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Shenzhen Noposion Agrochemicals Co., Ltd.(Shenzhen Noposion) is facing a pollution scandal again. Changlong Chemicals Co., Ltd. (Changlong Chemicals), as one of Shenzhen Noposion’s subsidiaries, is accused of secretly burying hazardous solid waste in its original factory. If found guilty, Shenzhen Noposion could again face huge fines for the pollution from its subsidiary, according to analysts CCM.
Image Source: Baidu
Till
now, the Changzhou government has already launched a full investigation into
this pollution event. Several schools beside the factory have already forced to
be closed temporarily.
“It
is already the second time for Shenzhen Noposion to cope with the aftermath of
its subsidiaries” commented Chen Zaoqun, Editor of Glyphosate
China Monthly Report.
Actually,
in Dec. 2014, another subsidiary of Shenzhen Noposion, Jiangsu Changlong Agrochemicals Co., Ltd. (Changlong Agrochemicals) was charged of pouring waste
water into Yangzi River and it was fined over RMB 80 million.
“If
again, Changlong Chemicals is found guilty, Shenzhen Noposion will have to pay
for the fine for the pollution. It may probably limit its production because
the government will be stricter with its emissions from its production.”
“Also,
it will do harm to Shenzhen Noposion’s image. After all, Shenzhen Noposion has
just been its shareholder for only two years. And it has already given it two
pollution scandals to deal with.”
“Without
any steady profits, Shenzhen Noposion has already lost its money in the
pollution problem from Changlong Chemicals” added Chen.
Buried the waste
before moving away
“Before
the removal of the Changlong Chemicals’ factory, it buried a huge amount of
chemicals hazardous waste under the ground” claimed Xu Jianwei, who had worked
in Changlong Chemicals for more than 30 years and retired in 2013.
“Influenced
by the report by Zhou
Jiangang about the chemicals hazardous waste under Jingjiang, I decided to
report such a pollution scandal to the government and not to keep the secret
anymore.” Xu told National Business Daily.
Followed
Xu back to the original factory, the journalist of National Business Daily
found it very pungent when they arrived near Changzhou Trina International
School and Changzhou Foreign Languages School, where are just one street across
the original factory.
When
they went closer to the original factory, they found out that the 3-metre tall
concrete barriers were built around the area of the factory and monitoring cameras were set
up on the wall. Huge engineering machines parked inside the barriers. The only
one entrance was closed by two blue iron gates and read in red: "Construction
Areas. No entry.", which was guarded by two security guards. Every vehicle should
be inspected to get inside.
“The
government is investigating. It is said that it is poisoned inside and the
government is dealing with it. It is not open to the public” the security guard
in front of the area of original factory told National Business Daily.
According
to the security guard, the area of the factory had no smell usually. However,
once it was being dug, there was very pungent smell and the soil that dug out
would be send to burn immediately.
The
area which was buried with chemical hazardous waste was where the original
factory of Changlong Chemicals was. The factory of Changlong Chemicals moved to
a new place in 2008.
Before
the removal, Changlong Chemicals dug a big hole 70-80 meters away from the
river, according to Xu.
The
hole was 5 or 6 meters deep with the length and width over 50 meters. The
hole-digging project lasted for tens of days. During the periods, several
trucks poured the chemicals hazardous waste from the factory into the big hole.
After the burial, Changlong Chemicals covered the hole with the soil dug out
before.
The
area of the factory was about 26.7 ha. Most of the surface had been dug. The
soil that was dug out was brown-red. The factory was filled with the pungent
smell of pesticides, according to National Business Daily.
The
area of the original factory was just 70-80 meters away from the river. It was
a rectangle with the width over 50 meters and length over 100 meters. According
to Xu, he could see the river in the original factory and the river was
actually a branch of Yangzi River.
