Shandong Shenghua New Materials Technology Co., Ltd. Environmental Protection Acceptance Public Notice upon Completion

On June 15, 2018, Shandong Shenghua New Materials Technology Co., Ltd. held the completion and environmental protection acceptance meeting for the "Electronic Materials Project (Phase II, Part 1)" (hereinafter referred to as "the Project") in Laiyang City. The project team included representatives from the project developer—Shandong Shenghua New Materials Technology Co., Ltd.—the environmental impact assessment agency—Shandong Xinda Environmental Protection Technology Consulting Co., Ltd.—the collaborating unit responsible for preparing the acceptance report—Yantai Shenghe Environmental Technology Co., Ltd.—as well as four expert members of the验收组 (list attached).

The main construction activities for the "Electronic Materials Project (Phase II)" include: - The establishment of production facilities for nine key products within the existing厂区: chlorinated salts ((methoxymethyl)triphenylphosphonium chloride), brominated salts (methyltriphenylphosphonium bromide), HPB (4-(trans-4-propyl-cyclohexyl)-bromobenzene), 2BF (4'-ethyl-3-fluoro-1,1'-biphenyl-5-boronic acid), PCO (4-(4-ethylcyclohexyl)-phenol), HHV (4-vinyl-4'-propyl-1,1'-bicyclohexane), hexafluoroendanhydride (4,4'-(hexafluoroisopropylidene)diphthalic anhydride), bisphenol AF (2,2-bis-(4-hydroxyphenyl)-hexafluoropropane), and PCMZ (N-phenyl-3-carbazoleboronic acid). - Upgrading the existing 300 t/a ethyl bromobenzene production unit. Specifically, the product line will be reconfigured from ethyl bromobenzene (300 t/a) to various alkyl bromobenzenes, including ethyl, propyl, butyl, and pentyl bromobenzenes—produced at 100 t/a, 100 t/a, 50 t/a, and 50 t/a, respectively—while maintaining the overall annual output unchanged. - After the project is operational, the annual production capacity will reach 160 t/a of chlorinated salts, 200 t/a of brominated salts, 100 t/a of ethyl bromobenzene, 100 t/a of propyl bromobenzene, 50 t/a of butyl bromobenzene, 50 t/a of pentyl bromobenzene, 30 t/a of HPB, 20 t/a of 2BF, 100 t/a of PCO, 10 t/a of HHV, 30 t/a of hexafluoroendanhydride, 10 t/a of bisphenol AF, and 25 t/a of PCMZ—totaling 885 t/a across these 13 products.- Additionally, the existing wastewater treatment plant will undergo a comprehensive upgrade, featuring enhancements to the wastewater treatment processes. A new odor-collection and treatment system will also be installed at the wastewater station to address unpleasant odors. - Finally, a new 4 t/h gas-fired steam boiler will be constructed to provide temporary heating support ahead of the implementation of centralized heating systems.   The environmental protection acceptance results are hereby announced. If you have any comments, please submit them by 2018. 7 Month 9 Proposed before the day.

    1. Project Name: Shandong Shenghua New Materials Technology Co., Ltd. Electronic Materials Project (Phase II)

2. Construction Location: No. 77 Changjiang Road, Laiyang Economic Development Zone

3. Construction Unit: Shandong Shenghua New Materials Technology Co., Ltd.

Project Overview:

Laiyang Shenghua Technology Co., Ltd. was registered in 2003 and is located in the Chemical Industry Park of Laiyang Economic Development Zone, Shandong Province, occupying an area of 43,639 square meters east of Changjiang Road and south of Xiangshan Road. ² Primarily engaged in the production and sales of specialty chemicals, including optoelectronic raw materials. On March 4, 2016, the company’s name was changed from "Laiyang Shenghua Technology Co., Ltd." to "Shandong Shenghua New Materials Technology Co., Ltd." The company’s “Electronic Materials Project (Phase I)” received approval for its Environmental Impact Assessment Report from the Yantai Municipal Environmental Protection Bureau in September 2015 (Yan Huan Shen [2015] No. 58) and successfully passed the acceptance inspection by the Yantai Municipal Environmental Protection Bureau in March 2016.

