MIIT: Encourage PV calendered glass projects to be built through capacity replacement

On October 31, the Ministry of Industry and Information Technology issued a notice on the "Implementation Measures for Capacity Replacement in the Cement and Glass Industry (2024 Edition)". The Implementation Measures adhere to systematic thinking and problem orientation, encourage the advanced and eliminate the backward, implement differentiated policies for different regions and varieties, optimize the industrial layout, and enhance the green and low-carbon level.

The main contents of the revision: Firstly, the requirements for cement replacement have been tightened, making it clear that the inefficient operating capacity of cement clinker cannot be used for replacement, and the cement clinker capacity used for replacement in new projects cannot be split and transferred, etc. Secondly, the method of approving the capacity has been improved. The second is to improve the approved capacity, cancel the approved capacity based on the kiln diameter of the cement rotary kiln and the daily melting amount of glass, and promote the unification of the filed capacity and the actual capacity. Third, the implementation of regional differences in management, clearly located in the national air pollution prevention and control of key areas or the first three years of cement clinker average capacity utilization rate of less than 50% of new cement clinker production line in the provinces, in principle, shall not be replaced from outside the province capacity, etc.. Fourth, to simplify the cross-regional capacity transfer procedures, located in key areas of national air pollution prevention and control or the same legal entity within the enterprise group capacity transfer across provinces, may not be reported to the transfer of provincial departments of industry and information technology, publicity, announcements. Fifth, to strengthen the synergy with energy efficiency and environmental protection policies, and to make it clear that the capacity whose energy efficiency does not meet the requirements of the baseline level cannot be used for replacement. The Implementation Measures shall come into force from November 1, 2024 onwards.

Among other things, the Implementation Measures mention that PV calendered glass production capacity that has not been subject to capacity replacement, or industrial flat glass production capacity of no more than 150 tons per day, cannot be used for capacity replacement.

In addition, in the flat glass capacity replacement ratio pointed out that is located in the national air pollution prevention and control of key areas and non-air pollution prevention and control of key areas of flat glass capacity replacement ratio of not less than 1.25:1 and 1:1, respectively, the proportion of capacity replacement according to the regional definition of the construction site. Except for the following cases: (a) the same legal person within the same plant capacity replacement ratio of 1:1. (b) Encouragement of photovoltaic calendered glass projects to be built through capacity replacement. The replacement ratio of the construction through capacity replacement shall be implemented in accordance with the above provisions, and the capacity can be used for replacement again.

For the original text, see below:

Notice on the Issuance of the Implementation Measures for Capacity Replacement in the Cement and Glass Industry (2024 Edition)

Ministry of Industry and Information Technology Original [2024] No. 206

The competent departments of industry and informatization of each province, autonomous region, municipality directly under the central government and Xinjiang Production and Construction Corps:

The "Cement and Glass Industry Capacity Replacement Implementation Measures (2024)" is issued to you, effective from November 1, 2024, please conscientiously grasp the implementation.

Ministry of Industry and Information Technology (MIIT)

October 17, 2024

Implementation Measures for Capacity Replacement in the Cement and Glass Industry (2024 version)

Chapter I. General provisions

The State Council on the issuance of the Notice on the Action Program for Carbon Peak by 2030" and other documents, the formulation of this approach.

Chapter II. Scope of application

Article 2 These measures shall apply to all types of enterprises of all types of ownership in the People's Republic of China for new construction and reconstruction of cement clinker and flat glass projects.

Article III strictly prohibit the filing of new production capacity of cement clinker, flat glass projects. There is a need for new construction, reconstruction, must develop capacity replacement program, the implementation of equal or reduced capacity replacement. The following circumstances may not develop capacity replacement program:

(i) Relying on existing cement kilns and glass melting kilns to implement technological transformation projects that do not expand production capacity, such as pollution reduction and carbon reduction, energy conservation and consumption reduction, resource conservation and efficient utilization, and co-disposal.

(ii) New industrial flat glass projects with kiln capacity not exceeding 150 tons per day.

