China's First SOE Closed Down for Pollution

The Shenyang Intermediate People 's Court Tuesday declared bankruptcy of Shenyang Smeltery, one of the leading pollutant makers in northeast China's Liaoning Province.

This is the first time that China shut down an ultra-large state-owned enterprise (SOE) on account of pollution.

The factory, which discharged 42 percent of sulfur dioxide in Shenyang, reduced its normal production in May. Its three funnels, which gushed hazardous gas all day long, ceased operation at the end of June.

Liu Shuying, a resident who lives near the factory for more than 20 years, said with pleasure, "We can breeze some fresh air from now on."

Set up in 1936, the Shenyang Smeltery was among China's top 500 SOEs in the 1980's. Its gold, silver, copper, lead and zinc production used to lead the country at that time.

Nevertheless, the factory discharged large quantities of waste residue, water and dust, which caused great harm to the health of local residents.

According to the local environmental protection department, the factory discharged into the air 74,000 tons of sulfur, dioxide and 66.8 tons of heavy metal each year, polluting 50 square kilometers of the city, making up one fourth of the total area of this major industrial in north China.

Deputies to the Shenyang City People's Congress, Liaoning Provincial People's Congress and National People's Congress time and again appealed for a solution to the pollution of the plant, and the issue finally aroused great concern of the central government.

As the factory runs at a loss and produces heavy pollution, the State Council, China's highest governing body, approved a decision to gradually reduce its production until its operation was finally suspended.

When the bankruptcy was announced at a mass rally this morning, an official of the Shenyang Intermediate People's Court also pronounced a proper arrangement for more than 10,000 workers serving the factory for decades.

Meng Fanguang, a 47-year-old worker, said, "The closure of the factory is a bad news for me and my colleagues, but it's great for most of the citizens in Shenyang."

Shenyang, once known as one of the top ten most polluted cities in the world several years ago, has attached great importance to the improvement of its environment in recent years. Last year, it was listed by the United Nations as a pilot city for sustainable development.



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