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The Environmental Storm Caused The “Titanium Valley” To Be Near
Aug 28, 2018

Since last week, the Baoji area has ushered in an eight-month environmental inspection. To everyone's surprise, the impact of this environmental inspection is so great that almost all local businesses have stopped production.

A week before the environmental inspection, Ruidao and local titanium processing companies discussed the impact of the upcoming environmental inspection. At that time, everyone’s judgment was that some enterprises might close because of sewage problems. However, with the unfolding of inspections, almost all of the titanium processing enterprises in the Baoji area were affected and stopped production. The “China Titanium Valley” faced “the disaster of extinction”.

The environmental inspection has been carried out for 10 days. In this environmental inspection, the main problem is that the wastewater and dust are not up to standard. Ruidao learned that not only the private titanium enterprises in Baoji City were almost completely destroyed, but the power supply of the factory was interrupted. Baoti Group also had individual workshops that stopped production because they did not meet the standards. Enterprises in the surrounding areas of Baoji are also treated the same, and many counties and village governments have stopped water and power cuts. As a result, at least 95% of enterprises in Baoji City and surrounding areas have stopped production due to environmental inspections.

Different from the typical heavy pollution industries such as metallurgy and chemical industry, in the concept of people, the impact of the mechanical processing industry on the environment is very slight. It seems that there is not much overlap between the environmental protection and the machine industry. But when the environmental inspection came, we learned the severity of the relevant policies. Even if the emissions are extremely small, dust and sewage are not allowed to be treated in a qualified manner. The lack of understanding of relevant policies can be said to be the main cause of the environmental earthquake. On the other hand, in the week before the inspection is about to begin, local companies are not aware of specific environmental regulations, and do not understand what standards are used to define whether the company is up to standard. What caused this situation? Is the company not aware of environmental protection, or is the relevant department not doing a good job of publicity, or is the inspection standard not clear in advance? If the company, the local government, and the inspection team can clearly define opinions and reach a consensus before the environmental inspection begins, perhaps the impact will not be as deep as it is now. The most important thing to solve the current problem is to clarify the standards for environmental inspection as soon as possible. There is no clear standard, which can only make the company not know how to change it, feel overwhelmed, and directly attacked by the verification storm. Clearly check the standards so that the company does know where there are gaps, and where improvements are needed, the company will naturally move toward the goal and assume corresponding obligations.

As the largest titanium industry base in China, Baoji has a huge impact on its overall shutdown. Because they don't know when they can resume production, many companies are afraid to pick up orders, and there may be cases where orders have not been delivered on time. If this situation continues to be constant, domestic titanium supply will inevitably be affected, and price increases will be inevitable. For local companies, policy uncertainty will bring huge operational risks. If this risk cannot be ruled out, local companies may gradually migrate outwards to obtain a higher operating environment. The “China Titanium Valley” is facing the test of survival.

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