The government
already got involved
Changlong
Chemicals was established based on the reorganization of the original Changzhou
Pesticides Factory and Changzhou Organic Chemicals Factory in 2000. In 2010,
Changlong Chemicals had completed its removal.
In
July 2013, after the optimization and reorganization of assets, Changlong
Chemicals became one of the subsidiaries of Shenzhen Noposion, the biggest
pesticide formulas producer in China.
In
fact, just before the report from Xu, the area of the original factory had
always been complained for its odors and project of contaminated land
remediation by Changzhou Trina International School and Changzhou Foreign
Languages School, its nearby schools.
In
2014, Changzhou government stated to the public that the first-stage of the
soil remediation project was in charge by Changzhou High-tech Industrial
Development Zone Development (Group) Corporation. And it was the Changzhou
Black Peony Fertilizer Group that implemented the project.
In
Jan.4 2016, Changzhou Environmental Protection Bureau (Xinbei District)
illustrated about the project of soil remediation on the area of Changlong
Chemicals’ original factory. It stated that: “Recently, our Bureau received
complaint from some students and parents that there is odor coming from the
process of the remediation project. In Dec. 25, our Bureau had requested
Changzhou Black Peony Fertilizer Group to stop the remediation and issued a
notice for it to rectify the whole project within time limits. Now, the project
has been stopped and in the meanwhile, our Bureau has already delegated a
professional inspection institution to monitor the air around this area.”
Negatively affected
Shenzhen Noposion
After
the complete removal in 2010, Changlong Chemicals has divided into two modern
factories. One is located in Changzhou National Hi-tech Industrial Development
Zone and focuses on producing products like fine chemicals and intermediates.
The other one is Jiangsu Changlong Agrochemical Co., Ltd. (Changlong
Agrochemical), which lies in China Fine Chemicals (Taixing) Development Zone
and focuses on producing products like pesticides technical and phosgenation.
Currently, both Shenzhe Noposion and Changlong Chemicals take the share holdings
of Changlong Agrochemicals for 35% and 65% respectively.
Besides
the fact that the original factory of Changlong Chemicals buried the chemicals
hazardous waste under the ground, Changlong Agrochemicals also secretly
discharged the waste water, according to Xu.
In
fact, before Xu’s retirement, he was appointed to Changlong Agrochemicals to
serve as production scheduler.
“Changlong
Agrochemicals discharged the waste water once every 3 days. Every time, it
discharged the waste water for about 40 minutes, and the volumes reached to 2
or 3 thousand tonnes.” said Xu.
Jiangsu
Taixing Environment Protection Bureau stated that, since Changlong
Agrochemicals moved to China Fine Chemicals (Taixing) Development Zone, the
Bureau has always kept supervising Changlong Agrochemicals. It had been
inspected by the Bureau several times because of the problem of excessive
emissions of waste gas, water and residue.
Actually,
in Feb. 2015, Shenzhen Noposion was rejected on its non-public offering shares
due to the pollution problem from Changlong Agrochemicals.
According
to China Securities Regulatory Commission, Shenzhen Noposion applied to
non-publically offer RMB110 million shares to less than 10 specific respondents in
the price of not lower than RMB6.92/share. The total of raised fund was no more
than RMB733 million. Shenzhen Noposion aimed at investing the funds in its 3
projects: agriculture information platform based on O2O, the evaluation and development of new
pesticide compound, and new product registration and supplement of
liquid capital.
However,
Shenzhen Noposion’s application was not approved finally.
Later,
China Securities Regulatory Commission released a document of Decision about
Disapproval of Shenzhen Noposion Agrochemicals Co., LTD. Offering Non-public
Stock. In the same time, China Issuance Examination Committee pointed out that
during Jan. 2012 to Feb. 2013, Changlong Agrochemicals handed over the
hazardous waste to some contractor without quality to deal with the waste
water, and had led to serious water pollution and damaged the environment.
CCM
will continue following this story closely and will post further updates in our
pesticides market Newsletters as more details emerge.
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