Dun Pai Fireworks Group 盾牌烟花公司 – Blog

Changsha Emergency Management Bureau  Hu Chunshan

Liuyang Fireworks “12·4” Major Accident had severe consequences,heavy losses,and profound lessons, which sounded alarm bells for all levels of supervision and the fireworks industry. The occurrence of this accident exposed many chaos in the production and operation of fireworks in our city, especially overcapacity, disordered markets, lack of management, weak supervision, lax enforcement of laws, the proliferation of molded products and the contradiction of safety and environmental protection. Need more attention. After the accident, the government attached great importance to making a series of instructions for accelerating industrial upgrading and transformation, improving the intrinsic safety of the industry, and promoting high-quality development,providing scientific guidance for the in-depth rectification, transformation and upgrading of the millennium traditional fireworks industry. In response to these problems, the Bureau went deep into the fireworks industry enterprises in the city, conducted extensive investigations, listened to the opinions of all parties, and formed a preliminary investigation report.

1. Historical origin and basic situation

1). Long history. The landform of Liuyang is mainly mountainous, hilly land (78%), which provides a natural protective barrier for the production of traditional fireworks with a high risk factor. Liuyang has a population of more than 1.5 million and has less arable land (12%). A large number of surplus rural laborers have met the development needs of this labor-intensive handicraft industry. Liuyang belongs to a humid climate with a mid-subtropical monsoon, with an average annual temperature of 17-19 degrees. It is extremely cold in winter, hot in summer, sufficient light, and moderate rainfall, which is in line with the climate required for the production of fireworks “no tide, no dryness, no freezing and no heat”. condition. In addition, the Chinese fir, bamboo, sulfur, red clay, saltpeter and other resources are abundant, providing good natural resource conditions for the production of fireworks. During the Ming and Qing Dynasties, Liuyang East, South, and West were engaged in the firework industry with more than 200,000 people, with an annual output of more than 140,000 boxes (200,000 per box). In the  the Qing Dynasty (in 1723), Liuyang firecrackers were listed as court tribute and entered the market in large quantities.In 1739, firecracker production entered commercial production, and Liuyang became the “center of Hunan firecracker manufacturing”. During the Tongzhi years, 80% of the households in Dayao, Jing gang, ChengtanJiang, Wenjia City, Yanghua were engaged in the production of fireworks. Box around. In the early years of the Republic of China, Liuyang firecrackers became a famous product in Hunan because of its “excellent manufacturing and reputation”. After more than 1300 years of development, Liuyang has formed an industrial cluster integrating production, operation, research and development, and logistics, and has become a world-famous fireworks production base and the world’s “hometown of fireworks”.

2). Outstanding brand. As a traditional Chinese handmade product, Liuyang firework production uses traditional manual techniques, using soil paper, soil nitrate, sulfur, charcoal, red and white clay as processing raw materials, with 72 processes. After the founding of the People’s Republic of China, the government attached great importance to the traditional industry of fireworks, and set up research and management institutions such as the Fireworks Research Institute and the Fireworks Administration Bureau. The ancient traditional craftsmanship has developed from a simple and primitive handicraft workshop to a huge industrial cluster. In October 2002, Liuyang became the permanent seat of the International Fireworks Association Headquarters. In 2007, “Liuyang Fireworks” was officially recognized as a well-known trademark in China, ushering in a period of explosive growth. From 2010 to 2018, the total output value of Liuyang fireworks increased from 12.8 billion RMB to 25.92 billion RMB, with an average annual increase of 12.2%. The products are exported to more than 180 countries and regions on five continents, accounting for 50% of the domestic market and 70% of the international market. . In 2018, after advancing a round of rectification and exit, Changsha City still has 5,79 fireworks and firecracker production enterprises (549 in Liuyang and 30 in Ningxiang), accounting for 25% and 60% of the national and provincial production enterprises, respectively. At the same time, there are more than 600 supporting enterprises of raw and auxiliary materials for fireworks, with related industry income of 16.42 billion RMB. Throughout the industry chain, production and related industries provide about 350,000 jobs, and more than 10 billion RMB of workers’ wages are paid, contributing more than 4% to economic development of Changsha.

3). Complete variety. There are many types of fireworks in Liuyang. There are thirteen major categories according to the effects of fireworks: cake, fountains, spinners, helicopters, rockets, roman candles, atrial shell, smoke, toys, combination items, hand-hold sparkling devices, etc. In recent years, through continuous innovation, we have successfully developed and launched high-tech new products such as micro (no) smoke fireworks, day view fireworks, indoor and stage fireworks, which are safe, reliable and non-polluting. Dancing Fireworks recently developed a low-sulfur, debris-free, safe and environmentally-friendly firecracker, which can even be displayed indoors. Continuous technological innovation and variety innovation capabilities are among the highest in the world. The firework firing has also been changed from traditional manual ignition to remote ignition, and the firing program is fully computerized.

