Managing Hazardous Waste and Environmental Risks: An Interview with West Bridge Curium

The following is an interview with Ms. Airun, China Country Manager at West Bridge Curium, specifically focusing on hazardous chemicals.

West Bridge Curium (WBC) is a joint venture between Curium France (https://curium.world/en/) and West Bridge, established in 2023 to serve the China and Asia-Pacific markets. Curium has been active in European market since 1994 and decided to expand into the Chinese market in 2018.

WBC are experts in management of critical environmental risks, including chemical, radiological and mixed risks. It provides customised, turnkey solutions, as technical studies and project management, for specific client needs, covering a wide range of industries and includes handling dangerous situations, hazardous products (like chemicals), and hazardous wastes. Clients include not only private companies, but also governmental structures such as ADEME (state-managed orphan industrial sites), ANDRA (National Agency for Radioactive Waste Management), and the Académie de Créteil (remediation of the former Marie Curie laboratory).

Specific services provided include:

• Engineering & consulting, such as technical expertise (technical, compliance studies, risk assessment, environmental due diligence), contamination diagnosis, project management assistance (legal, administrative, technical support; works supervision), as well as laboratory and pilot zone for complex precision analyses and experimental studies.
• Works on site, such as decontamination of materials, surfaces and equipment, dismantling / depollution / remediation, hazardous substances /waste management, and management of production change/shutdown involving hazardous products

What are the advantages of EU companies in China’s hazardous chemicals sector? How can they best support the market?

EU companies possess several significant advantages in the Chinese hazardous chemicals market, especially in the recycling segment. They can adopt a number of ways to best support this market and leverage their strengths.

• Advanced technology and expertise: EU companies usually have advanced hazardous chemical handling and recycling technologies, as well as rigorous safety management experience. These technologies and knowledge are critical to improving overall safety standards and recycling efficiency in the Chinese market.
• Environmental standards and compliance: EU regulations on environmental protection and chemical management, such as REACH regulations, are notoriously strict. By complying with such high standards, EU companies can promote environmentally friendly practices in China, helping to improve compliance and sustainability in local industries. Basically all provinces in China are investing enormous efforts into upgrading the safety risk level of chemical industrial parks.
• Circular economy model: EU companies are familiar with the concept of circular economy and can promote innovative solutions for the conversion of waste to resources and the recycling and reuse of hazardous chemicals. This is in line with China’s goal of transitioning to a green and low-carbon economy.
• International cooperation and market access: Extensive international networks and experience in penetrating international markets, enable EU companies to introduce international best practices, while at the same time developing international markets for Chinese recycled products.
• Policy participation and influence: EU companies often have experience working with governments and are able to participate in the policy development processes at the international level. This may support and benefit the standardisation and internationalisation of China’s hazardous chemicals recycling market.

What are the main challenges faced by EU companies to enter China’s hazardous chemical market?

EU companies seeking to enter China’s hazardous chemical market face several significant challenges. One major obstacle is the closed-loop structure of the hazardous chemical recycling industry, which involves tight coordination between production units, local government bodies, and the final hazardous waste disposal process. This makes it difficult for new entrants to penetrate the established network. Cultural differences also pose a challenge, as building business relationships in China often requires establishing trust first, emphasising the importance of effective communication and relationship-building. Additionally, the geopolitical landscape adds complexity, with standards varying not only between provinces but also within different chemical industrial parks.

Data security is another concern, as sharing sensitive information is restricted by strict confidentiality laws and retroactive liability regulations, creating further barriers to collaboration and innovation.[1] EU companies must also ensure that their clients’ industries are not in sensitive national sectors, which could limit market access and impact their activities. Intense market and price competition is another factor, along with the rapid pace of technological advancements and market shifts in China, which might make it challenging for foreign firms to keep up.

What is your advice to EU companies, especially SMEs, that want to enter China’s hazardous chemicals sector?

Where there are challenges, there are opportunities as well. There is no “best” way, rather effective ways which are appropriate to each individual case.

Creating a joint venture with a local partner that has good connections in the field could result in a quick development of the market. For machinery and equipment manufacturers, local production could also be an effective option to significantly reduce the price and thus be more competitive in the market; this will also potentially allow other opportunities in the wider Asia-Pacific region thanks to developed infrastructure and numerous free trade agreements in place between China and countries in the region. In such cases, however, a solid intellectual property (IP) protection strategy is required.[2]

EU SMEs may also consider to partner up with local third party company and become their technical solution provider by area. Training activities with target clients have proved effective in improving their awareness of products and services. For EU SMEs already active on other international markets, their international partners might represent a gateway to the Chinese market, especially if they have active operations or even subsidiaries in the country.

