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How should the hardware abrasives industry face environmental protection policy?
**Abstract**
The screening of the furnace was just one signal. A week after the conclusion of the 18th National Congress, the Ministry of Industry and Information Technology announced that it had "released the provisions on the 'Several Opinions on Promoting the Healthy Development of the Refractory Industry (Draft for Comments)'". In the "final draft", it was clearly stated that refractory materials should be strictly controlled, energy conservation and emission reduction should be vigorously promoted, backward production capacities should be phased out, and mergers and reorganizations should be encouraged to optimize the industrial structure, improve concentration, realize planning benefits, enhance independent innovation, and accelerate technological transformation. These measures aim to protect the ecological environment and promote the development of high-quality industries.
In the process of screening outdated production capacity, fixed furnaces used for brown fused alumina and white corundum will be targeted. Specifically, brown fused alumina melting furnaces with a transformer power below 4000 kVA and white corundum melting furnaces with a transformer power below 3150 kVA will be eliminated. This is part of the broader effort to regulate the industry and ensure sustainable growth.
I have spoken with many economic analysts about environmental issues in the abrasives sector. Liang Zhihong, chief engineer at Shandong Luxin High-tech Industry Co., Ltd., believes that investors who once profited from cheap power, resources, and labor will no longer have an advantage. The government is increasingly focusing on environmental protection, and support for emerging green industries is expected to grow. In short, abrasive companies must embrace environmental responsibility early, or they risk being forced out of the market. The proposal for "ecological civilization" at the 18th National Congress reflects this growing emphasis on sustainability.
From an ecological perspective, the abrasives industry has long been a high-energy-consuming and polluting sector. In recent years, the rapid expansion of small and medium-sized enterprises has led to the use of outdated equipment and inefficient technologies, resulting in severe pollution and resource waste. The government has intensified its efforts to address these issues, implementing stricter environmental policies across various industries, including abrasives. This tightening regulation is not only inevitable but may even determine the survival of some companies.
Starting from the second half of 2011, due to land acquisition, urban planning, and environmental cleanup, many abrasive companies in Shandong, Henan, and Guizhou were forced to halt production. These events serve as a warning that the government may adopt more stringent, enforced measures in the future to maintain ecological balance.
**"Deformation" to Survive: A Few Happy Families**
After the release of the "Final Draft," the Abrasives Branch of the China Machine Tool Industry Association held a "White Corundum Key Company Symposium" on December 6, inviting several domestic abrasive companies to discuss the new regulations. Dai Chijun, director of the Abrasives Professional Committee, emphasized that in 2005, the government also introduced similar measures targeting white corundum furnaces with a transformer power of 3150 kVA or higher. At that time, most companies were small and met the standards, and through the joint efforts of the association and the companies, the policy was eventually revised before implementation. This time, the "final draft" extends further into the abrasive industry, signaling a clear trend toward phasing out outdated equipment and promoting professionalization—something that cannot be reversed.
Zhao Gansheng, general manager of the Bailu Abrasives Marketing Center, noted that the government’s final draft aims to control overcapacity in the white corundum industry and promote its healthy development. However, the technical feasibility of this approach remains questionable. For some producers, large furnaces are not cost-effective, and their production processes are difficult to manage. Small furnaces, on the other hand, are better suited for specialized products. Therefore, simply using transformer capacity as a criterion to judge production efficiency is not sufficient. Currently, there is no evidence that large furnaces are superior to small ones in terms of technical or economic performance. While the government’s intention is commendable, the implementation method may not align with current industry conditions.
Liang Zhihong, chief engineer at Shandong Luxin High-tech Industrial Co., Ltd., also spoke at the meeting, arguing that it is inappropriate to screen all fixed furnaces. He suggested that the government should take into account the unique importance of certain corundum types. With the advancement of technology, new white corundum products such as alloy corundum have emerged, although their volume is limited, they are crucial for fields like aerospace. These products can only be produced in small furnaces. Additionally, he pointed out that domestic white corundum producers face many technical challenges, particularly regarding sodium oxide content. Fixed furnaces help remove impurities and improve product quality.