2.the main problems in the fireworks industry in Liuyang

(1) Excessive production capacity. First, the capacity of major production areas has generally increased. After the country determined in 2004 that the fireworks would be concentrated in the Hunan and Jiangxi, other provinces (except Guangxi, Guizhou, and Yunnan) withdrew from the production of fireworks. The total output value of the fireworks production increased from 12.8 billion yuan in 2010 to 25.92 billion yuan in 2018, and the production capacity doubled in less than 8 years. Comprehensive production capacity in other major production areas inside and outside the province such as Shangli, Wanzai, Hepu and Liling has also generally increased over the same period.Domestic market demand continues to shrink, fireworks have a nationwide overcapacity;Second, the level of mechanization has increased significantly. In recent years, with the development of the mechanization of the fireworks industry, the production efficiency of fireworks has increased by more than 5 times, resulting in excess capacity in the process;Third, the production capacity of fully automatic production lines has expanded dramatically. In recent years, with the promotion and use of the fully automated production line of combined fireworks, the production efficiency of a single category of combined fireworks and fireworks has increased geometrically, resulting in the overcapacity of combined fireworks being more prominent than the overall market demand of other varieties.

(2) The domestic market has shrunk sharply. In recent years, in addition to Beijing, Shanghai and other big cities banning fireworks, more and more cities have begun to ban firecrackers. In 2017, fireworks were banned in Tianjin. After that, many cities such as Changsha, Hefei, Jinan, Harbin and other cities issued “banning orders” in the form of legislation or government orders. There are currently 138 cities banned and 536 cities restricted in the country. With the continuous advancement of the blue sky defense war, the number of cities in China restricted from release is increasing, and the domestic market for fireworks and firecrackers has shrunk sharply. In 2018, fireworks and firecrackers sales in Beijing fell by 30.5% compared with last year, and the city’s total sales were 23000 cases, less than 4% of 600000 cases in 2009, a drop of 96.2%. This is the sixth consecutive year of decline since 2012. Other provinces are similar to Beijing. In 2018, Zhejiang province has fallen by 30%, Fujian province has fallen by 40%, Hebei province has fallen by 20%, Anhui province has fallen by 30%, Tianjin has fallen by 100%, and Shandong province, Sichuan province and Liaoning province have basically remained the same.

(3) Inadequate development of overseas markets. Unlike domestic fireworks restrictions, the United States, Germany, Russia, the United Kingdom, Japan, France and other countries, the demand of fireworks has been increasing. According to statistics, China’s major exporters of fireworks and firecrackers are 42% in the United States, 21% in Germany, 7% in Russia, 6% in the United Kingdom, and 5% in Japan. In 2018, as a large number of fireworks and firecrackers produced in China (mainly Liuyang) are now safe enough, in the United States, except Massachusetts, the remaining 49 states can legally sell professional fireworks and consumer fireworks. In 2018, the United States alone consumed more than 900 million US dollars of various firework products, and about 70% of the fireworks used in professional firework shows were made in China.

(4) The pattern of factories being scattered, small, and numerous has not been completely changed. First, there are many factories and production sites. As the main production area, the production of fireworks and firecrackers in Liuyang has undergone a workshop-to-factory transformation, and the number of factories has continued to decrease in the past 10 years. From 2016 to 2017, through policy phase-out, 362 factories and 82 industrial areas withdrew from the production field, and the number of factories decreased from 941 to 588. However, due to the large number of product types and specifications produced by the entire industry, it has objectively contributed to the existence of a large number of production units with small volume, large number, wide distribution, and effective demand. Therefore, during the ongoing “reorganization and upgrading” process, due to market demand, many small and medium-sized and micro factories would rather become the work areas of qualified factories (including branches and production lines), rather than withdraw from production. At present, there are still 800 production units including 549 factories and 251 production zones in Liuyang;Second, factory profits are low. In recent years, new investment in the whole industry has generally been relatively large. According to the “three-year rectification and replacement certificate” regulations, many factories and work zones must invest a lot of money in the rectification and upgrading of hardware for each rotation of safety production license. Almost all the money earned in the three-year production and operation cycle has been invested in rectification and reform. After several rounds of rectification and renewal, most factories are still operating at a loss. At the same time, due to the large number of factories, most products are homogeneous, some products are seriously overstocked. The product structure is contradictory, the competition is fierce, and the industry profits are thin;Third, production and operation activities are unstable. The seasonality of factory production is very strong, and is greatly affected by local policies, high temperatures, environmental protection and other factors. The frequency of temporary production suspension and temporary holidays is high, and the normal production and operation order is easily interrupted by humans. Workers are more mobile, working in free time and farming in busy time.

(5) The overall safety operation capability is low. Except for a few factories in Liuyang, most of the factories and their managers lack of management ability, which is manifested in the following: the main responsible person has a poor sense of responsibility for the safety subject. Managers engaged in fireworks and firecrackers are generally older (average age is about 50 years old), most of them are farmers, handicraft producers and small commodity operators, and have not received systematic education, learning and management training, culture Low quality, lack of safety awareness and safety knowledge.