The construction site for the Phase II project is located within the existing premises of Shandong Shenghua New Materials Technology Co., Ltd. in the Chemical Industry Park of Laiyang Economic Development Zone, specifically at approximately 36°57′36″ North latitude and 120°37′44″ East longitude.

The total project investment is 40 million yuan, with 8 million yuan allocated to environmental protection.

   Public notice period: June 19, 2018 – July 9, 2018 (Notice period: 20 working days)

During the public notice period, if you have any objections to the above-mentioned content, please submit your feedback in writing. Individuals must include their real names, while organizations must affix their official seal.

Contact:   Wang Haiyun   Contact information: 1 8562275680

Mailing Address: Laiyang City Economic Development Zone, Changjiang Road Number 77

5. Preparing entity: Yantai Jieda Environmental Technology Co., Ltd.

6. Contact: Liu Yanqing , Contact number: 13031613049

7. Attached Acceptance Comments

Shandong Shenghua New Materials Technology Co., Ltd.

Electronic Materials Project (Phase II) (Part 1)

Completion Environmental Protection Acceptance Opinion

On June 15, 2018, Shandong Shenghua New Materials Technology Co., Ltd. held the completion and environmental protection acceptance meeting for the "Electronic Materials Project (Phase II, Part 1)" (hereinafter referred to as "the Project") in Laiyang City. The project team included representatives from the project developer—Shandong Shenghua New Materials Technology Co., Ltd.—the environmental impact assessment agency—Shandong Xinda Environmental Protection Technology Consulting Co., Ltd.—the collaborating unit responsible for preparing the acceptance report—Yantai Shenghe Environmental Technology Co., Ltd.—as well as four expert members of the验收组 (list attached).

The acceptance team conducted an on-site inspection of the project's operational status, listened to reports on the implementation of environmental protection measures and the completion-stage environmental protection acceptance monitoring results, and reviewed the relevant documentation. After careful deliberation, the following acceptance opinion was reached:

I. Basic Information on the Project Construction

(1) Construction Site, Scale, and Main Construction Activities

Shandong Shenghua New Materials Technology Co., Ltd. was established in June 2003 and is located at No. 77 Changjiang Road, Economic Development Zone, Laiyang City. The company is a high-tech enterprise specializing in the R&D, production, and sales of liquid crystal materials, OLED materials, and pharmaceutical intermediates. The company covers a total area of 43,639 square meters. ² Currently, the workforce consists of 156 employees working in a three-shift system, with each shift lasting 8 hours. They operate 300 days per year, totaling 7,200 hours annually.

The main construction activities for the "Electronic Materials Project (Phase II)" include: - The establishment of production facilities for nine key products within the existing厂区: chlorinated salts ((methoxymethyl)triphenylphosphonium chloride), brominated salts (methyltriphenylphosphonium bromide), HPB (4-(trans-4-propyl-cyclohexyl)-bromobenzene), 2BF (4'-ethyl-3-fluoro-1,1'-biphenyl-5-boronic acid), PCO (4-(4-ethylcyclohexyl)-phenol), HHV (4-vinyl-4'-propyl-1,1'-bicyclohexane), hexafluoroendanhydride (4,4'-(hexafluoroisopropylidene)diphthalic anhydride), bisphenol AF (2,2-bis-(4-hydroxyphenyl)-hexafluoropropane), and PCMZ (N-phenyl-3-carbazoleboronic acid). - Upgrading the existing 300 t/a ethyl bromobenzene production unit. Specifically, the product line will be reconfigured from ethyl bromobenzene (300 t/a) to various alkyl bromobenzenes, including ethyl, propyl, butyl, and pentyl bromobenzenes—produced at 100 t/a, 100 t/a, 50 t/a, and 50 t/a, respectively—while maintaining the overall annual output unchanged. - After the project is operational, the annual production capacity will reach 160 t/a of chlorinated salts, 200 t/a of brominated salts, 100 t/a of ethyl bromobenzene, 100 t/a of propyl bromobenzene, 50 t/a of butyl bromobenzene, 50 t/a of pentyl bromobenzene, 30 t/a of HPB, 20 t/a of 2BF, 100 t/a of PCO, 10 t/a of HHV, 30 t/a of hexafluoroendanhydride, 10 t/a of bisphenol AF, and 25 t/a of PCMZ—totaling 885 t/a across these 13 products. - Additionally, the existing wastewater treatment plant will undergo a comprehensive upgrade, with improvements to the wastewater treatment processes. A new odor-collection and treatment system will also be installed at the wastewater station to address unpleasant odors. - Finally, a new 4 t/h gas-fired steam boiler will be constructed to provide temporary heating support prior to the implementation of centralized heating systems.

