Tianjin Blast at Chemical Warehouse - Impact to the Chemical Industry

There were at least two of really sad news happened in the chemical industry these few weeks, Tianjin blast at chemical warehouse on 12th August and today 1st September news about “Blast Seen in Chemical Industry Zone in Shandong”. 

Both of which are likely to play a significant part in the further development and scrutiny of industry practices not only in China but also globally. These terrible tragedies have sparked a lot of comment and debate globally, not to mention the angry Chinese, who is questioning the authority on answers & protection assurance. China remains the most important growth market for most of the global chemical companies and potentially could account for > 60% of global demand growth. It is a country that already is the world’s biggest chemical market. There will still some time to go before we can see the impact of those “wake-up” calls that exert tremendous pressure on chemical industry in terms of safety, health & environment development along it value chain i.e. warehouse, production, transportation, waste disposal & etc. It is worth to anticipate & follow up on the implication and what shall the industry player do differently in response to these life-threatening cases? 

Mistrust by local population intensify

These days of China potential systemic corruption with priority for GDP growth might overdriven by the policy maker & holder, putting safety & environment at high risk. The situation might be worst when the government is trying to censor media or the internet for anyone to learn the truth of the disasters. Recent years, a lot of chemical projects have been withdrawn or on-hold due to local population protest. I anticipate that the number of planned projects will be going to be delayed, canceled or on-hold. Also, relocation of many chemical plants to industrial park will be another move. The warehouse containing dangerous chemical need to locate away from the main road, housing developments and office blocks.

While writing this post, I just received an email from one of the chemical players who have a factory in Tianjin decided to relocate the factory into a more mature chemical industrial park in Jiangsu.  

With the rapid urbanization and grow of the middle class, they will demand more actions from the industry & its management as well as politician, government to assume liability & responsibility in safety, environment & health protection. While mistrust intensifies and a slowdown in global economy possesses twice challenges especially international players who are weak in local contact & networking to mitigate the issue.  It is reported on the news Tianjin Blast Puts Spotlight on Chemical Industry. This is a time that industry player and government, safety institution or professional body to collaborate in bringing trust to the population as part of company strategy to grow.

Stringent rules & regulation on ESH aspect

It is reported that Behind Deadly Tianjin Blast, Shortcuts and Lax Rules is the one of the contributing cause to this blast. Chinese regulations require that these types of facilities be at least 1,000 meters from public buildings, residences and highways.  A recent media report indicates that it was located within 500 meters of an expressway and a large apartment complex. The Chinese government ordered a nationwide workplace safety checks after the Tianjin disaster.

China’s rapid industrialization has failed to enforce stringent safety standard. Immediate after the incident, Greenpeace said it had identified warehouses for hazardous chemicals at four other major port cities: Shanghai, Guangzhou, Ningbo and Qingdao. All are close to residential areas. The Times has found several other facilities across China that produce or store sodium cyanide and other hazardous chemicals and appear to violate safe-distance regulations, putting nearby residents at risk of toxic exposure.

The root of inadequate monitoring and enforcement capacity are compounded by the lack of database and information from the industry player and public and exacerbated by uneven development across the regions.

In order to design an effective policies to reduce the safety, health impacts and environmental degradation, the only way is through collaboration of resources from the industry players & government in terms of human capital expertise, money, and energy, time allocation and sharing. Industry players need to take an initiative to allocate resources in self-dependent process driven safety lead-lag score card and build into the business model & daily operation. 

High time Collaboration of Chemical Industry Players & Government

Together, these two moves have the potential to advance significantly the growing relevance of ESH as a business tool to protect human life and the environment in China.

While the present industry players are more in “wait & see” attitude, waiting for order from China government before act. I am here hope to urge those business leader in the chemical industry to act boldly as informed business decision to heighten the standard of safety/ environment preventive & corrective actions.

There are so many critical activities one company can do, for instance regular safety inspection & audit, monthly safety committee meeting, review company-wide safety standard and regulations, safety awareness training, job safety analysis, chemical storage assessment, MSDS, firefighting & first aid facility & team enhancement and etc. Talk to your safety officer or expertise, they can help you to formulate the solid ESH management system. Further reinforce the importance of businesses by paying attention to the ESH as part of the critical department/ functions will ensure sustained business in long run.

Disaster like this might just end up changing everything how we used to conduct the chemical business whether you know it or not, believe it or not, see it or not!

“Better a thousand times careful than once dead and it takes leadership to improve safety!”

I would be interested to hear your insights in the comment below.

__________________________________________________

Darrell Tan is currently attached with corporate profession in Business Development & Strategic Planning. He is also a Certified Professional Trainer (CPT) by Malaysian Institute of Management (MIM), Certified Train the Trainer registered with Malaysia Human Resources Ministry, Certified Business Analyst. He is believing & inspired by “Anyone shall be given a chance to learn hence transform learning into long-lasting growth!” 

He is passionate in organizational development (OD) & business transformation activities. 

Welcome you to connect & networking with the author,

LinkedIn,  https://id.linkedin.com/in/darrelltanboonlai
Blog, https://aboutlearningcurve.wordpress.com
Twitter @alccurve