Core Viewpoint - The article discusses the challenges faced by Shandong Hongri Chemical Co., Ltd. in the context of the "retreating from the city to the park" policy implemented by the Linyi government, highlighting the conflicts between the company and local authorities over land use and compensation issues stemming from environmental regulations and industrial upgrades [1][2][4]. Group 1: Background and Context - In 2015, Linyi City faced severe air pollution, prompting strict environmental regulations that led to the closure of 1,255 enterprises in the Luozhuang District, creating significant pressure for industrial upgrades [1][2]. - Shandong Hongri Chemical, a well-known fertilizer producer, was acquired by Century Sunshine (00509.HK) in 2016, with expectations for industrial enhancement and new business opportunities [1][6]. Group 2: Disputes and Challenges - Disputes arose between Hongri Chemical and the Luozhuang government regarding the "retreating from the city to the park" policy, with Hongri claiming significant losses due to government inaction on land use changes [2][4]. - The local government contended that Hongri's claims were unfounded, asserting that the company did not comply with the necessary requirements for land use changes and that the government had fulfilled its obligations [2][4][10]. Group 3: Financial Implications - Hongri Chemical reported a significant asset loss of 2.74 billion yuan as of April 30, 2019, due to the ongoing disputes and the inability to convert industrial land to commercial use [10][12]. - The company had invested over 1 billion yuan in upgrading its facilities and achieved profitability by 2018, but the ongoing land disputes hindered further development [6][10]. Group 4: Government Response and Future Prospects - The Luozhuang government has acknowledged the need to assist Hongri Chemical in resolving its issues but emphasized that the company must complete soil remediation before land can be repurposed [12][16]. - Despite the challenges, the local government has successfully attracted new industries and improved the economic landscape in the region, indicating a potential for future growth despite Hongri's ongoing struggles [18][20].

Core Viewpoint - The article discusses the challenges faced by Hongri Chemical and the Linyi government regarding the "retreating from the city to the park" policy, highlighting the conflicts over land use and compensation issues that have persisted for years [1][2][4]. Group 1: Background and Context - In 2015, Linyi City faced severe air pollution, leading to strict environmental regulations and the closure of 1,255 enterprises in the Luozhuang District, which created significant pressure for industrial upgrades [1][5]. - Hongri Chemical, a well-known fertilizer producer, was acquired by Century Sunshine in 2016, with expectations for industrial upgrades and new business opportunities [1][6]. Group 2: Disputes and Challenges - Disputes arose between Hongri Chemical and the Luozhuang government over issues such as factory compensation and land use changes, with Hongri claiming losses of billions due to government inaction [2][4]. - The local government contended that Hongri's factory demolitions were not mandated by them, and the company was not cooperating with the necessary processes for land use changes [2][4]. Group 3: Policy and Agreements - The "retreating from the city to the park" policy aimed to relocate polluting industries to designated industrial parks, with plans to move 59 enterprises within three years [5][6]. - In December 2019, an agreement was signed between the Luozhuang government and Hongri Chemical to follow specific policies for land development and support for the company's transition [11][12]. Group 4: Financial Implications - Hongri Chemical reported significant asset losses, with an estimated value of 2.74 billion yuan as of April 2019, including machinery, buildings, and land use rights [10][12]. - The company received a government subsidy of 19.02 million Hong Kong dollars for relocation, but the actual land use change remains uncertain due to regulatory hurdles [8][9]. Group 5: Current Status and Future Outlook - As of 2024, Hongri Chemical's land is facing judicial auction due to debt disputes, while the local government has successfully attracted new industries and improved the economic landscape in the region [17][18]. - The ongoing legal disputes between Hongri Chemical and the Luozhuang government highlight the complexities of land use policies and the challenges of transitioning from traditional industries to new economic models [19].