Since the 30 t/a hexafluoroanhydride and 10 t/a bisphenol AF production lines have not yet been completed and thus do not meet the acceptance criteria, this round of environmental protection acceptance will only cover the completed facilities for other products under the "Electronic Materials Project (Phase II)," as well as the upgraded wastewater treatment station and the gas-fired boiler system along with its auxiliary equipment.

(II) Construction Process and Environmental Approval Status

Shandong Shenghua New Materials Technology Co., Ltd. commissioned Shandong Xinda Environmental Protection Technology Consulting Co., Ltd. in January 2017 to prepare the "Environmental Impact Assessment Report for the Second Phase of Shandong Shenghua New Materials Technology Co., Ltd.'s Electronic Materials Project." On February 19, 2017, the Yantai Municipal Environmental Protection Bureau approved the project's Environmental Impact Assessment Report with Document No. Yan Huan Shen [2017]16. It’s important to note that this project is a renovation and expansion initiative, and construction began before official approval was granted.

Entrusted by Shandong Shenghua New Materials Technology Co., Ltd., Yantai Shenghe Environmental Protection Technology Co., Ltd., Yantai Tongji Testing Technology Co., Ltd., and other organizations have undertaken the completion environmental protection acceptance monitoring work for this project, which was finalized on May 30, 2018. ~ On May 31, 2018, on-site monitoring of this project was conducted.

(III) Investment Situation

The project's total actual investment amounted to 32 million yuan, with environmental protection investments accounting for 4.38 million yuan—13.7% of the total investment.

(IV) Scope of Acceptance

The scope of this acceptance inspection is limited to the completed construction of other products within the "Electronic Materials Project (Phase II)," as well as the upgraded wastewater treatment station project and the gas-fired boiler system along with its auxiliary facilities—specifically, conducting the final environmental protection acceptance for these components.

II. Changes to the Project

The actual construction status of this project, along with any changes compared to the environmental impact assessment and approval requirements, is shown in the table below:

Project Construction Change Summary

According to Circular No. 52 [2015] issued by the Environmental Protection Bureau, "Notice on Issuing the List of Significant Changes for Construction Projects in Certain Industries Under Environmental Impact Assessment Management," the above-mentioned changes have not resulted in any worsening of adverse environmental impacts and therefore do not constitute significant alterations.

III. Status of Environmental Protection Facility Construction

(1) Exhaust Gases

The project implements the following control measures for major sources of gaseous emissions: ① Low-nitrogen combustion technology is applied to gas-fired boilers, and the exhaust gases are discharged into the atmosphere via a 20-meter-high stack. ② Five process exhaust stacks are treated using an alkaline scrubbing system combined with mist elimination, UV photocatalytic oxidation, and activated carbon adsorption. The cleaned gases are then released into the atmosphere through another 20-meter-high stack. ③ All wastewater pools are sealed to capture any emitted odorous gases, which are subsequently treated with an alkaline scrubbing system, mist elimination, and UV photocatalytic oxidation before being discharged through a stack standing at least 20 meters tall (No. 5). ④ To enhance emission management, each workshop has been equipped with mobile fume hoods installed every 2–3 reaction vessels. The collected feedstock-related exhaust gases are routed through in-plant ductwork and fed into the workshop’s centralized organized exhaust treatment system.

