The slogan "Change of Cages for Birds" was introduced by the Zhejiang Provincial Government last year, aiming to phase out outdated production methods and make room for more advanced, efficient industrial practices. This initiative is part of a broader effort to shift from an extensive to an intensive economic model, promoting sustainable and high-quality growth. But what exactly constitutes advanced and backward productivity? While the former has been clearly outlined in the "Zhejiang Province's Advanced Manufacturing Base Key Areas, Key Technologies, and Product-oriented Catalogue," the latter remained somewhat unclear until the release of the "Catalogue of Outdated Manufacturing Capacity for Restricting and Eliminating Manufacturing Industries in Zhejiang Province." This document provides specific guidelines on which industries and technologies should be phased out.
Among the industries targeted is the petrochemical sector, which plays a crucial role in Zhejiang’s economy. The Catalogue lists 34 restricted and 25 outdated production processes, technologies, and products within this sector. Restricted projects include large-scale polyester and polypropylene plants, ethylene facilities, and certain types of PVC and sulfuric acid production units. Banned items range from low-quality refined oil products to small oil refineries, outdated tire manufacturing, and even traditional earth refining methods. These outdated technologies are not only inefficient but also pose serious environmental and safety risks.
Despite being banned or restricted at the national level, many of these outdated facilities still operate in some regions. This highlights a gap between policy and practice, where highly polluting, energy-intensive projects continue to find space. To address this, Zhejiang has taken a comprehensive approach by defining backward manufacturing more clearly and setting strict guidelines for regulatory cooperation. Authorities are now required to prevent the approval of new or expanded projects that use outdated equipment or technology. Additionally, they must ensure that existing companies comply with the Catalogue’s provisions.
Companies that fail to adhere to the regulations may face severe consequences, including production halts, license revocations, and financial penalties. Banks are instructed to stop lending to non-compliant enterprises, while power and management departments must restrict supply. Over time, these measures will gradually eliminate the survival conditions of backward industries, forcing them to either modernize or exit the market.
The introduction of the Catalogue serves as a wake-up call for petrochemical companies still relying on outdated technologies. With Zhejiang's economic growth slowing and efficiency declining, the industry faces mounting challenges, including resource scarcity, energy constraints, and environmental pressures. Many petrochemical firms are still operating with low-tech, high-pollution methods, which have led to growing public concern.
To stay competitive and sustainable, the industry must embrace change. Companies should proactively replace outdated processes with advanced technologies, improve efficiency, and reduce environmental impact. By doing so, they can transition from an old, inefficient model to a more modern, sustainable one. This transformation is not just a regulatory requirement—it’s a necessary step toward long-term success and environmental responsibility.
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