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Industly Sector Analysis
Pet
China
China
1993
Iindustly in East
Reports provided by:
International Trade Administration, Office of the PRe and Hong Kong
Distributed by and in cooperation with:
Information is our business.
u.s. DEPARTMENT OF COMMERCE
Technology Administration
National Technical Information Service
Springfield, VA 22161 (703) 487-4650 REPRODUCED BY
NATIONAL TECHNICAL
INFORMATION SERVICE
u.s, DEPARTMENT OF COMMERCE
SPRINGFiElD, VA. 22161
National Technical Information Service
Abstract
China
Industry Sector Analysis: Petrochemical Industry in East China
China's economy is one of the world's fastest growing. In 1992, U.S.
firms exported nearly $7.5 billion to China, an increase of 16 percent
as compared to 1991. U.S. Foreign Commercial Service officers in China
prepare market surveys for selected Chinese industry sectors which
offer the best sales prospects for American firms. Industry Sector
Analyses (ISAs) contain statistical and narrative information on
projected market demand, end-users, best prospects, receptivity of
Chinese consumers to U.S. products, and the competitive situation
(domestic production, total imports, U.S. market position, and
competitive factors), and market access (distribution and business
practices, and financing). ISAs also contain key contact information.
INDUSTRY SUBSECTOR ANALYSIS
COUNTRY: CHINA
POST: SHANGHAI
ANALYST: ROSEMARY GALLANT
A. SUMMARY:
SUBSECTOR: PETROCHEMICAL
INDUSTRY IN EAST CHINA
ITA INDUSTRY CODE: CHM
DATE PREPARED: JUNE 15, 1992
This is a regional sectoral report focusing on market
opportunities for U.S. petrochemical equipment and technology
suppliers in East China. The East China Consular District,
comprised of the Shanghai Municipality and the provinces of
Jiangsu, Zhejiang and Anhui, contains 6 of China Petrochemical
Corporation's (SINOPEC's) 39 subsidiaries and the Shanghai
Chemical Industrial Bureau's (SCIB's) plants, managed by the
Shanghai Municipality. East China spends over USD 100 million
annually on imported equipment, technology and services. with
continued expansion and technical renovations planned, demand for
imported technology and equipment is likely to expand to USD 130
million a year by 1995. These developments make East China a
promising market for U.S. production machinery, process
technology and engineering services; all areas where the United
States is very competitive. The opportunities range from direct
sales of equipment and catalysts, to transfer of process
technologies and possible joint ventures. The report includes
information on East China's principal petrochemical complexes
enabling U.S chemical suppliers, equipment manufactures,
engineering firms and other interested parties to contact Chinese
companies directly.
with an output value of USD 2.6 billion in 1991 East China
produces about 27 percent of China's total petrochemical output
and represents an even larger proportion of the production for
some products. For example, East China produces nearly half of
China's chemical fibers (767 thousand tons in 1990 for East
China). The industry in East China has developed rapidly in the
last ten years. Two of the seven petrochemical complexes
included in this study only began production in the 1980s; Yangzi
Petrochemical, China's newest and one of its largest complexes,
began construction in 1984. The expansion has only been possible
with the opening up of China to foreign trade after a long period
of isolation. The industry has absorbed technology and equipment
from allover the world. The united States commands about 25
percent of the market for imported equipment and technology in
East China with roughly USD 25 million in annual sales. The
Chinese appreciate the quality of American products and welcome
contact with U.S. suppliers.
The seven complexes in this report are:
In Shanghai:
In Jiangsu:
In Zhejiang:
In Anhui:
(1) Shanghai Petrochemical Complex (Jinshan or SPC)
(2) Gaoqiao Petrochemical Corporation (Gaoqiao)
(3) Shanghai Chemical Industrial Bureau (SCIB)
(4) Yangzi Petrochemical Corporation (YPC)
(5) Jinling Petrochemical Corporation (JPC)
(6) Zhenhai General Petrochemical Works (ZGPW)
(7) Anqing General Petrochemical Works (AGPW).
B. STATISTICAL DATA
FCS Shanghai requested statistics on imports of technology and
equipment from each of the plants included in this report as
well as from other sources. However, in part because much is
imported and exported through Beijing, and in part because many
statistics are internal secrets, we were unable to obtain
specific regional statistics. Company officials, annual
reports, brochures, statistical yearbooks and the "Shanghai
Chemical Industry" journal provided some total production
figures and exports of chemical products but did not provide
data on capital investment or imports of technology and
equipment. The Addendum section, which provides more details
on the finances, history and major products of each of the
complexes in this report, contains some, albeit incomplete data.
