The central government’s environmental protection inspectorate released a feedback report to the Shandong provincial government on the environmental issues on December 26, which highlights the illegal capacity issues of Weiqiao Group and Xinfa Group.

Binzhou City, where Weiqiao is headquartered, forged certificates of completion in 2014 to obtain the central government’s approval for 2.44 million tons of aluminum capacity that was not completed, and concealed some other illegal aluminum smelter projects under construction. Liaocheng City also provided false materials in May, 2014 for a 450,000-ton aluminum smelter project of Xinfa Group. In addition, the inspectorate criticizes that Weiqiao and Xinfa have illegally installed 45 and 9 sets of coal-fired power-generating units respectively since 2013 but local governments did not take effective measures to stop.

The inspectorate demands that Shandong provincial government submit a rectification plan to the State Council within 30 working days. It is anticipated that Shandong Province may further cut its aluminum capacity. We will pay close attention to the responses from the government of Shandong Province.

For more related policy analysis, please refer to the following articles:
The Promised Road: Where is China’s Aluminium Industry Headed? (Part 1)
The Promised Road: Implementing Aluminium Capacity Cuts (Part 2)

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