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Dukang Distillers sees steep decline in output due to China's pollution controls

CHINA'S baijiu maker Dukang Distillers Holdings said its production and operations for the fiscal year ended June 30 have been significantly affected by the continued severe and intensified air pollution and smog in China.

With the onset of the winter-heating season from Nov 15, Ruyang Environmental Protection Bureau had on Nov 16 further issued targeted orders to various industries, including the group, to restrict production and cut emissions of industrial pollutants.

As a result, the group expects a significant decrease in its production by 60 to 70 per cent for its second quarter ending Dec 31, 2017 and third quarter ending March 31, 2018.

Its baijiu production is expected to gradually recover from March 15, 2018 with the improvement of air quality after the end of the winter-heating season, Dukang Distillers said on Thursday.

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