Based on discussions with each of the complexes and foreign
businesspeople in the industry, FCS Shanghai estimates the
share of the major equipment imports market by country from
1986 to 1991 as follows: Japan 30 Percent, United States 25
Percent, Germany 25 Percent, Italy 10 Percent, Other 10 Percent.
Receptivity Score (1-5) = 4
See E. 3 on the reputation of American suppliers.
C. MARKET ASSESSMENT
1. Market Demand
China has invested heavily in refining capacity and in
production of basic chemicals as part of its import
substitution policies. Generally China now has sufficient
production capacity of basic petrochemical products.
Shortcomings in the industry are the limited variety of
products and their variable quality. U.S. companies which
offer technical improvements in these areas, rather than
increasing basic production, may find market opportunities.
Downstream products also offer more opportunities for joint
ventures or other forms of cooperation with foreign firms.
Reliance on imported equipment varies from plant to plant.
Yangzi imported the majority of its production equipment and
acquired licenses for foreign technology. Jinshan imported 9
2
of their 18 sets of equipment while SPC's equipment is mostly
domestically sourced. American products are regarded highly,
the Vnited states is a leading source of imported equipment and
technology for several of the complexes.
2. End-user Profiles
All of the major complexes have the authority to import and
export themselves. (In China, authority to engage in foreign
trade is generally limited to larger industrial companies and
state trading companies.) They are large, comprehensive
industrial complexes with scientific research and development
centers, port and rail facilities and power generating stations
in addition to production facilities. Their management is
sophisticated by Chinese standards. The industry meets
international standards for many of its basic products with
exports from East China of at least USD 500 million in 1991.
They frequently send delegations abroad for training, for
technical exchanges and to inspect the plants of potential
suppliers or business partners. To learn more about export
opportunities, u.s. companies are encouraged to contact them.
3. Decentralization and the Market Economy in East China
SINOPEC determines many production targets, purchases bulk
imports and must approve major equipment purchases. Recent
economic reforms however, are providing enterprises with
greater autonomy and responsibility. Domestic competition is
increasing as are profits through production of value-added
products. A team which includes both complex representatives
and SINOPEC authorities from Beijing generally negotiates joint
ventures and other forms of cooperation, i.e. technology
licensing for the SINOPEC subsidiaries. The complexes import
catalysts, spare parts and materials needed for existing
production independently.
The degree of local autonomy depends on the nature of the
import. For major purchases, the complexes decision-making
power depends on the project category. Capital construction
projects are divided into two classes, I and II. Class I are
new projects and require SINOPEC approval. SINOPEC generally
also has the lead in negotiating Class I projects. U.S.
companies pursuing these projects should visit SINOPEC Beijing
to develop good relations or "guanxi." Frequently the province
where the project is located will provide investment capital in
addition to SINOPEC's funding. In that case, companies should
also develop good guanxi with provincial officials.
Once SINOPEC approves a project, they assign it to a design
institute. The complexes do have their own design institutes
but if the project is particularly large or involves new
technology SINOPEC may assign it to a design institute
directly under SINOPEC management. u.s. companies interested
in supplying a project should work closely with the design
institute to ensure the design is compatible with their
equipment or technology.
3
Class II projects are expansions and of existing
production facilities. There is much more local autonomy on
Class II projects and U.S. companies should concentrate more on
cUltivating and educating the enduser. SINOPEC concurrence
however, is still necessary for the final contract and thus
u.s. firms should include them in networking efforts.
D. Best Prospects
Plans are underway for new projects and expansions to take
place during the Eighth Five Year Plan, 1991-95. The
petrochemical plants will seek foreign investment, technology
and equipment for many of these projects. In addition to the
listed projects, several of the complexes are engaged in
technical renovation of existing facilities.
