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According to a report from the China Chlor-Alkali Industry Association on December 26th, the association has released a draft titled “Safe Access Conditions for the Caustic Soda Industry (Draft for Soliciting Opinions).†This document outlines strict requirements covering production layout, equipment and process standards, safety facilities, storage and transportation, safety standardization, responsibilities, and supervision. These new conditions are expected to be officially released next year, setting higher barriers for entry in the caustic soda sector.
Industry insiders believe that these stricter regulations will significantly boost the competitiveness of leading companies while accelerating the industry’s restructuring. The new rules require all new, expanded, or relocated caustic soda projects to adopt the ion membrane production process. Existing facilities using this technology (unless they are involved in resource recycling) will no longer be eligible for license renewals after their current permits expire, starting from January 1, 2016.
Regarding plant location, the draft mandates that new caustic soda producers must comply with the “Chlorine-Alkali (Caustic Alkali, PVC) Industry Access Requirements.†They should also be located within industrial parks or designated areas approved by local governments. Projects within such zones must meet the “Sanitation Plant Protection Distance Standard for Chlor-alkali Plants (Electrolysis Alkali Production)†and align with broader land use plans.
Existing caustic soda plants not situated in these approved areas are expected to relocate or shut down by the end of 2015, as per the guidelines. This move is seen as a key step toward improving safety, efficiency, and environmental management in the sector.
Looking ahead, the industry anticipates that the tightened access rules will lead to a more stable and competitive market. With factors like reduced capacity utilization, tight logistics, capital withdrawal, and stable exports, the medium-term outlook for the caustic soda market is expected to gradually improve. As a result, the sector may see a renewed wave of investment and growth in the coming years.