Article IV of the new production line should reach the current version of the "industrial key areas of energy efficiency benchmark level and benchmark level" in the cement glass industry energy efficiency benchmark level, the environmental performance level should reach A level. National air pollution prevention and control key areas are strictly prohibited to add new cement clinker, flat glass production capacity.

Article 5 The existence of one of the following circumstances cannot be used for capacity replacement:

(a) According to the requirements of the current version of the Guiding Catalogue for Industrial Structure Adjustment, the production capacity belongs to the national elimination category; the production capacity that has enjoyed the exit fund subsidies (except for the compensation and incentives due to the resettlement of the employees and the recovery of the land); the production capacity with incomplete procedures for record-keeping, environmental assessment and other approvals, and the production capacity that did not obtain the sewage discharge license according to the law, or whose license expired; and the production capacity of cement clinker that does not have cement product production licenses or whose licenses have expired.

(ii) Cement clinker and flat glass production capacity that is not within the scope of the compliance list submitted annually to the Ministry of Industry and Information Technology by the competent authorities in charge of industry and information technology at each provincial level.

(c) Energy efficiency does not meet the requirements of the current version of the benchmark level of energy efficiency in key areas of industry and the benchmark level of cement clinker, flat glass production capacity.

(d) Cement clinker and flat glass production capacity that has been shut down for two or more consecutive years since 2013 (except for the case where this is due to the staggered production program formulated or agreed to by the provincial competent authorities and due to the adjustment of the local planning), or cement clinker production capacity that has been in operation for fewer than 90 days per year for two consecutive years since 2024.

(v) PV calendered glass capacity without capacity replacement, or industrial flat glass capacity not exceeding 150 tons/day.

(vi) Cement clinker and flat glass production capacity where equipment cannot be dismantled due to debt disputes and other reasons, or where there is a situation of seizure by the court.

Article 6 The amount of capacity used for replacement shall be determined strictly on the basis of the capacity specified in the project filing (approval) documents, and the annual capacity days shall be calculated in accordance with 300 days.

Article 7 of the cement clinker production capacity used for replacement in new projects cannot be split and transferred, and the cement clinker production capacity used for reconstruction or replenishment of completed projects cannot be split and transferred to more than two projects.

Article VIII due to force majeure reasons by the local government required to suspend production for more than two years of flat glass production line, its capacity before the end of December 2025 can be used for replacement, after January 1, 2026 will not be used for replacement.

Chapter III. Replacement ratios

Article 9 Cement clinker capacity replacement ratio:

The replacement ratios of capacity replacement construction projects located in national air pollution prevention and control priority regions and non-air pollution prevention and control priority regions are not less than 2:1 and 1.5:1, respectively; capacity replacement ratios are defined according to the region where the construction is to take place. The key areas for air pollution prevention and control are defined according to the Action Plan for Continuous Improvement of Air Quality and relevant documents of the State Council. For cement clinker production capacity using the restricted category of the National Industrial Structure Adjustment Catalog and for cross-provincial replacement, the capacity replacement ratio shall not be less than 2:1, except for the following cases:

(i) The ratio of capacity replacement within the same legal person and the same plant is 1:1.

(ii) The ratio of capacity replacement within the Tibet Autonomous Region is 1:1.

(c) If the circumstances of article 11 are met.

Article X flat glass capacity replacement ratio:

Located in the national air pollution prevention and control of key areas and non-air pollution prevention and control of key areas of flat glass capacity replacement ratio of not less than 1.25:1 and 1:1, respectively, the capacity replacement ratio is defined by the region of the construction site. The following cases are excluded:

(i) The ratio of capacity replacement within the same legal person and the same plant is 1:1.

(ii) Encourage the construction of photovoltaic rolling glass projects through capacity replacement. The replacement ratio of the construction through capacity replacement shall be implemented in accordance with the above provisions, and the capacity can be used for replacement again.

(c) If the circumstances of article 11 are met.