SHANGHAI PETROCHEMICAL COMPLEX (Jinshan or SPC)
Plans are underway to increase ethylene production capacity
from 300,000 MT per year to 450,000 MT and to renovate the
hydrogen cracker and the aromatics stripper. The following new
projects are also under consideration (expected annual
production in paranthesis): acrylonitrile (150,000 MT), sodium
cyanide (20,000 MT), acrylic fiber (60,000 MT), ethylene glycol
(100,000 MT), polyethylene (200,000 MT), styrene monomer
(80,000 MT), ABS resin (60,000 MT), rubber (60,000 MT), ammonia
(12,000 MT).
SHANGHAI CHEMICAL INDUSTRY BUREAU (SCIB)
The Bureau plans to construct the following facilities during
the Zighth Five Year Plan:
1 A Plastics Auxiliaries Project (22,000 MT), total
investment of RMB 150 MN (USD 30 MN).
2 Acetic Acid Plant (100,000 MT) with a total expected
investment of RMB 500 MN (USD 90 MN).
3 A Cellulose Fibers Project, 50,000 MT of Cellulose and
100,000 MT of fine Methanol with a total expected
investment of USD 200 MN.
4 A 50,000 MT, USD 1 MN Titannium Dioxide Pigment Project.
5 A Project to produce rubber tires for cars, trucks,
agricultural equipment and mining equipment.
GAOQIAO PETROCHEMICAL COMPLEX
Gaoqiao is considering joint ventures to produce normal parafin
(50,000-70,000 MT) to expand production of ion exchange resin
(from 4,000 to 10,000 cubic meters); and to produce styrene
monomer (100,000 MT) and polystyrene (50,000 MT).
ANQING GENERAL PETROCHEMICAL WORKS
AGPW is constructing China's first catalytic splitting plant, a
RMB 2 billion investment. AGPW expects to complete it during
the 9th Five-Year Plan, 1996-2000. Anqing is also planning a
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50,000 MT acrylonitrite plant to be followed by a 50,000 MT
fiber project to process the acrylonitrite. Long range plans
call for AGPW to construct ABS, SBS and other resin plants.
E. COMPETITIVE SITUATION
1. Role of Imports
The Chinese Government maintains an import sUbstitution policy
to protect and develop domestic suppliers. To the greatest
extent possible, enterprises purchase domestic raw materials
and equipment. In order to approve imports of equipment, the
Chinese government must determine that China either does not
manufacture the product or does not have sufficient supplies.
Despite the protectionist pOlicies, all of the complexes have
imported equipment and technology.
2. Used Equipment
Used equipment imports do not enjoy a strong demand in this
market. Chinese contacts contend that purchases of used
equipment generally do not result in savings over the long term
because of the high cost of service and spare parts. Jinshan
imported one used production line from the U.S. to manufacture
polyester filament. In general, however, the plant has found
used equipment difficult to integrate with existing equipment.
3. U.S. Market Position and Share
The Chinese appreciate the quality of American products and
welcome contact with U.S. suppliers. The' united States is the
second largest foreign supplier (behind Japan) and commands
about 25 percent of the market for imported equipment and
technology in East China with roughly USD 25 million in annual
sales. The large U.S. chemical and petrochemical companies are
well known in East China. For example, several plants use
Lummus technology for their ethylene plants, UOP-Dupont
technology for aromatics, computers from Rosemont and
instrumentation from Foxboro.
4. Competitive Factors
Chinese businesspeople regard quality, reputation, visibility
and price as key factors in import decisions. They prefer to
deal with people they know and rely heavily on face to face
contact. Good "guanxi," i.e. personal relationships, are key
to successful business in China. both because Chinese disclose
information largely on an informal, one-on-one basis and
because many business decisions hinge on personal
relationships. Developing good "guanxi" can contribute to
larger market share and help U.S. companies to obtain leads on
plans and projects. For example, Yangzi Petrochemical receives
100 Japanese for every American businessperson. In the last
5
year they have also received nearly as many Germans and South
Koreans. As a result, German and Japanese companies have
performed most of Yangzi's engineering work and have supplied
most of the major equipment. In other cases, the strong
presence of Japanese companies has enabled them to hear about
sales leads and projects plans long before plans are firm
enough for pUblic dissemination. Frequently u.S. firms lack
visibility and prefer to operate via telephone or fax.
Early contact and good relations with the complex's technical
department and the design institute are as important as
developing good relationships with the purchasing department.
