Shandong Province, a key player in China's chemical fertilizer industry, officially released the "Guidelines for the Adjustment and Rejuvenation of the Chemical Fertilizer Industry in Shandong Province" on May 11th. The guidelines aim to elevate the technological standards of major fertilizer companies in the province to match global benchmarks by 2011. It also sets targets such as achieving advanced energy efficiency in ammonia production, increasing the share of high-concentration fertilizers beyond 96%, optimizing industrial layouts, and promoting industrial clusters. Additionally, key economic indicators like sales revenue, profits, and taxes are expected to grow by an average of 15% annually.
For years, Shandong has led the country in nitrogen fertilizer production and holds a significant position in phosphate fertilizers. However, the industry still faces challenges, including a lack of large-scale, leading enterprises and heavy reliance on external raw materials—especially Shanxi anthracite. To address these issues, the guidelines emphasize stricter project management and control over overcapacity projects, particularly in nitrogen and compound fertilizers. A unit-product energy consumption review system will be implemented, with investments only approved if they meet or exceed provincial standards.
Over the next three years, the main players in Shandong’s fertilizer industry will be organized into five regional clusters to improve their resilience against market fluctuations. The province will also leverage national and local research centers to enhance R&D in production technologies and backup projects. Innovation efforts will focus on four key areas: adjusting raw material structures, reducing energy use and emissions, developing new products, and advancing scientific fertilization techniques.
According to the guidelines, Shandong plans to transform 20% of its nitrogen fertilizer raw materials from traditional sources to benzene coal gasification, using local resources to reduce dependency on Shanxi anthracite. Energy-saving and emission-reduction initiatives will prioritize integrated energy-saving technologies in ammonia production. Companies will also be encouraged to expand their product lines, producing items like formaldehyde, formic acid, acetic acid, and dimethyl ether to boost added value. Moreover, the development of new fertilizer types, such as coated-controlled release, inhibitor-based slow-release, and amino acid-chelated fertilizers, will be actively supported.
A representative from the Shandong Provincial Economic and Trade Commission noted that after years of growth, Shandong has become China's top fertilizer production base. To revitalize the industry, the province must rely on existing enterprises, control overall production capacity, accelerate adjustments in raw material sources, product structures, and technological upgrades focused on energy saving, environmental protection, and safety. The release of the guidelines is expected to drive the formation of fertilizer industry clusters and help Shandong transition from a fertilizer-producing province to a more advanced and sustainable chemical industry hub.
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