Finding the right partner is very important. Industrial associations and even industry and scientific conferences often act as multipliers to reach out to a vast audience. Among these, EU SMEs involved in the hazardous chemicals sectors should consider Chinese chemical parks. In order to improve the level of environmental management and safe production, and promote industrial agglomeration and resource sharing, China has built a large number of chemical parks, among which Shandong, Jiangsu, Zhejiang, Guangdong and other provinces have a large number of chemical parks. Among these, Jiangsu is a major province of chemical industry. At present, there are 136 national-level and provincial-level development zones in the province, of which more than 20 are chemical parks. Jiangsu province ranks first in the number of chemical enterprises in the country, with more than 4,500 chemical enterprises above designated scale, of which more than 2,500 are hazardous chemical production enterprises. Of the 60 key counties (cities and districts) for the safe production of hazardous chemicals identified by the Safety Committee of The State Council, 11 are located in Jiangsu.[3]

The following table provides a summary of the distribution and main features of major chemical parks in China.

Overview of chemical parks in China

The table below gives an overview of the main types of chemical parts in the country.[4]

The main advantages of chemical parks are:

• Close to resources. Many chemical plants are located close to the source of raw materials. For instance, petrochemical plants are often located near oil fields or large ports to facilitate the import of crude oil, such as Daqing, Lanzhou, Shanghai, Qingdao, Dalian, Tianjin and other places. Coal chemical plants are mostly located in regions rich in coal resources, such as Shanxi, Shaanxi, Inner Mongolia and other provinces. The sulfuric acid industry tends to be near places rich in pyrite resources, such as Yunfu in Guangdong Province.
• Close to consumers. In order to reduce transportation costs, such as fine chemicals and plastic products, chemical parks tend to be set up around densely populated and economically developed cities, such as Beijing, Shanghai, Nanjing, Guangzhou, etc.
• Coastal and riverside areas. Taking advantage of advanced sea and inland waterway transportation infrastructure, many large chemical bases are located in coastal and riverside cities, such as Shanghai, Ningbo, Nanjing, Tianjin, Qingdao, Guangzhou, Dalian, etc. This facilitates the importation and exportation of raw materials and products.
• Specific chemical industry clusters. Due to historical reasons and policy orientation, certain types of chemical industry clusters have been formed in some regions, such as the refinery cluster in Dongying, Shandong Province, the petrochemical base in Daya Bay, Guangdong Province, and the fertiliser industry in Nanjing, Quzhou, Shijiazhuang and other places.
• Policy guidance and planning of less developed provinces. China is attaching great importance to the development of the chemical industry in less developed regions, including Sichuan and Xinjiang under the Western Development strategy, as well as Liaoning and Jilin under the Revitalisation of Northeastern China strategy.

These distribution characteristics reflect the historical track of the development of China’s chemical industry, resource endowment, market demand and government policy guidance. With the development of the economy, China’s strategy to peak carbon emissions and achieve carbon neutrality by 2030 and 2060, respectively, and the consequent improvement of environmental protection requirements, the distribution and structure of chemical plants will be constantly adjusted and optimised.

By leveraging the resources and networks available in these chemical parks, EU SMEs can better navigate the complexities of China’s hazardous chemicals market and capitalise on growth opportunities.

[1] For an overview of China’s regulatory framework for cybersecurity and cross-border data transfers, see a report of the EU SME Centre: https://www.eusmecentre.org.cn/publications/cybersecurity-data-and-personal-information-compliance-for-eu-smes-in-china-2/.

[2] EU SMEs are strongly recommended to engage with the China IP SME Helpdesk, another EU-funded project that provides free of charge, tailored technical assistance on IP issues in China. See: https://intellectual-property-helpdesk.ec.europa.eu/regional-helpdesks/china-ip-sme-helpdesk_en.

[3] https://www.mem.gov.cn/awhsy_3512/awhbgswj/201403/t20140303_247358.shtml (accessed: 10 Sep 2024). For a closer analysis of the parks specifically within Jiangsu, and their geographical distribution, see this article written by the private company Sino-Agri Leading Biosciences Co. Ltd.

[4] Source: China Energy News, see: https://baijiahao.baidu.com/s?id=1672186206472564710 (accessed: 17 Sep 2024).