Connect Chemicals shutdown

Date: September, 2017

Connect Chemicals has been shutdown temporarily for at least 3 months, while they are rectifying to meet environmental standards.

China lanuched strict environmental inspection from 2016. The govenment shut down polluting factories, mines and processing facilities. For paper industry, they eliminated backward and excess capacity and shut down many small paper factories.  This lead to capacity reduction of 40%.

Connect Chemicals is located an industrial park in Penglai, North of China. It is the world’s largest producer of leuco dye, which is a key dye chemical to produce thermal paper coating. During its shutdown, thermal paper shortage has passed to the globe gradually. The shortage could last until mid 2018.

Price Increase


Till December 30, 2017, Connect Chemicals hasn’t returned normal production. The price of leudo dye from other suppliers continues to increase at a high speed.  This leads to unstoppable increasing price of thermal paper.