The China Petroleum and Chemical Industry Federation (CPCIF) issued an official statement last week, announcing that color masterbatch should be categorized into the plastic product [processing] sector.

 

The Beijing-based quasi-governmental group contends that color masterbatch manufacturing is a process that only involves physical mixing with no chemical reaction. It's relatively safe and "has never caused any severe production accidents."

 

Color masterbatch is a mixture of pigments and carrier resins. The manufacturing process consists of heating, mixing, cooling and granulating. But that doesn't really justify labeling it as plastics processing.

 

Actually, the real motive of the trade group is trying to help color masterbatches makers to dodge Chinese regulations on chemical products manufacturing.

 

The "unclear categorization" has caused color masterbatches makers "unnecessary troubles" in recent years, the China Chemical Industry News said, referring to more stringent regulations on chemical firms' location, workplace safety, and environmental protection compared to plastic processors.

 

The report cited a 2011 case where a color masterbatch producer in Jiangsu province was ordered to halt production in the midst of a government campaign to crack down chemical companies. Later, it managed to convince the regional government that it's a plastic processor and got out of the enforcement.

 

As plastic processors, color masterbatch makers would be able to enjoy not only more lax safety and environmental scrutiny, but also lower tax rate for exports.

 

It will be interesting to see if the Chinese government adopts CPCIF's suggestion.