China Environmental Regulator to Review Sinopec Yizheng Plant

China's environmental watchdog said it will re-evaluate its approval for a purified terephthalic acid project by Sinopec Yizheng Chemical Fibre Company (600871.SH) in east China's Jiangsu province.

Environmental impact data need to be re-submitted to the authorities for a fresh review due to lengthy delays in the project, which is designed to annually produce up to 1 million metric tons of the chemical that is used in making polyester, the Ministry of Environmental Protection said in a statement posted on its website Thursday.

The project in Yangzhou was initially approved in 2005, but construction has been stalled by technical issues.

The company is also planning to add another 1 million ton facility in an industrial park near the site. This project needs to be approved separately, the statement said.

Local residents have complained about waste water treatment at the industrial park but testing hasn't revealed any problems at that site, according to the statement.

Far Eastern Yihua Petrochemical (Yangzhou) Corp., a joint venture between Yizheng and Far Eastern New Century Corporation, a subsidiary of Taiwan's Far Eastern Group, is to undertake the projects, the statement said. CNPC is the controlling shareholder of Yizheng.

Beijing has recently stepped up scrutiny of projects that have potential environmental problems, particularly as residents become more vocal about their opposition to polluting industries.

(downstreamtoday.com, Edited by Topco)