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The government promised that the price of electric power was not fulfilled yet

As the government's commitments have not been fulfilled and electricity prices remain high, more than two-thirds of calcium carbide facilities in Shanxi Province have ceased operations. Many are operating at half capacity, with some facing potential shutdowns. This has created a critical situation for the industry, as companies are now urgently calling on the government to honor its promises. On April 19, the Shanxi Provincial Calcium Carbide Industry Association submitted an emergency report to Governor Yu Yujun, requesting immediate attention and action. The association called on the provincial government to fulfill several key commitments. First, it urged the suspension of three fees—water resources compensation fee, power base construction fund, and utility for urban public utilities—that were originally promised by the government in 1997 but have continued to be charged even after being suspended until 2005. Second, the government was asked to support enterprises that align with national industrial policies, particularly by addressing the issue of electricity pricing. According to the "Shanxi Province Power Network Sales Price List," the large industrial electricity price for 35–110 kV is 0.316 yuan per kWh, while the calcium carbide-specific rate is 0.293 yuan per kWh. However, in practice, only older furnaces built before the 1980s are still using the lower rate. All newer facilities are being charged the higher industrial rate. This has sparked strong reactions from producers, who argue that outdated regulations are no longer suitable for current conditions. They also pointed out that other provinces do not impose such discriminatory pricing, and that electricity should be priced according to the product being produced. Additionally, the industry is urging the government to implement peak-to-valley electricity pricing, which would benefit both production efficiency and grid stability. Finally, the association requested further enforcement of the "Access Conditions for the Calcium Carbide Industry" and related national policies, including the closure of non-compliant facilities and outdated furnaces. Shanxi is one of the country’s leading producers of calcium carbide, accounting for about 25% of national output. The industry contributes 12% of the province’s total chemical output value. By the end of 2005, there were 71 calcium carbide-producing enterprises in the province, with a combined capacity of 2.5 million tons and an actual production of 1.04 million tons. If the entire industry were to shut down, it would severely impact the implementation of the national "Eleventh Five-Year Plan" for calcium carbide and acetylene chemical industries, as well as other coal-based sectors. This could lead to significant disruptions in related fields such as electricity, construction materials, and chemicals.

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