How China's New Waste Policy Turns Industrial Byproducts into Free Raw Materials

Why China's new solid waste policy is reshaping the economics of industrial byproducts – and what it means for cement and aggregate producers worldwide

In early 2026, the State Council of China issued the Solid Waste Comprehensive Management Action Plan – commonly referred to as the "Ten Solid Waste Measures" – a landmark policy that has fundamentally altered how industrial byproducts such as desulfurization gypsum, fly ash, and slag are valued and traded. The policy mandates stricter controls on the storage and disposal of solid waste, while simultaneously promoting resource utilization. The results have been dramatic, particularly in regions with high concentrations of heavy industry. In Baoding, Hebei Province, a leading cement producer has demonstrated the practical impact: desulfurization gypsum and other industrial byproducts are now being received free of charge, and in some cases, suppliers are even paying to have their waste materials hauled away. For quarry operators, cement producers, and aggregate manufacturers, this shift presents both a challenge and an opportunity. The challenge is adapting to new material flows and quality requirements; the opportunity is accessing low-cost or zero-cost raw materials that can significantly improve margins. At OCP Mechanical Company, with over 40 years of manufacturing experience, we supply a comprehensive range of crushing, screening, and grinding equipment – including PE Series jaw crushers, HST Series cone crushers, and VSI 6X sand making machines – designed to process industrial byproducts efficiently and cost-effectively, all at factory-direct prices.

From disposal cost to revenue source – the economics of industrial byproducts under the new policy

For decades, industrial byproducts like desulfurization gypsum, fly ash, and slag were viewed primarily as waste – materials that required expensive disposal and carried environmental liabilities. The "Ten Solid Waste Measures" have reversed this equation. The policy places the responsibility for solid waste management squarely on generators, while actively promoting the utilization of industrial byproducts in construction materials. Large state-owned enterprises, which have the scale and compliance infrastructure to meet the new standards, have become the primary beneficiaries. In the Baoding region, the policy has enabled a major cement producer to transform its approach to raw materials. By establishing direct, long-term relationships with nearby steel mills and power plants – bypassing third-party intermediaries – the company has secured a steady, reliable supply of desulfurization gypsum at no cost. In some cases, the situation has gone even further: certain byproduct categories are now being delivered with the generator paying a fee for their removal and utilization. This shift turns a traditional cost center into a potential revenue stream – a fundamental change in the economics of cement and aggregate production.

The compliance advantage – why scale and integration matter

The new policy does not benefit all producers equally. Companies that lack the scale or the infrastructure to comply with the new regulations face significant challenges. The "Ten Solid Waste Measures" require robust documentation, transparent material flows, and verifiable utilization pathways. Smaller producers without dedicated compliance teams or integrated supply chains may find themselves at a disadvantage. Conversely, large, vertically integrated operators with established relationships with industrial partners are well-positioned to capture the benefits. By developing direct connections to power plants and steel mills, these companies can bypass the intermediaries that previously captured a significant portion of the value. This integration of upstream byproduct supply with downstream manufacturing creates a virtuous cycle: lower raw material costs, reduced environmental liabilities, and improved margins. For aggregate producers and cement manufacturers, investing in the processing equipment needed to handle these byproducts is becoming a strategic imperative. OCP Mechanical offers complete systems for processing industrial byproducts – from primary crushing to fine grinding and classification – enabling operators to integrate these materials seamlessly into their production lines. All product specifications, including capacity and power ratings, are continuously updated; for the latest parameters, please consult our online customer service.

Processing industrial byproducts – equipment requirements and considerations

Industrial byproducts such as desulfurization gypsum, fly ash, and slag present unique processing challenges. Desulfurization gypsum, for example, typically contains significant moisture and can be sticky, requiring careful handling and specialized equipment to prevent build-up and blockages. Fly ash is a fine, abrasive material that requires efficient classification and dust control. Slag, a byproduct of steelmaking, is hard and abrasive, demanding robust crushing and grinding equipment. For operators looking to incorporate these materials into their production, selecting the right equipment is essential for achieving consistent quality and low operating costs. A typical processing line for industrial byproducts may include primary crushing for slag, drying and grinding for desulfurization gypsum, and classification for fly ash. OCP Mechanical's comprehensive range of crushing and screening equipment – PE Series jaw crushers, HST Series cone crushers, and VSI 6X sand making machines – can be configured to process a wide range of industrial byproducts, helping operators turn waste materials into valuable raw materials. Prices are for reference only and are subject to change based on configuration and market conditions.

The broader trend – resource utilization and the circular economy

The "Ten Solid Waste Measures" are part of a broader global trend toward resource utilization and the circular economy. Governments worldwide are increasingly implementing policies that promote the use of industrial byproducts in construction materials, driven by both environmental concerns and the need to secure raw material supplies. In Europe, the revised Waste Framework Directive sets recycling targets for construction and demolition waste. In North America, various state and provincial programs promote the use of recycled materials in infrastructure projects. For quarry and aggregate producers, these trends create both opportunities and obligations. The opportunity lies in accessing low-cost raw materials; the obligation lies in investing in the equipment and processes needed to utilize them effectively. OCP Mechanical is committed to supporting operators in this transition, offering reliable, high-performance equipment that enables efficient processing of industrial byproducts.

Sample industrial byproduct processing parameters (For reference only)

All figures and recommendations are for reference only and are continuously updated. For the latest parameters, please consult our online customer service. Prices are for reference only and are subject to change based on configuration and market conditions. Actual results may vary depending on feed characteristics, operating conditions, and maintenance practices. OCP Mechanical reserves the right to update technical data and pricing without prior notice.

Why OCP Mechanical is your partner for industrial byproduct processing

With over 40 years of manufacturing experience, OCP Mechanical combines engineering excellence with a deep understanding of the challenges and opportunities facing cement, aggregate, and quarry operators. We are a factory-direct supplier, meaning you avoid the markups charged by dealers and intermediaries. Our comprehensive range of crushing, screening, and grinding equipment is built with high-quality components and is designed for reliable performance in the most demanding applications. We provide comprehensive after-sales support, including spare parts availability, technical assistance, and on-site training. Our logistics team has extensive experience shipping to global destinations, ensuring timely delivery of equipment and parts. We are committed to helping you achieve efficient, productive processing that supports your business growth.

Conclusion – Turn waste into value with the right processing equipment

The "Ten Solid Waste Measures" have fundamentally changed the economics of industrial byproducts in China, creating new opportunities for operators who can process these materials effectively. For cement and aggregate producers, the ability to access low-cost or zero-cost raw materials is a significant competitive advantage. OCP Mechanical offers reliable processing equipment that helps operators turn industrial byproducts into valuable raw materials, backed by expert guidance and responsive after-sales support. Our online customer service team is available 24/7 to provide free consultation, technical data, and a customised quotation for your operation. Click the chat button now – let us help you capture the value in industrial byproducts.