The Ministry of Commerce recently issued a public notice that the silica sand was included in the fourth batch of goods banned from the export catalogue, and the announcement will be implemented on May 1, 2006. As this information was not obtained in advance, many companies were caught off guard and a large number of foreign-related contracts could not be implemented. The silicon chemical industry that just started was facing “shockâ€.
It is understood that Fujian and Guangdong are the major producers of silica sand in China, and Fujian’s exports account for 65% of the country’s total. Silica sand is currently one of the major products of silicon chemical companies. Due to the late start of the development of domestic silicon chemical companies, the processing capacity of silica sand is small, and there are few downstream products. It is necessary to rely on the export part of silica sand to feed the enterprise. The sudden introduction of a ban on export policies has hit companies hard. If you stop the export of siliceous sand, these companies are no different from the bottom-line salary, so that the development of the domestic silicon chemical industry into trouble. Industry insiders estimate that Fujian alone will lose 30 billion yuan.
On the morning of April 13, the boss of a large-scale silica sand company in Fujian told reporters very anxiously that the ban on export announcements was a blow to the company. The company’s supply contracts with companies in South Korea, Japan, and Taiwan were breached due to embargoes, and the three large silica sand export port service areas and transportation equipment and personnel would also be suspended or closed down. The medium-term supply contract contracted between the company and a company in Busan, South Korea, will also be suspended. The South Korean company has not implemented production sand next month. The South Korean side has urgently sent a telegram to the relevant departments and sent people to negotiate with China. Taiwanese companies are old users of old silica sand in Fujian. They have been impetious and have been impetuosed by corporate executives. They are said to be reporting to the Ministry of Commerce and related departments. Another executive company in Fuzhou, a joint venture with foreign companies that produces silica sand, also complained: This news is too sudden for us. Once implemented, foreign companies that mainly deal in Fujian's silica sands will go bankrupt. Then they owed us nearly 5 million. The dollar amount will not be recovered and our company will close down.
According to analysis by industry insiders, the country's decision to stop the export of silica sand is undoubtedly to protect its own resources. However, most of the silicon chemical companies started relatively late and started earning “the first pot of gold†by exporting silica sand. Suddenly calling for an export stop will not only adversely affect foreign customers and customers in Hong Kong, Macao and Taiwan, but will also stop the development of fragile silicon chemical industry. It is hoped that relevant departments will directly communicate with enterprises and help enterprises to get out of the predicament as soon as possible.
It is understood that Fujian and Guangdong are the major producers of silica sand in China, and Fujian’s exports account for 65% of the country’s total. Silica sand is currently one of the major products of silicon chemical companies. Due to the late start of the development of domestic silicon chemical companies, the processing capacity of silica sand is small, and there are few downstream products. It is necessary to rely on the export part of silica sand to feed the enterprise. The sudden introduction of a ban on export policies has hit companies hard. If you stop the export of siliceous sand, these companies are no different from the bottom-line salary, so that the development of the domestic silicon chemical industry into trouble. Industry insiders estimate that Fujian alone will lose 30 billion yuan.
On the morning of April 13, the boss of a large-scale silica sand company in Fujian told reporters very anxiously that the ban on export announcements was a blow to the company. The company’s supply contracts with companies in South Korea, Japan, and Taiwan were breached due to embargoes, and the three large silica sand export port service areas and transportation equipment and personnel would also be suspended or closed down. The medium-term supply contract contracted between the company and a company in Busan, South Korea, will also be suspended. The South Korean company has not implemented production sand next month. The South Korean side has urgently sent a telegram to the relevant departments and sent people to negotiate with China. Taiwanese companies are old users of old silica sand in Fujian. They have been impetious and have been impetuosed by corporate executives. They are said to be reporting to the Ministry of Commerce and related departments. Another executive company in Fuzhou, a joint venture with foreign companies that produces silica sand, also complained: This news is too sudden for us. Once implemented, foreign companies that mainly deal in Fujian's silica sands will go bankrupt. Then they owed us nearly 5 million. The dollar amount will not be recovered and our company will close down.
According to analysis by industry insiders, the country's decision to stop the export of silica sand is undoubtedly to protect its own resources. However, most of the silicon chemical companies started relatively late and started earning “the first pot of gold†by exporting silica sand. Suddenly calling for an export stop will not only adversely affect foreign customers and customers in Hong Kong, Macao and Taiwan, but will also stop the development of fragile silicon chemical industry. It is hoped that relevant departments will directly communicate with enterprises and help enterprises to get out of the predicament as soon as possible.
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