Article XI of the national and provincial land, transportation, environmental protection and other planning or adjustment of the overall planning of prefecture-level cities, resulting in not belonging to the state ordered to phase out production capacity and did not enjoy the exit of the production capacity of the financial incentives and subsidies (due to the resettlement of employees, land recycling of compensation and incentives are excluded) of the project to relocate, relocation of the same prefecture-level cities (states, leagues, districts, etc.) within the scope of the production capacity can be carried out in accordance with the 1:1 replacement.

Article XII of Hubei, Yunnan, Guizhou, Sichuan, Anhui and other five provinces to build a new cement kiln production line to dispose of phosphorus (titanium, fluorine) gypsum, and the replacement of limestone raw materials 70% or more, can be in the province in 2020 as the basis for the total amount of cement clinker production capacity does not increase under the conditions of the province to coordinate and regulate the production capacity of the whole province, according to the disposal of phosphorus (titanium, fluorine) gypsum, scientific and reasonable determination of the number of new projects and the Layout, the implementation of equal replacement. The production capacity of newly built cement clinker production line of phosphorus (titanium, fluorine) gypsum without capacity replacement shall not be used for capacity replacement, and the production line capacity constructed through capacity replacement can continue to be used for capacity replacement.

Article XIII is located in the national air pollution prevention and control of key areas or the first three years of cement clinker average capacity utilization rate of cement clinker is less than 50% of the provincial cement clinker production line to carry out capacity replacement, in principle, shall not be replaced from outside the province capacity.

Article 14 white silicate cement, sulphur-aluminate, ferro-aluminate cement clinker construction projects to implement equal replacement, and clinker production capacity can only be replaced with the same type of products when replaced again. Other special cement capacity replacement ratio is the same as that of general-purpose cement.

Chapter IV. Replacement process

Article 15 of the construction project capacity replacement program (Annex 1) formulated by the project construction enterprises, reported to the project construction place of the provincial industry and information technology departments for examination and approval after the publicity and announcement.

The competent department of industry and information technology at the provincial level where the project is to be constructed is responsible for verifying and confirming the authenticity and compliance of the capacity replacement program, which will be publicized on the portal for not less than 10 working days, and will be announced after no objection is raised.

Article XVI of the cross-provincial replacement, in addition to being located in the national air pollution prevention and control of key areas or the same legal person within the enterprise group capacity transfer, other capacity transfer enterprises shall be developed by the transfer of capacity transfer program (Annex 2), reported to the capacity transfer place of the provincial departments of industry and information technology, public announcements, public notices. The competent department of industry and information technology at the provincial level where the capacity is transferred out verifies the transferred capacity and announces the basic information of the proposed construction project on the portal.

Article XVII is located in the national air pollution prevention and control of key areas or the same legal person enterprise group within the capacity transfer may not be reported to the capacity to transfer out of the provincial department in charge of industry and information technology, shall be transferred out of the capacity to stop production, while the capacity transfer enterprises should be transferred to the capacity to sign a contract with the enterprise to sign a commitment to require the capacity transfer enterprises to sign a letter of commitment (Annex 3), and to ensure that the capacity to transfer out of the enterprise's main equipment to be dismantled on schedule, and to do a good job of dealing with aftercare work. . The competent department of industry and information technology at the provincial level where the project is constructed is responsible for verifying the capacity transfer program, and will publicize and announce the capacity transfer program and the letter of commitment together on the portal.

Article 18 capacity replacement program mainly includes, but is not limited to, the following:

(a) The name of the enterprise to which the construction project belongs, the designed production capacity, the construction site, the specification model and quantity of the main equipment, the total amount of energy consumption and emissions, and the planned time of ignition and commissioning.

(ii) The name of the enterprise whose production capacity is transferred out, unified social credit code, specification model and quantity of the main equipment, address, filing or approval documents, planned shutdown time and planned dismantling and withdrawal time, and production license.

Article 19 of the new cross-provincial projects, the project construction of provincial industry and information technology departments before the public announcement of the capacity replacement program, should be entrusted to industry organizations or intermediaries to convene hearings. Hearing participants are generally composed of representatives of the government, associations, enterprises, the public, the media, etc., to fully demonstrate whether the capacity replacement program is consistent with relevant national policies and regional development requirements.

