8/11/2019 1215158543959.pdf

1/4

74 White Paper on Guangzhou Foreign Trade and Economy 2008

Petrochemical Industry

Brief Introduction

As one of the pillar industries of Guangzhou, the city's petrochemical sector had a gross

industrial output value of 140.807 billion yuan in 2007 with a year-on-year increase of

26.7%, accounting for 14.27% of the city's aggregate value and contributing to 18% of the

increase therein. With the reform and upgrade of Guangzhou Petrochemical Complex (GPC),

Guangzhou will have the capability to rene 13 million tons of petroleum and manufacture

800,000 tons of ethylene. As the future cooperation project between Sinopec and the KuwaitiNational Petroleum Company is in progress. The above-mentioned two gures will further

rise to 28 million tones and 1.8 million tons respectively.

Thanks to the driving effects of GPC and other leading enterprises, the petrochemical sector

in Guangzhou is now a competitive industry system with complete and diversied products,

including petroleum, benzene, diesel, coke, synthetic detergents, etc. In the meantime, with

the leading role of major enterprises in refinery and ethylene, there have been constantly

new developments in the sectors of petroleum processing, deep processing of petroleum

chemicals, ne chemistry and new petroleum chemical materials.

The development of Guangzhou's petrochemical industry has the following two

characteristics:

I. Obvious Advantages in Industrial Development

In terms of market factors, Guangzhou has the largest market of petroleum chemicals in the

nation, with the consumptions of ethylene, the ve major kinds of general-purpose resins,

the five major kinds of engineering plastics and paints accounting for over 20% of the

national totals, playing a very important role across the nation as far as market capacity and

8/11/2019 1215158543959.pdf

2/4

Key Industries Petrochemical Industry 75

scale are concerned.

As for the industrial chain, several multinational chemical giants such as Exxon, Basf

and Dow Chemical have settled in Guangzhou. Preliminary work has been carried out for

integrated renery project of 15 million tons under the cooperation between Sinopec and the

Kuwaiti National Petroleum Company as well as for the renovation & expansion ethylene

project with an annual capacity of 800,000 tons in the name of GPC. The petrochemical

industrial chain in Guangzhou will be expanded with greater scale and competitiveness from

renery to ethylene cracking and further to ne chemical products downstream.

In terms of human resources, Guangzhou boasts a great number of high-level professionals

in the petrochemical industry. And there are also such top-grade research institutes and

universities as School of Chemistry and Chemical Engineering of Sun Yat-sen University,

School of Chemical Engineering and Energy and School of Chemical Science of South

China University of Technology, School of Chemistry and Environment of South China

Normal University, School of Light Industry & Chemical Engineering of Guangdong

University of Technology and School of Chemistry and Chemical Engineering of Guangzhou

University.

II. Signifcant Industrial ClusterWith the scientific planning and construction efforts, the layout of Guangzhou's

petrochemical industry is gradually rationalized. Currently several major clusters of the

petrochemical industry have been formed including Huangpu Petro-chemistry Base and the

GETDD Fine Chemistry Base in the east as well as the Nansha Near-Port Petro-chemistry

Industrial Base in the south.

The eastern petrochemical base mainly covers the following: the GPC Industrial Park,

Huangpu Industrial Park, Huangpu Jitang Fine Chemistry Industrial Base as well as Eastern

Zone and Yonghe Zone of GETDD. With the expansion of GPC's refinery and ethyleneproject, we have extended the chemical industrial chain, with the focus on integrated

petrochemical development. Besides, the alternative and auxiliary industries as well as

products of nishing & deep processing have been developed in order to form an industrial

chain of "petroleum chemical engineering--ne chemistry industry--deluxe plastics--terminal

products".

Guangzhou Development District focuses its development on fine chemical industry and

has set up functional zones for washing and personal nursing products. Priority will also be

given to the fine chemistry industry or some important products therein, with reasonable

8/11/2019 1215158543959.pdf

3/4

76 White Paper on Guangzhou Foreign Trade and Economy 2008

arrangements to optimize the industrial layout and structure of ne chemistry.

Nansha Port-related Petro-chemistry Industrial Base will be mainly based in Wanqingsha

to attract investments from world famous multinational petrochemical enterprises with its

expansive land areas, geographical advantages as the estuary of Pearl River and the sea as

well as the excellent coastline resources.

According to the principle of mutual connection and support of industrial chains within the

zone, oil rening and petroleum chemistry will take the leading role as the major players

of petroleum chemical deep processing, fine chemistry and new materials, so as to re-

construct the overall advantages and industrial framework of the petrochemical industry.

The zone covers an area of about 30 square kilometers under planning with focus on such

petrochemical clusters as Xiaohu Petrochemical Industrial Park, Huangge Industrial Park,

Wanqingsha Petrochemical Industrial Zone, etc.

Development Priorities

Guangzhou will further facilitate the development of the petrochemical industry. To be more

specific, advanced manufacturing technologies will be adopted to enhance the scale and

quality of leading petrochemical sectors such as oil rening and ethylene. Based above, the

basic petrochemical materials will be increased to strengthen the deep processing industry of

petrochemical materials, so as to build a complete and modern industrial chain and form a

modern petrochemical industrial system of strong connections with such superior sectors as

automobiles, electronics, household appliances, textile and other light industries. Measures

will be taken to accelerate the construction of the Huangpu Petro-chemistry Base and the

Fine Chemistry Base at Guangzhou Development District in the east as well as the Nansha

Petro-chemistry Industrial Base in the south. The aim is to build it into a base of world level

for modern integrated oiling & petrochemicals as well as downstream deep processing to

make it the major platform for the future structural adjustment and upgrade of Guangzhou's

petrochemical manufacturing industry Focus will be on the the following industries:

I. Petroleum Refning and Ethylene

In line with the development principles of "local development, accelerated progress and

attention to an environmental protection", the advantages of integrated petro-chemistry will

be optimized, so as to greatly upgrade elevator raise the comprehensive processing capability

8/11/2019 1215158543959.pdf

4/4

Key Industries Petrochemical Industry 77

of petroleum rening and construct a rening base of tens of million tons and a mega tonic

ethylene base.

II. Polyethylene and Polypropylene

Efforts will be paid to construct large polyolen apparatus integrating both upstream and

downstream in addition to the mega tonic production bases for polyethylene, polypropylene,

polystyrene and other resins. New technologies will be applied, i.e. catalysts, polymerization

and application as well as clean production process, so as to sharpen the competitiveness

edge of polyethylene and polypropylene products. We encourage the development of such

cutting-edge technologies petrochemical products with economic scale but shortage in

supply in the market, for instance, ABS, acrylic acids, related esters, etc.

III. Polyvinyl Chloride (PVC)

Efforts will be placed to bring into play the respective initiatives and advantages of central

government-controlled enterprises and local businesses and actively introduce technologies

and investments. The initiative is to balance ethylene resources, to construct PVC apparatus

with the capacity of 300,000 tons/year and build the supporting devices of ion membrane

chlorine alkali with the capacity of 200,000 tons per year.

IV. Paints

i. Car paints: We will actively carry out investment promotion and joint venture

cooperation to develop paints for deluxe sedans. A 10,000-ton car paint production base as

per high standards is scheduled to be built. .

ii. Weather-proof latex paints for construction: Great endeavors have been made to

develop construction paints with weatherproof capacity of over 10 years as well as excellent

stain resistance, such as silicone acrylic emulsion, uorocarbon emulsion and other kinds ofquality binder emulsion.

iii. Functional paints: We will make use of the abundant rare-earth resources in

Guangdong to develop rare-earth luminous paints, in addition to heatproof and re-proof

paints.