(II) Wastewater

The project employs the following treatment measures for wastewater: Workshop process wastewater and alkaline spray wastewater undergo pretreatment using a "grease removal + iron-carbon micro-electrolysis + comprehensive reaction + coagulation & sedimentation" process, after which they are combined with other wastewater and directed to a low-concentration collection tank. From there, the effluent is further treated through a sequence of processes: "equalization + sedimentation + air flotation + hydrolysis acidification + anoxic-aerobic treatment + secondary sedimentation + coagulation & sedimentation + advanced oxidation + comprehensive reaction + coagulation & sedimentation + sand filtration + activated carbon filtration." Once the treated water meets discharge standards, it is conveyed via the development zone’s sewage network to the Laiyang City Second Wastewater Treatment Plant for final processing.

(III) Noise

The project implements the following noise control measures: ① Priority is given to selecting low-noise equipment during design; vibration-damping pads are installed under the bases of material pumps, motors, and other machinery, along with indoor sound insulation. Silencers are also fitted on hot-air ducts, while operation rooms are equipped with soundproof doors and windows. ② Major noise sources are positioned as close as possible within the workshop, and the central control room features double-glazed windows. Additionally, wall materials with excellent sound-absorbing properties are chosen. During structural design, vibration-isolating suspended ceilings, inner walls with shock-absorbing features, and vibration-reducing floors are incorporated. Large equipment like material pumps are mounted on independent foundations to minimize noise caused by resonance. Special attention is paid to seismic and impact-resistant pipe layouts, supports, and hangers, further reducing noise emissions into the surrounding environment. Finally, rotating machinery within the workshop is isolated using the factory’s solid brick walls for enhanced soundproofing.

(IV) Solid Waste

The solid waste generated by this project and its disposal measures are as follows: ① Hazardous waste will be entrusted to a qualified organization for proper handling; ② Municipal solid waste will be managed by the sanitation department.

(V) Other

The proposed project has constructed one 1,000-meter structure. ³ An accident pool is in place to store wastewater generated during emergencies, preventing process wastewater from being discharged externally in the event of an incident. The entire plant features 1,200 square meters of green space. The company has a robust environmental management system and well-established environmental regulations and procedures.

4. Acceptance Monitoring Results

According to the operating condition certificate provided by Shandong Shenghua New Materials Technology Co., Ltd., the production conditions were stable during the acceptance monitoring period, with the production load reaching the designed capacity. More than 75% of environmental protection facilities are operating normally.

Monitoring results indicate:

(1) Exhaust Gases

After the project's gas boiler was equipped with low-NOx combustion technology, the maximum SO2 emission concentration at the boiler chimney outlet was 4 mg/m³. ³ , the maximum NOx emission concentration is 68 mg/m³ ³ , the maximum emission concentration of smoke and dust is 5 mg/m³ ³ , complying with the Level 2 standards for key control areas specified in Table 2 of the "Shandong Province Regional Comprehensive Emission Standards for Air Pollutants" (DB37/2376-2013); during on-site monitoring, the flue gas from the boiler chimney consistently exhibited a Lignmann blackness level of Grade 1, meeting the requirements of the "Boiler Atmospheric Pollutant Emission Standard" (GB13271-2014). Operating continuously for 24 hours a day over 300 days per year, this boiler emits SO₂ ₂ Emissions are 0.060 t/year for CO₂, 1.064 t/year for NOx, and 0.068 t/year for smoke dust.

The emission concentrations of benzene, toluene, xylene, total non-methane hydrocarbons, and hydrogen chloride from the five process exhaust stacks of this project must comply with the standards specified in Table 5 and Table 6 of the "Emission Standard of Pollutants for Petrochemical Industry" (GB31571-2015). Additionally, the emission rates must meet the Level 2 requirements outlined in Table 2 of the "Comprehensive Emission Standard for Air Pollutants" (GB16297-1996). 。

(3) Monitoring results indicate that the exhaust gas emitted from the wastewater treatment plant's stack complies with the standards specified in Table 2 of the "Emission Standard for Odorous Pollutants" (GB14554-93).

(4) Monitoring results indicate that the project's non-methane total hydrocarbons, benzene, toluene, xylene, methanol, and HCl emissions at the plant boundary—measured as uncontrolled releases—comply with the "Comprehensive Emission Standards for Air Pollutants" (GB 16297-1996). Additionally, ammonia, hydrogen sulfide, and odor concentrations emitted uncontrolled at the plant boundary meet the Class II standards outlined in Table 1 of the "Emission Standard for Odorous Pollutants" (GB 14554-93).

