China's Guangxi Shenglong Metallurgy Downgraded from Grade A to Grade C for Data Fraud
2026-06-08 14:13
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en.Wedoany.com Reported - Recently, the Department of Ecology and Environment of Guangxi Zhuang Autonomous Region officially issued a notice, implementing an environmental performance downgrade for Guangxi Shenglong Metallurgy Co., Ltd. (referred to as "Shenglong Metallurgy"), a private steel enterprise with an annual output of 17 million tons of steel, directly from Grade A to Grade C, with a one-year ban on applying for Grade A or B assessments. On the same day, the company was formally removed by the China Iron and Steel Association (CISA) from the public notice of ultra-low emission transformation assessment and monitoring, and is prohibited from reapplying for one year. This penalty stems from multiple serious environmental issues at the enterprise, including online monitoring data fraud, manual monitoring report fraud, and fugitive emissions.

According to the notice issued by the Department of Ecology and Environment of Guangxi Zhuang Autonomous Region, Shenglong Metallurgy was placed on file and penalized for issues including fraudulent test report data, interference with monitoring equipment operation, and fugitive emissions. Subsequently, on May 11, 2026, the China Iron and Steel Association, in accordance with relevant provisions of CISA Environmental Special Document No. 26 of 2026, formally revoked its public notice of ultra-low emission transformation assessment and monitoring. The CISA notice explicitly states that Shenglong Metallurgy had issues such as "online monitoring data fraud, manual monitoring report fraud, and failure to stably meet ultra-low emission requirements," and was penalized by the local ecological environment authority. Effective immediately, the public notice is revoked, and the company is prohibited from reapplying for one year. A previously issued document from the Ministry of Ecology and Environment pointed out that performance grading is an important institutional innovation in atmospheric environment governance. During heavy pollution weather warnings, Grade A enterprises can autonomously reduce emissions, while Grade C enterprises need to intensify emergency emission reduction efforts. According to new regulations issued by CISA on April 27, 2026, enterprises subjected to administrative penalties for serious issues such as fraud will have their public notice qualifications revoked and be prohibited from reapplying for one year.

Founded in 2003 and located in the Port Area of Fangchenggang City, Guangxi, Shenglong Metallurgy is a private steel enterprise introduced under the "Hundred Enterprises Entering Guangxi" strategy implemented by the Guangxi Zhuang Autonomous Region government during the wave of Western Development. The company covers an area of over 8,000 mu (approximately 533 hectares), employs more than 12,000 people, produced 17 million tons of steel in 2025, achieved operating revenue of 111 billion yuan, and has cumulatively paid over 10 billion yuan in taxes, making it one of Guangxi's important private steel enterprises. Environmental performance grading in the steel industry is typically divided into four levels: A, B, C, and D. Grade A represents enterprises with environmental governance reaching the industry's advanced level, allowing autonomous emission reduction during heavy pollution weather; Grade C enterprises must strictly implement production suspension and restriction measures during emergency response periods.

This downgrade of Shenglong Metallurgy from Grade A directly to Grade C is a penalty decision made in accordance with atmospheric environmental performance grading management regulations and the work requirements of the Ministry of Ecology and Environment. It is a typical case of the Ministry of Ecology and Environment implementing performance grading for key industries, encouraging "advanced" enterprises and spurring "lagging" ones through differentiated management policies.

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