Article 20 for the replacement of production capacity, the construction project must be put into operation before the shutdown and dismantling of kilns and other major equipment, cancellation or change of production license, sewage license. Enterprises using the original equipment to stay as industrial heritage (industrial tourism), in order to ensure that no production of cement or flat glass, a one-off report to the provincial industry and information technology departments for finalization.

Article 21 of the capacity replacement program has not been implemented or significant changes in the content, the capacity transfer enterprises and transferee enterprises by consensus, the competent provincial departments of industry and information technology to verify the confirmation of the program to be withdrawn or changed, and announced to the community. If the program is changed, withdrawn or invalidated, the capacity that meets the requirements can continue to be transferred out.

Article 22 of the capacity replacement program within two years from the date of announcement, the project construction enterprises should complete the record and environmental assessment and other procedures, within three years to complete the project construction and ignition and put into operation, overdue capacity replacement program is invalid.

Article 23 has completed the announcement of the capacity replacement program, before the implementation of these measures did not start the construction of the project, should be completed by the end of December 2026 ignition and put into operation; not completed, after January 1, 2027 capacity replacement program is invalid.

Chapter V. Supervision and management

Article 24 of the project construction of provincial-level departments in charge of industry and information technology, in conjunction with the relevant departments in accordance with the division of responsibilities, is responsible for overseeing the implementation of the capacity replacement program, such as the existence of fraud and other acts, to the relevant departments in accordance with the requirements of investment, environmental protection and other relevant policies and regulations to deal with the requirements of the project shall not be ignited before the rectification in place to put into operation. In conjunction with the relevant departments, regular spot checks shall be carried out, and the capacity replacement program shall be withdrawn in a timely manner for construction projects that have not been implemented in accordance with the requirements of these Measures.

Article 25 In addition to the provisions of Article 17 of the non-reporting of capacity transfer out of the competent provincial departments of industry and information technology, capacity transfer out of the competent provincial departments of industry and information technology shall supervise the capacity transfer out of the enterprise in accordance with the commitment of time requirements to shut down and dismantle production lines used for the replacement of production capacity, and to organize on-site verification of the situation of the shutdown and dismantling of the announcement to the community. In case of capacity transfer located in the key areas of national air pollution prevention and control or within the same legal person enterprise group, if it involves cross-provincial replacement, the competent department of industry and information technology at the provincial level where the project is to be constructed shall inform the competent department of industry and information technology at the provincial level where the capacity is to be transferred in a letter of the situation of capacity transfer, and shall announce the capacity replacement plan after on-site verification of the shutdown and confirmation of completion of post-processing of the enterprise, and on-site verification of the equipment dismantling before agreeing the construction project to Ignition of production.

Article 26 The competent authorities in charge of industry and information technology around the world to further open up reporting channels, timely in the portal to the community in a variety of forms of reporting such as telephone, fax, e-mail, network, and other forms of reporting, to accept social supervision. Encourage associations, enterprises, the public, the media and other capacity replacement program implementation and construction projects to carry out supervision.

Article 27 The Ministry of Industry and Information Technology, in conjunction with the relevant departments, will organize random inspections of the capacity replacement program and its implementation, and order rectification within a certain period of time in areas where the verification of the capacity replacement program is lax and the supervision of its implementation is not in place. The relevant departments in each region shall, in accordance with the law, deal with enterprises that fail to implement the capacity replacement policy and hold the relevant personnel responsible.

Article 28 These Measures shall come into force from November 1, 2024 onwards. The Measures for the Implementation of Capacity Replacement in the Cement and Glass Industry (former No. 80 of the Ministry of Industry and Information Technology [2021]) shall be repealed simultaneously.

Annex:

1. Capacity replacement program for xxx company's xxx tons per day (cement clinker/flat glass) project

2.xxx Company xxx tons per day (cement clinker/flat glass) project capacity transfer out program

3. Enterprise commitment

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