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  • Fireworks Industry Remediation and Intensified Concentration of Industrial Structure

Fireworks Industry Remediation and Intensified Concentration of Industrial Structure

Published by admin at December 1, 2020   Total View : 561

Under the impact of serious explosion accident of fireworks factory in Liuyang in 4th December,2019 and the COVID-19 pandemic, huge fluctuations occur in domestic fireworks production, and the industry remediation forced the withdrawal of partial fireworks manufacturers. The relevant functional departments of Hunan Province announced the retaining of 65% fireworks and firecracker manufacturers in Hunan province and 31% in Liuyang, the main production area, by 2021, which means the withdrawal or shutdown of a large number of fireworks and firecracker manufacturers. In this regard, a brief analysis is as follows:

  1. From a macro perspective, as a folk-custom product that has been passed down for thousands of years in China, the fireworks has been preserved with Chinese history and culture till today, undergoes technological innovation and cultural sublimation, and will not be replaced.
  2. Looking at the supply chain of Red Lantern fireworks products, the remediation of fireworks industry is aimed at eliminating the non-standard and unsafe fireworks manufacturers, and retaining and developing safe, standardized and sound fireworks manufacturers. It is such crackdown that enables these retained manufacturers the opportunity to standardize safety management and improve yield steadily.
  3. Product innovation has never stopped. Most of the retained manufacturers have strengthened their efforts in independent research and development. The research and development of new fireworks products has been enhanced through capital investment and the introduction of young technical personnel, aiming at the development of fireworks products with higher cultural connotation.
  4. Fireworks production is one of the main industries in Liuyang, Hunan Province, China. While maintaining economic growth, the government has increased investment and management in the fireworks industry by improving standardized management of fireworks industry and establishing centralized central warehousing system.

To sum up, the crackdown of fireworks industry has promoted the safe and sound development of the industry. What do you think are the opportunities after the remediation of the fireworks industry? Your valuable comments are highly appreciated.

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