Huzhou Financial Institutions Support Lead-Acid Battery Producer Treatment

SHANGHAI, Jul. 1 (SMM) – On June 30th, the Zhejiang Province Environmental Protection Bureau revealed that the Huzhou City Finance Office, Huzhou People’s Bank of China and the Banking Regulatory Commission jointly formulated Suggestions about Financial Support to Lead-Acid Battery Producer Treatment (hereinafter referred to as the Suggestions). The Suggestions require capital input for the treatment should be discriminatory.

Specifically, the Suggestions include the following items:
1. For companies and projects meeting relevant standards, Huzhou government will simplify the procedures of loans, and give credit support on environmental protection and technical renovation.

2. For companies to relocate, Huzhou government will recheck the companies’ credit before giving the loans.

3. If a company is going to switch to other production or be acquired, it should endeavor from higher authorities for loans for new companies or projects based on mortgage.

4. For companies or projects cannot meet relevant standards, Huzhou government will not only forbid any kind of new loans, but also accelerate the pace of recovering previous loans.

As China lists the lead-acid lead battery and secondary industries as focus of the treatment, many banks raised their threshold for this industry and have stricter requirements for loans. Many lead-acid battery producers and secondary lead smelters expressed difficulties in loan. A person in charge of a large domestic secondary lead smelter revealed that even large-sized regular lead companies are hard to receive the loans as banks are doubting whether or not they will be closed. 

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