The MIIT Published the Name List of the First Batch of Enterprises Conforming to the ”Standardization Conditions for Aluminum Industry”

On April 15, the Ministry of Industry and Information Technology published the name list of the first batch of 36 enterprises conforming to the ”Standardization Conditions for Aluminum Industry”. Luo Tiejun, Deputy Director of the Department of Raw Material Industry of the Ministry of Industry and Information Technology, said when receiving interview from the Economic Daily that it’s equivalent to a “Red List” of the aluminum industry, enterprises outside the name list will not be eligible to receive policy support in finance, taxation, and banking aspects.

Luo Tiejun said the aim of this name list is to strengthen in-progress and afterward supervision, with the emphasis placed on quality, environmental protection, and energy consumption to standardize enterprise behavior,promote the inter-linkage between industry policy and policies on land resources,environmental protection, finance, energy, and import/export, and ensure fair competition.

According to introduction by industry insiders,at present China’s electrolytic aluminum production capacity has reached 32 million tonnes, in 2013 alone there was about 5 million tonnes of newly added capacity, problems such as chaotic expansion of production capacity,and low industry concentration degree are becoming increasingly prominent. In 2013, the aluminum smelting industry sustained a loss of 2.3 billion yuan, between January and February 2014 the aluminum smelting industry suffered a loss of 2.93 billion yuan, making it the only sector with loss in the nonferrous metal industry this year.

Luo Tiejun pointed out facts prove that for competitive industries like electrolytic aluminum industry, merely depending on singular approval by the state government could no longer adapt to the needs of market economy development under the new situation,enterprise production and operation are facing a series of policy obstacles, which seriously affects enterprises’ normal production and operation.

Consequently, on the one hand, the Ministry of Industry and Information Technology shifted the focus of management toward the electrolytic aluminum industry from prior approval to in-progress and afterward supervision, amended and unveiled the ”Standardization Conditions for Aluminum Industry”, from the aspects of product quality,environmental protection, energy consumption and integrated utilization, technological equipment, deployment and external conditions, safety & sanitation and social responsibility, it put forward higher standard for existing enterprises and newly build projects.

On the other hand, the Ministry of Industry and Information Technology enlarged the size of enterprises being admitted into standardized management, intending to create market environment for fair competition. To this end,Wen Xianjun, Vice President of China Nonferrous Metals Industry Association, said the “Red List” for prior approval should be big,and the “Black List” should be small, only in this way can it incorporate more enterprises into standardized management system.

According to introduction, for aluminum manufacturers launched into production before the end of 2013, so long as they conform to the ”Standardization Conditions”, they can be incorporated into the scope of standardized management by the state government. the Ministry of Industry and Information Technology will also conduct dynamic supervision on aluminum manufacturers, if manufacturers with existing problems can speed up upgrading and renovation, after meeting requirements they can still be included into the “Red List”, manufacturers failing to meet requirements of the Standardization Conditions will also be stripped of its “Red List” eligibility; manufacturers that pollute the environment, waste energy and fail to meet quality criteria must be firmly closed down.Luo Tiejun disclosed that the Ministry of Industry and Information Technology will steadily drive forward standardized management work for the aluminum industry,before the end of the year it will try to publish another name list of 1 to 2 batches of aluminum manufacturers conforming to the“Standardization Conditions”, striving to finish overall straightening of the nationwide electrolytic aluminum manufacturers by the end of the “Twelfth Five Year Plan”.

In 2007, the National Development and Reform Commission joined related departments to compile the “Access Conditions for Aluminum Industry”. In 2012, the Ministry of Industry and Information Technology amended the “Access Conditions for Aluminum Industry (2007)”,added requirements on quality.The ”Standardization Conditions for Aluminum Industry” promulgated in 2013 put forward higher requirements in the criteria on environmental protection and energy consumption, which aims to guide manufacturers to focus efforts on environmental protection, energy saving,quality and social responsibility.

Electrolytic aluminum is a high energyconsuming industry; power consumption is a key standardization criterion. As a result,the ”Standardization Conditions for Aluminum Industry” promulgated in 2013 required existing manufacturers’ A/C power consumption of aluminum liquid electrolysis per tonne to be 13350 kWh, 1100 kWh less than that in 2007.

In the aspect of environmental protection, the new “Standardization Conditions” raised fluorine emission of electrolytic aluminum projects from below 1000g/tonne aluminum to 600g/tonne aluminum, and required the installation of online monitoring device, and organizing regular fugitive emission monitoring on positions such as roof window in electrolysis and baking workshops.