The resumption of dye production is nowhere in sight! After Jiangsu Anocy and Tongcheng Fine Chemicals announced that they would withdraw from the Xiangshui Ecological Chemical Park, Xiangshui Henglida, a subsidiary of listed company Jiangsu Wuzhong, intends to withdraw from the park and will receive compensation of nearly 400 million yuan. To see the following reports

On October 13, Jiangsu Wuzhong Industry Co., Ltd. announced that its wholly-owned subsidiary, Xiangshui Henglida Technology & Chemical Co.

According to the announcement, due to the impact of the “Xiangshui 3-21 Explosion”, the production of Xiangshui Henglida has been suspended. According to the requirements of Jiangsu Province Chemical Industry Safety and Environmental Protection Remediation and Upgrading Plan and Resignation Compensation Policy for the Enterprises in the Xiangshui Ecological Chemical Industry Park and other relevant documents, and after evaluating the current status of the plant, Xiangshui Henglida intends to sign a Resignation Compensation Agreement with Jiangsu Xiangshui Ecological Chemical Industry Park Management Committee, with a total compensation cost of approximately 395.5 million Yuan. After deducting the relevant payments, the actual compensation expenses totaled approximately 384.6 million Yuan.

As to the main reasons for signing the Withdrawal Compensation Agreement, the Announcement stated that, at present, the Qingshui Ecological Chemical Park is in a closed state and most of the enterprises in the Park have signed the Withdrawal Compensation Agreement with the Park, which will lead to a significant increase in the subsequent public supporting costs for water, electricity, gas, etc.; Jiangsu Wuzhong Department has fully demonstrated that the rectification process of Qingshui Henglida requires continuous investment of large amounts of funds, the rectification cycle is relatively long, and whether the final rectification process can be carried out in a timely manner. Resumption of production is still uncertain; at the same time, even after rectification and resumption of production, the subsequent expansion of production capacity at the original site is extremely difficult, and the development space is greatly restricted.

According to the announcement, there are many external influencing factors in the project, so there is great uncertainty in this exit disposal work. Xiangshui Henglida will formally sign the Exit Compensation Agreement after the relevant decision-making process of the company is passed.

According to the data, Xiangshui Henglida was established on July 21, 2010, and its products mainly involve organic pigments, disperse dyes and other products.

In July this year, dyestuff enterprise Shanghai Anocy Group announced that Jiangsu Anocy has signed an “Exit Compensation Agreement for Enterprises in the Xiangshui Ecological Chemical Park”, and received compensation costs of about 53.56 million yuan; Tongcheng New Materials announced that its holding subsidiary Tongcheng Fine Chemicals (Jiangsu) Co.
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