Chinese province orders textile and dyeing firms to temporarily halt operations

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.