The State Council has issued a guidance on relocation and transformation of hazardous chemical production enterprises in densely populated areas.

The move will overhaul the enterprises that fail to meet standards in safety and minimum distance to residential areas, reduce dangerous chemical incidents, protect people’s lives and promote upgrading the petrochemical industry, the circular said.

By 2025, any unqualified enterprises will be revamped to meet standards, move into standardized industrial parks, or be shut down.

The key tasks of the government include carrying out inspections on the layout of hazardous chemical production enterprises and recording substandard enterprises in dense areas.

Local governments will make plans to relocate and transform those enterprises. The plans, which will clarify the scope, target, schedule, organization form and staff resettlement measures, should solicit public opinion and be made public before being adopted.

They are also urged to speed up approval procedures for the revamp projects, and offer help to the enterprises to minimize disruptions to their production and operation.

The enterprises to be relocated are banned from setting up and expanding more hazardous chemical projects at their original site, the circular stated.

It is necessary to formulate plans on abandoning hazardous chemicals, and clearing and safely disposing of any remaining waste before dismantling related facilities and buildings. Also, precautions must be taken to avoid injuries and pollution in the process.

In addition, the State Council encouraged relocated enterprises to conduct mergers and reorganization and weed out outdated capacity.

According to the circular, the government will enhance financial support, expand fundraising channels and roll out land policies on the relocation project.