chunmei, researcher at China Center for International Economic Exchanges.

For now, though, Shanghai can expect “G20 blue” skies.

Article adapted from news.elementum.com
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

Career opportunites

Operations Manager

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Our client within the FMCG industry with a ...More

Warehouse and Distribution Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
An exciting opportunity awaits for a Warehouse and ...More

Demand Planner

  • <500 000 Permanent
Get an opportunity to be part of one ...More

Procurement Manager

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
An opportunity for a seasoned Procurement Manager, who ...More

Industrial Engineer

  • >500 000 Gauteng Industrial Engineer Permanent Procurement Consultant
An exciting opportunity that offers extensive exposure on ...More

Deputy Director: Procurement

  • >500 000 Contract Procurement Management Procurement Officer / Specialist Western Cape
Department of Economic Development and Tourism:Procurement Specialist, Ref ...More

DEMAND PLANNING MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Projects / Category Management
(Total Cost to Company R750k – R900K) excluding ...More

GLOBAL SUPPLIER PERFORMANCE MANAGER

  • >500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Salary: R 1.3M –R1.5M, dependent on level of ...More

GLOBAL CATEGORY MANAGER

  • >500 000 Contract Gauteng Procurement Consultant Projects / Category Management
Total Cost to Company R1mil – R1.2mil excluding ...More

Project Manager

  • >500 000 Contract Procurement Management Projects / Category Management Western Cape
 Description:A well-known retail organization is looking for an ...More

PROCUREMENT ANALYST

  • >500 000 Analyst Gauteng Permanent Procurement Management
Description:A leading infrastructure development group with strong presence ...More

Commodity Manager: Fuels and Lubes

  • Commodities Gauteng Permanent Projects / Category Management
 Ensuring continuity of supply in line with business ...More

Senior Facilities Manager

  • >500 000 Commodities Gauteng Operations, Planning & Inventory Permanent
(Total Cost to Company R800K – R900K) Johannesburg Our ...More

ENGINEERING STANDARDS MANAGER

  • <500 000 >500 000 Gauteng Industrial Engineer Permanent Procurement Management
(Total Cost to Company R350K – R550K) JOHANNESBURGYou ...More

Supply Chain Analyst

  • <500 000 >500 000 Permanent Procurement Officer / Specialist Supply Chain Western Cape
(Total Cost to Company R350K – R550K)  SOUTHERN ...More

Security Manager

  • <500 000 >500 000 Gauteng Permanent Projects / Category Management Strategic Sourcing
(Total Cost to Company R350K – R550K) JOHANNESBURG This ...More

Demand Planner

  • <500 000 >500 000 Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R450k – R550k, dependent ...More

Procurement Specialist-Randburg

  • >500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
(Total Cost to Company R700k – R800k including ...More

Solutions Architect

  • >500 000 Gauteng Industrial Engineer Permanent Projects / Category Management
(Total Cost to Company R1.3Mil – R1.1Mil including ...More

MANUFACTURING MANAGER - OLIFANTSFONTEIN

  • >500 000 Gauteng Permanent Projects / Category Management
(Total Cost to Company R850k – R950K including ...More