The technical department must determine that the foreign
technology or equipment is suitable for a given project before
the purchasing office (the foreign trade corporation or
division of the complex) can even meet officially with the
potential supplier. Once the technical people agree that the
foreign product is of sufficient and appropriate technology,
the supplier may discuss price and financing. Generally the
technical department and the design institute draft initial
project proposals. Once the Ministry of Chemical Industries or
SINOPEC approves the project, the design institute and the
technical departments carry out a feasibility study with input
from other departments including the planning and finance
departments. Technical seminars for the design and technical
departments are an excellent way to present the unique and
competitive aspects of a company's products.
Due to the importance of coordination with the design
institutes and technical departments, local sources note that
agents or distributors are not well-suited for this market.
The Chinese companies regard agents as only interested in the
next sale, not in long-term relationships. They also want to
be sold on the technical aspects of a company's products and
want to meet with the suppliers' engineers rather than outside
salespeople. Onecompanycomplained that u.S. companies do not
like to deal directly and rely too heavily on agents from Hong
Kong. To the enduser, the Hong Kong agent represents higher
commissions and indirect contact with the producer. In
contrast, Japanese companies visit often to make sure
previously installed equipment is running well, to discuss
areas of possible future cooperation and to maintain the
relationship.
Despite these complaints, well-qualified agents or
representatives from Hong Kong and increasingly, Taiwan, may be
in a good position to help new-to-market u.S. companies in East
China. An agent or representative in Asia can visit with
customers more frequently and may be able to provide
after-sales service and training at much less cost than working
directly out of the united States. Taiwan in particular is a
good source of agents for American firms. Taiwanese offer both
technological experience from Taiwan's own petrochemical
industry and linguistic f a m i l i a r i ~ y with East China.
6
Officials at each of the complexes mentioned that u.s. firms
are inflexible on price. Some contacts appreciate the more
straight-forward nature of American business practices
vis-a-vis Japanese. However, Americans may be considered
culturally insensitive if the seller did not consider the
customer's desire for some give and take and did not understand
the process of coming towards a mutually satisfactory
agreement. The Chinese business culture emphasizes negotiation
and "mutual benefit." Signing on too readily to the initial
offer and terms, particularly ones from a foreign company,
suggests the Chinese did not get the best deal.
It must be conceded that a major impediment to equipment sales
from the united states is the lack of concessionary financing.
~ u c h of the equipment sourced from other countries is financed
by soft loans. In a typical example, a consortium of French
companies won a USD 30 million contract for a recent SCIB
project despite the united states supporting the feasibility
study with a USD 600,000 grant from the Trade and Development
Program. The French will supply the equipment financed by a
French-Government 10 year interest-free loan with a 1 to 2
percent interest rate thereafter. Texaco and the Institute of
Gas Technology from the United states will supply USD 10
million in software and technology.
F. KEY CONTACTS
Mr. Xiang Zhong Fu
Director and President
China Jinshan Associated Trading Corporation
Tel: 86-21-794-0935
Fax: 86-21-794-2248
Jinshan Hotel
Jinshanwei Shanghai 200540 China
Mr. Zhao HongJie
Director, Foreign Affairs
China Jinshan Associated Trading Corporation
Tel: 86-21-794-1888
Fax: 86-21-794-0687
Jinshan Hotel
Jinshanwei Shanghai 200540 China
Mr. Qian Shouren
General Manager
Shanghai Gaoqiao Petrochemical International Trade Co.
TEL: 884-6482 x 8831
FAX: 884-6359, 884-6481
2908 PUdong Da Dao, Pudong Shanghai, 200129 China
Ms. Wang Shanjuan
Vice General Manager
TEL: 884-6482, 884-7636
FAX: 884-6359, 884-6481
Shanghai Gaoqiao Petrochemical International Trade Co.
