The Dalian city government has dismissed a report saying the city has revoked a decision made months ago to relocate a chemical plant over toxic leak fears.
"It is a rumor. We never halted the plan. All the preparation work for the relocation in terms of assessment and negotiation is advancing smoothly," a staff member surnamed Li from the Dalian
City Committee of the Communist Party of China's (CPC) publicity department said Thursday.
"We are investigating where the rumor comes from," Li added. When asked about the timetable for the relocation, Li said no information was yet available.
City authorities pledged to shut down and relocate Fujia Chemical Plant following a massive protest in August after large waves whipped up by a tropical storm breached a dike near the plant on August 8.
Quoting insiders, the Beijing-based Economic Observer reported on its website Thursday morning that the Dalian government had sent around an internal memo stating that the plant has resumed production.
The report was soon picked up by many websites, but most deleted the article later.
"It's not a rumor. I've just returned from a spot investigation to the city. An official close to the matter revealed the information to me. I also found that the plant had actually resumed
production earlier," Jia Huajie, the Economic Observer reporter who wrote the story, told the Global Times Thursday.
"The local authority is reluctant to relocate the plant, which has a license and approval.
Relocation means a breach of the existing contract and the government will have to spend millions of yuan in compensation," Jia said.
Jia's allegation could not be verified by press time. Calls to the chemical plant went unanswered Thursday.
According to Fujia, its plant produces paraxylene (PX), a carcinogenic petrochemical used to create raw materials for the production of polyester film and fabrics.
With an area of 800,000 square meters and total investment of 9.5 billion yuan ($1.5 billion), it started production in November 2008. Its annual output value reached 26 billion yuan and it contributes about 2 billion yuan in local tax revenues.
The dike breach prompted local residents to demand that the plant be relocated out of the coastal city, although no leaks have been reported.
"If it is not relocated as the government promised, the authorities' credibility must be questioned," Wang Jun, an online community manager in the city, told the Global Times.
"Don't try to fool us. The public will not surrender when health and homes are threatened. I hope the government thinks twice before taking action," another resident said on condition of anonymity.
In a similar case in Xiamen, Fujian Province, a Taiwanese-funded PX plant was eventually moved out of the city in 2007 after pressure brought about by demonstrating local residents.