Textile, dyeing, and synthetic fiber companies in eastern China's manufacturing hub of Zhejiang have been ordered to temporarily halt operations to meet energy consumption targets. The order has affected nearly 160 energy-intensive companies, mainly the textile, dyeing, and chemical fiber industries.
The production order for September 21-30 impacted a considerable number of businesses, with 80% of those in the Ma'an area being affected. Local governments are being forced to reduce energy use as part of a national green transition strategy to prevent climate-changing greenhouse gas emissions.
A document was released in August by the National Development and Reform Commission stating that Zhejiang was among other provinces to have "second-level warning". The warning indicated that these provinces would have a difficult time meeting their energy consumption targets. Keqiao district, which overseas Ma'an area is China’s textile industry base. It alone accounts for about 30% of the national capacity.
By 2025, Beijing plans to reduce national energy consumption per unit of GDP by 13.5%, while cutting carbon emissions by 18%, compared to 2020. Specific reduction targets have also been set for local governments. Officials have advised businesses to minimize their power consumption and production.
A dyeing company executive in Keqiao, said that the suspension is rather long, and it will definitely affect business because order deliveries will be delayed. The provincial government of Zhejiang announced a five-year plan in May requiring high-energy-consuming businesses such as textiles, dyeing, and plastics to modernize their technology and increase company efficiency.
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