(6) There is a huge risk of export concealment. Many export trading companies not only illegally place orders and ship illegally, but also smuggle fireworks products that are seriously overdose, out of scope, and extremely dangerous under the guise of export trade. The customs declaration deliberately conceals and disguise them as other general goods for export. It poses a great threat to transportation, and once an accident occurs, it will seriously damage or even destroy the entire industry. In recent years, the products of some export companies in Liuyang have been investigated in Shanghai and Ningbo ports, exposing the blind area of industry supervision.

(7) The quality of the raw materials is not high, which makes the accident prone. The firework and firecracker industry is a high-risk industry. Unlike the machinery manufacturing and food processing industries, the quality and sensitivity of raw materials are directly related to the safety of all aspects of production, distribution and sales. First, there are many raw material manufacturers, and the phenomenon of “small, scattered, and chaotic” has not been eliminated. There are more than 600 raw material production factories, producing more than 1,000 raw material varieties, scattered in 16 towns in Liuyang; the second is the lack of raw material industry standards and uneven quality. Fireworks and firecracker chemical raw materials do not have industry-specific standards, and most raw materials are produced without standards, resulting in a flood of fake and shoddy products. For example, magnesium and aluminum powder, the price of aluminum and magnesium powder produced by the national standard aluminum ingot is 24,000 yuan per ton, and the price of aluminum and magnesium powder produced by recycling waste metal such as cans is only 14,000, but the cheap magnesium and aluminum powder has complex components and impurities. High content can easily cause accidents in the production process and product quality. In order to save costs, some companies have arbitrarily purchased low-quality raw materials for fireworks production. In addition, the lack of product testing equipment and testing technical personnel of fireworks enterprises, a large number of low-quality raw materials are used in the production of fireworks products, posing a major safety hazard of product quality.

(8) Product quality specifications are not uniform and run counter to safety and environmental protection. First, non-degradable molded products brew systemic risks in the industry. In April 2012, the “new environmental protection moulded firework outer tube” was successfully developed in Liuyang, and then major companies followed suit. Molded firework products are formed by mechanically molding mineral materials at one time, reducing the 9 steps of the traditional process into 1 step, which greatly improves the production efficiency and promotes the development of mechanized production lines. However, the outer tube of this product uses waste paper, calcium sulfate, calcium carbonate, and stearic acid as raw materials. After the fireworks are fired, the solid waste does not have the recycling value of traditional paper outer tubes, which brings great pressure to the environment and sanitation. . This kind of product is difficult to degrade naturally (especially in the cold and water-absent North, the possibility of natural degradation is extremely small), runs counter to the national requirement of “garbage classification and reduction” . It has become a prohibited product in many provinces and cities (including traditional fireworks). However, many companies are spurred by fast production, low costs, and “earn fast money”. More and more followers have formed, leading to“bad currency to drive out good currency”, bring to great risk to the whole industry.

3.Some suggestions for rectification and change

(1) Smaller factories and work areas will be further eliminated, and factories that fail to meet the conditions for safe production will be retired by means of fund compensation, encouragement of transformation, and forced closure. Small and medium-sized factories with safe space for rectification and renovation, continuous market demand for products, environmental protection with development potential through technology upgrade, full guarantee of product quality and management capabilities, encourage high-quality factories to acquire, merge and reorganize and reduce the number of factories.

(2) Comprehensively rectify the “work area (branch companies) affiliation” problem of multiple permits to eliminate regulatory blind area; Eliminate subcontracting, comprehensively clean up and inspect all fireworks and firecracker manufacturers, and subcontract and illegal  behaviors such as renting workshops, leasing stations, and multi-shareholder branch production are strictly punished and rectified within a time limit. If no rectification is made within the time limit or re-offend after rectification, the license shall be revoked according to law. Suspected crimes shall be transferred to judicial organs.

(3) Improve the quality of raw materials. Establish a comprehensive law enforcement team, starting from the production, operation, and use of raw materials, strictly conducting random inspections, comprehensively checking and cleaning up high-risk materials with significant production safety risks, and severely investigating counterfeit and shoddy materials. Establish a “blacklist” system of raw materials, and promptly publish information on the investigation and punishment of inferior materials.

(4) Stop production measures should be implemented scientifically in accordance with the law. First, follow the basic laws of fireworks and firecrackers production activities, scientific norms and temporary suspension of production, because of the particularity of fireworks and firecrackers production technology, the national technical regulations stipulate that pyrotechnics should be used immediately and cannot be retained overnight. After the normal production process of the factories is interrupted by temporary shutdown, all kinds of powder and semi-finished products may cause fire and explosion due to electrostatic accumulation, external physics, chemical reactions and other factors, resulting in great safety risks. If it is really necessary to stop production in a special period of time and other factors, there should be a reasonable buffer period; The second is to prudently implement high-temperature shutdown, which should be scientifically classified according to different product processes in summer. Technological products such as toy fireworks, micro-powder fireworks ,indoor fireworks and other products can be produced in different periods in summer, so as to avoid new hidden dangers caused by rushing orders after high temperature resumption, and achieve balanced production throughout the year. Third, the suspension of production during the Spring Festival and other holidays should follow the voluntary principle of factories, and factories should produce according to the needs of orders (especially the time limit for export products), which is conducive to improving safety.