(II) Wastewater

The project's wastewater contains key pollutants with average daily emission concentrations ranging from 397–485 mg/L for COD and 3.11–3.30 mg/L for NH3-N. These effluents are discharged into the Laiyang Second Wastewater Treatment Plant at rates of 11.7 tons/year for COD and 0.28 tons/year for NH3-N. The pollutant concentrations—both COD and NH3-N—meet the indirect discharge standards outlined in Table 1 and the standards specified in Table 3 of the "Emission Standards for Pollutants in the Petrochemical Industry" (GB31571-2015), as well as the Class B requirements of the "Water Quality Standard for Sewage Discharge into Urban Sewer Systems" (GB/T31962-2015) and the influent quality criteria set by the treatment plant. After being treated at the Laiyang Second Wastewater Treatment Plant to meet the Grade 1A standard under the "Pollutant Emission Standards for Municipal Wastewater Treatment Plants" (GB18918-2002), the treated wastewater is then discharged into the Bailong River.

(III) Noise

During the acceptance monitoring period: The daytime noise levels at the plant boundary met the Class 3 requirements of the "Environmental Noise Emission Standard for Industrial Enterprises' Boundaries" (GB 12348-2008).

(IV) Ambient Air Quality

As shown in the table above, the air quality in the area where the proposed project is located is relatively good. The monitoring concentrations of each pollutant at the single atmospheric baseline monitoring point selected for the environmental protection acceptance inspection upon completion of this project comply with both the Class II standards outlined in the "Environmental Air Quality Standard" (GB 3095-1996) and the maximum permissible concentration limits for harmful substances in residential areas specified in the "Hygiene Standard for Industrial Enterprise Design" (TJ36-79).

According to monitoring results, after the trial operation of the proposed project, no significant impact was observed at any sensitive locations, and ambient air quality remained largely unchanged compared to the situation during the project's construction phase.

(5) Groundwater Environmental Quality

The monitoring results show that all groundwater parameters of the project meet the Class 3 standards outlined in the "Groundwater Environmental Quality Standards."

5. Total Volume Control

The project emits 4.01 tons/year of CODcr, 0.032 tons/year of ammonia nitrogen, 0.060 tons/year of SO2, 1.064 tons/year of NOx, and 0.068 tons/year of smoke/dust. The project complies with the total emission control requirements.

6. Acceptance Conclusion

Shandong Shenghua New Materials Technology Co., Ltd.'s Electronic Materials Project (Phase II, Part 1) has successfully implemented the Environmental Impact Assessment system, with all environmental protection procedures fully completed. Key environmental measures outlined in the EIA and its approval have been largely put into practice. During the acceptance monitoring period, emissions of exhaust gases, wastewater, and noise levels at the plant boundary all met the relevant regulatory standards. Provided that the corrective actions and recommendations proposed by the acceptance team are effectively addressed, the project now meets the conditions for completion acceptance of environmental protection measures.

VII. Corrective Measures and Recommendations

1. As soon as possible, conduct a hazardous waste identification for the polyaluminum chloride generated during the process. Until the results are available, it must be managed as hazardous waste in accordance with environmental regulations.

2. Strengthen hazardous waste management by ensuring proper segregation and segregated storage, and clearly displaying hazardous waste labels.

3. Currently, there are no monitoring methods available for some pollution items. Once the national standards for formal testing methods are released, supplementary tests will be conducted to ensure emissions meet the required standards.

4. Strengthen production management to ensure the airtightness of sealed equipment, enhance the collection efficiency of gas-harvesting systems, and improve the overall effectiveness of waste gas treatment.

5. Strengthen the management of environmental protection facilities, ensure stable and efficient operation of equipment, and guarantee that pollutant emissions meet regulatory standards.

6. Strengthen environmental risk management, conduct thorough emergency training and drills, and reduce the risk of environmental incidents at the enterprise.

Acceptance Team

June 15, 2018