Dukang Distillers warns of 60-70% production cuts over China's air pollution season

SINGAPORE (Nov 23): Dukang Distillers warns that production of its baijiu will decrease significantly by 60-70% over the next two quarters until after 3Q18 ending March.

The drop is due to the enforcement of environmental laws and regulations in the winter-heating season by Ruyang Environmental Protection Bureau, which on Nov 16 issued targeted orders to various industries, including Dukang, to restrict production and cut emissions of industrial pollutants.

In a Thursday filing, the group recalled how the bureau on Nov 9 posted a notice issued by the Ruyang County People’s Government to warn of “continuing, severe and intensified air pollution and smog caused by coal burning for fuel and heating” due to the onset of the winter-heating season.

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