(Yicai Global) June 13 -- Anhui Conch Cement, China's largest cement producer, had to shut down some clinker production lines in Tongling, the eastern Anhui province, under stricter environmental regulation introduced by the local government.
The government ordered its wholly-owned subsidiary Anhui Tongling Conch Cement to close a wharf late last month, resulting in the suspension of clinker facilities with a combined production capacity of around 8.7 million tons, accounting for 58 percent of the total, the Wuhu-based company said in a statement yesterday.
The local authority has ordered its shutdown for environmental considerations as the wharf is located within the water source conservation area, the statement said.
The wharf used to serve as the gateway for both water transportation of cement and clinker products and raw coal procurement, and some production lines had to be suspended following its closure, it added.
Clinkers produced by the subsidiary were mostly supplied to cement grinding plants affiliated to Conch Cement in coastal and riverside areas, and the company will ensure normal operations at the plants through centralized deployment of internal resources.
The production shutdown was not caused by any noncompliance practices, Conch Cement said, adding the wharf was built in 1987 with the permission of all related government departments and regulators. The wharf is equipped with all necessary environmental protection facilities and meets the environmental regulatory requirements. The water conservation area was formed in 1992, it said.
The company will communicate with the Tongling local government to work out a solution and resume operation at the wharf as early as possible.
Editor: Mevlut Katik