European Union Chamber of Commerce in China

Petrochemical, Chemicals and Refining and Environment Working Groups

The Tianjiayi Explosion: Aftermath and Future of Chinese Environmental Regulation

Date and Time: 9:00-10:40 am, Wednesday 17 April, 2019

Venue: Shanghai Office: Unit 2204, Shui On Plaza, 333 Middle Huaihai Road, Huangpu District

               Beijing Office: Beijing Lufthansa Centre, Office C411A, 50 Liangmaqiao Road, Chaoyang District

Please register here for Beijing attendees or here for Shanghai attendees

The European Chamber would like to invite you to the next joint meeting of the PCR and Environment groups on Wednesday, 17 April, 9:00-10:40 am at the European Chamber Shanghai office. Members in Beijing will join this meeting via videoconference.

The explosion at the Tianjiayi plant in Yangcheng country, Jiangsu province on 21 March killed 78 people and injured more than 600. Many have criticized poor safety management as main cause for unnecessary tragedies like these. In the aftermath, how will chemical companies operating in China be affected?

The regulatory response has been swift.  After initial actions in the Chemical Park itself and Jiangsu province, China’s State Council Security Committee issued an “Urgent Notice Launching Risk Assessments for All Chemical Industrial Parks Across the Country”. So far Sichuan and Shandong provinces have responded.

Shandong, for instance, issued the “Urgent Notice on Launching Investigation and Rectification of Potential Safety Risks of Hazardous Chemical Enterprises in Shandong Province”. As a result, 762 inspection teams were sent to inspect 4,050 enterprises, 22,504 issues and potential risks were found, 7,796 of 22,504 issues and potential risks were rectified immediately, 113 enterprises were subject to punishment, 121 enterprises were requested to suspend production for rectification, 3,711 enterprises reported the status of self-inspection and self-rectification on safety risks to the Emergency & Security Supervision Department at the county level.

The blast has had a significant economic impact as well. The aftermath is creating ripples in the chemical market, for example a sharp price increase on dyes and raw materials, polymeric MDI, polyurethane TPU, M-phenylenediamine, resorcinol, liquid chlorine. There have been fluctuations in the prices of resins, adhesives and pesticides, which some enterprises have even stopped quoting, and an anticipated rise of the price of PVA powder products.

What many companies don’t know is that China recently has digitised environmental information, allowing companies to check online which of their suppliers have safety issues that may lead to production suspension and to proactively verify which suppliers are ready to respond when inspectors knock on the door.

Mr. Johnny Browaeys, Director of International Business at Greenment Environment and Vice-chair of the Environment Working Group, will illustrate the impact of the explosion on chemical companies and China’s new age of online environmental enforcement. Mr. Peter Corne, Managing Partner at Dorsey & Whitney LLP and Chair of the Environment Group, will explain how to handle inspections in the wake of regulatory crackdowns.

Tentative Agenda:

08:30-09:00              Registration

09:00-09:10              Welcome remarks

09:10-09:30              Presentation from Mr Johnny Browaeys

09:30-09:50              Presentation from Mr. Peter Corne

10:00-10:30              Q&A Session

10:30-10:40              Closing Remarks

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For more information about the PCR and Environment Working Groups or the European Chamber in general, please contact Ms. Rachel Rapaport at rrapaport@europeanchamber.com.cn

Speakers

Mr. Johnny Browaeys

Partner and Director, International Operations at GREENMENT Environment

Mr. Johnny Browaeys

Partner and Director, International Operations at GREENMENT Environment

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Mr Browaeys is a Belgian citizen who lives in China since 2003. He has 26 years of experience helping companies understand and mitigate environmental risks in China and beyond. He works at GREENMENT, the largest private-owned, Chinese EHS consulting firm in China. Prior to GREENMENT, he worked for ERM, setting up the first environmental consultancy business in western China, for CH2M Hill setting up the Soil & Groundwater Remediation business, and for DuPont coaching Chinese business leaders in building an EHS performance culture.

Mr. Browaeys is former Board Member of the European Chamber where he co-authored the Western China Investment Guide and contributed to several Environmental Position Papers.

Mr. Peter Corne

Managing Partner, Dorsey & Whitney Shanghai Office

Mr. Peter Corne

Managing Partner, Dorsey & Whitney Shanghai Office

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Peter Corne is head of law firm Dorsey & Whitney’s Shanghai office and co-head of Dorsey’s Cleantech Business Group. He is a panelist in several Chinese arbitration and commercial mediation commissions. He conducted as presiding arbitrator the first arbitration between foreign companies in the Shanghai FTZ under SHIAC’s then revolutionary new rules and similarly as mediator conducted the first mediation in the FTZ between foreign companies in the FTZ Court. He is also Adjunct Professor at NYU Shanghai teaching International Mediation and Arbitration.

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