On March 8th, the ‘Implementation Measures for Capacity Replacement in the Fertilizer and Chlor-alkali Industries in Shandong Province’ (hereinafter referred to as the ‘Implementation Measures’) was issued, which clearly stipulated the scope of application for capacity replacement, recognition standards for capacity indicators, methods of obtaining capacity, procedures for changing replacement plans, and the responsibilities of both parties involved in the replacement. The Implementation Measures will be valid for three years, from March 29th, 2024 to March 28th, 2028. Among them, the fertilizer industry includes urea, monoammonium phosphate, diammonium phosphate, and synthetic ammonia used for fertilizer production.

According to the information, the ‘Implementation Measures for Capacity Replacement in Shandong′s Tire, Chlor-alkali, and Fertilizer Industries’ issued in September 2020 clearly stipulated that the capacity replacement ratio for chlor-alkali and fertilizer was 1.05 to 1, but this time it is clearly noted at a ratio of 1 to 1. The head of the Fertilizer and Chlor-alkali Group of Shandong Provincial Chemical Special Action Office stated that in accordance with the national ‘High Energy Consumption and High Emissions’ industry management requirements, Shandong Province implements total capacity control for chlor-alkali, fertilizer, and other industries, and new projects require capacity replacement. This means that the capacity of chlor-alkali and fertilizer in the province will remain unchanged at its current scale.