I The Current Development
As one the three pillar industries of Guangzhou, the petrochemical industry has achieved great progress in recent years. In 2009, the petrochemical companies above the designated size realized the industrial output value of RMB 162.843 billion yuan, up by 1.7 percent year on year, taking up 13.03 percent of the total industrial output value of the same-sized industrial companies.
Until now, more than 20 from Fortune Global 500 MNCs have invested in Guangzhou’s petrochemical industry, including Exxon Mobil, Procter & Gamble, BASF, Bayer, Total Group, BP, Shell Eastern, Dow Chemical, Dupont, ICI Group, Owens’Corning, Akzo Nobel, LG Chem, Nippon Oil Corp, Marubeni, Mitsubishi, Asahi Kasei, Itochu Cable, Idemitsu Kosan, Toyota, Formosa Plastic Group and so on.
The petrochemical industry chain has been increasingly completed. At present, a complete petrochemical industry chain, led by major companies and projects, has come into being, covering petroleum refinery and ethylene cracking in the upstream market as well as fine chemistry, and supporting products for petrochemicals and new materials in the downstream market.
The industrial layout will be emphasized on the development of industrial clusters. Presently petrochemical companies mainly settle down in the following three areas: Huangpu Petrochemical and Further Processing Base, Luogang New Material and Fine Chemical Industrial Base and Nansha Port-Related Petrochemical Industrial Base （one of Guangdong’s major five petrochemical industrial bases）.
The petrochemical market of the city boasts of large capacity and a sound system. As one of the biggest markets of petrochemical products in China, Guangzhou’s petrochemical industry is gradually gaining the upper hand of product prices. Currently, prices of petrochemical products traded in some Guangzhou trading centers, such as Guangzhou Chemical Trading Center, South China Petrochemical Trading Center and Guangzhou Plastic Trading Center, have exerted huge influences on prices in other parts of the country.
II Development Priorities
i Pillar Industrial Bases
（i） Huangpu Petrochemical and Further Processing Base
Surrounding the oil refining and ethylene reconstruction project of Sinopec Guangzhou Company, which now occupies 3.75 square kilometers, another three square kilometers are allocated for construction of the Eastern Petrochemical Production Base.
（ii） Luogang New Material and Fine Chemical Industrial Base
Planned in the Development Section of Guangzhou Science City, the New Material Industrial Base will lay stress on the completion of an innovative service system for the new materials industry so as to create a complete industrial chain for new materials.
The Fine Chemical Industrial Base will lie in the Development Section of East Zone, Development Section of West Zone and Yonghe Development Section.
（iii） Nansha Port-Related Petrochemical Industrial Base
Nansha Port-Related Petrochemical Industrial Base is planned in the area between the 15th and 17th Congs of Wanqingsha Town, covering a planned area of eight square kilometers, mainly consisting of Xiaohu Island, Wangqingsha and Sanmin Island.
Xiaohu Island will set priority to the development of six industries, namely, petroleum and natural gas chemistry, basic organic chemical raw materials, fine chemistry, polymer materials, life medicine and new chemical materials. Wanqingsha is devoted to explore new leading projects of raw materials and manufacturing processing facilities for the upstream and midstream markets of the petrochemical industry so as to offer more basic chemical raw materials, such as ethylene, propylene and benzene, to petrochemical parks, Guangdong and the Pearl River Delta for their further development. Sanmin Island will be developed with emphasis on the construction of a fine chemical industry base, mainly offering synthetic materials, engineering plastics and fine chemical products needed by pillar industries such as electronics, home appliances, machinery and automobiles, and highly processed petrochemical products which are in great demand.
ii Investment Promotion Focus
（i） Leading Projects of Raw Materials Should be Further Introduced
The focus of investment promotions should be put on the introduction of multinational petrochemical warehousing enterprises, the construction of large low-temperature tanks for ethylene, propylene and liquid chemicals, and the import of raw materials from Middle East, with an aim to provide more basic chemical raw materials such as ethylene, propylene and benzene for petrochemical parks, Guangdong and Pearl River Delta for their further development.
（ii） The Mid-stream And Down-stream Petrochemical Industry Chain Should be Expanded Fully
To meet the great demand for chemical products from automobile, electronics, shipbuilding industries in Guangzhou, priority shall be given to the development of downstream petrochemical industries, such as paint （automobile paint, high weathering architectural latex paints, functional coatings, etc）, daily-use chemical products and electronic chemicals. Meanwhile,the development of the midstream petrochemical industries, such as those concerning polyethylene, polypropylene, ethylene glycol, polyvinyl chloride, phenol and acetone, should be promoted so as to finally form a complete and internationally competitive petrochemical industry chain.
Guangzhou City
