Paints & coatings: China's VOC regulations may lead to industry restructuring 23 June 2003 00:00 [Source: ACN]
Will China's new rules limiting emissions of volatile organic compounds (VOC) in paints and coatings bring about a major restructuring of the country's fragmented industry? A senior manager at an international paints and coatings company with facilities throughout China, John Ou, thinks it will. He says the new regulations may weed out the smaller local players, which are finding it tough to adhere to the lower VOC levels. Among the strict regulations that came into effect on 1 July 2002, an important one sets the limit of aromatics content at no more than 500 ppm (parts per million). The aromatics being limited include benzene, ethylbenzene, dimethylbenzene, toluene and mixed xylenes. Two mandatory state standards limiting the amount of the harmful substances in latex paint for walls and solvent-based polyurethane coatings for wood products were released towards end-2002. According to the State Administration for Quality Supervision, Inspection and Quarantine, violators of the VOC regulation can be fined, with repeat offenders jailed. But companies that meet the standards will be recommended for tax reliefs, ranging from 5% to 30% of total payable tax. More details of this scheme were not available. The new regulations represent an effort by the Chinese government to minimise the environmental hazards posed by the use of chemicals in paints and coatings on its vast population. They also reflect the government's desire to keep up with the most advanced economies in the world, which already have such regulations in place. With its accession to the World Trade Organization and hosting of the 2008 Olympics, China is even more anxious to measure up to the best in the world. A chemicals and materials analyst at Frost & Sullivan Asia-Pacific, Shruti Gupta, says that all new construction and interior decorations for the 2008 Olympic Games in Beijing will...
Please join StudyMode to read the full document