2908 PUdong Da Dao, Pudong Shanghai, 200129 China
Mr. Liu Junan
General Manager
Nanjing Yangzi Petrochemical International Trading Company
Dachang District, Nanjing, Jiangsu Province, China
TEL: (025) 784329
TLX: 34158 YPCGH CN
FAX: (025) 791662
Mr. Li Sibin
Manager, Senior Engineer
Nanjing Yangzi Petrochemical International Trading Company,
Business Dept. No. 2
Dachang District, Nanjing, Jiangsu Province, China
TEL: (025) 784323
TLX: 34158 YPCGH CN
FAX: (025) 791662
Mr. Kong Linmei
Nanjing Yangzi Petrochemical International Trading Company,
Business Dept. No. 1
Dachang District, Nanjing, Jiangsu Province, China
TEL: (025) 784321, 783290
TLX: 34158 YPCGH CN
FAX: (025) 791662
Mr. Wang Shou Yuan
Vice General Manager
Jinling Petrochemical Import & Export corporation
Address: 78 Suo Jin Cun, Nanjing, 210042 China
TEL: (025) 504361
FAX: (025) 502925
Mr. Wu Jin Li
Director of Development
SINOPEC Jinling Petrochemical Corporation
Address: 78 Suo Jin Cun, Nanjing, China
TEL: (025) 654567
Mr. Xu yin Yao
ZPGW Shanghai Representative Office
Room 503, 33 Jiujiang Road, Shanghai 200002 China
TEL: 329-0352, 323-1869
Mr. Sheng Zhen Wei
~ r . Fen Chuan Wei
Anqing City Government, Shanghai Representative Office
#14 1670 Lane, Huaihai Zhong Road, Shanghai 200031 China
TEL: 4371033
Mr. Huang Wen Wei, General Manager
Corporation of Shanghai Chemical Industry
Foreign Economic and Technological Cooperation
110 Hankou Road, Shanghai, 200002 China
TEL: 321-7879 fax 321-6107 .
8
Ms. Shen Li Ping
Shanghai Chemical Industry Bureau
Director, Foreign Trade Office
110 Hankou LU, Shanghai 200002 China
TEL: 321-0902 fax 321-6107
Kang Zhiwei
General Manager, First Division
China National Technical Import/Export Corporation
Beijing Exhibition Center Hotel
135 xi Zhimenwai Street
Beijing, China
TEL: 8316633-5201
CNTIC has been responsiblefor large scale purchases and World
Bank projects
Sinopec International Corporation
Liaison Department Manager
NO.2, 5th District
Heping Li
Beijing, China
Tel: 4217744 ext 318
G. Trade Promotion Opportunities
The major trade show for the industry is the annual
International Chemical Industry Fair. The International
Chemical Industry Fair 1992 (ICIF '92) will be held August
18-23 in Beijing at the China International Exhibition Center.
The organizer is the International Exchange Center of the
Ministry of Chemical Industry. For further information,
contact Mr. Zhou Jianguo, telephone (861) 422-6622 ext. 3212 or
fax (861) 421-4052.
Companies may also advertise in the "shanghai Chemical
Industry," a journal published by the Shanghai Chemical
Industry Bureau. For further information, please contact the
Director of the Foreign Trade Office at the Bureau, Ms. Shen
Liping, tel: (8621) 321-0902, or fax (8621) 321-6107.
H. ADDENDUM
The following is an introduction to the petrochemical complexes
in the East China Consular District.
1 SHANGHAI PETROCHEMICAL COMPLEX:
Shanghai Petrochemical Complex (SPC), also known as Jinshan
Petrochemical, is a 12 square kilometer complex located south
of Shanghai at the Hangzhou Bay of the East China Sea. SPC
began operation in 1978 and has 64,000 employees. The Central
9
Government financed SPC'S first stage (1972-78) and loaned SPC
the funds for the second stage (1978-86). SPC itself financed
the RMB 35 billion third stage (1986-91) borrowing some funds
from foreign banks and raising the remainder through the sale
of domestic bonds. SPC is China's fifth largest corporation in
value of sales and is China's largest producer of polyester
fiber. Jinshan exported USD 28 million worth of chemicals in
1989 and USD 44 million in 1990.
Of the sixteen production units in SPC's first stage, seven
used Japanese equipment (including one using u.s. technology),
eight used Chinese equipment and one used German equipment. Of
the.ten units in the second and third stages, three employed
u.s. technology and Chinese.or third country equipment, only
one used u.s. equipment. Japanese and Italian export credits
and concessional loans funded equipment from those respective
countries for the remaining units from .
SPC'S ANNUAL PRODUCTION
Ethylene: (450,000 MT)
Polypropylene: (140,000 MT)
Low Density Polyethylene: (80,000 MT)
Polyester Chips: (100,000 MT)
Staples (90,000 MT)
Ethylene Glycol: (120,000 MT)
2. SHANGHAI GAOQIAO PETROCHEMICAL CORPORATION
Established in November 1981, Shanghai Gaoqiao Petrochemical
Corporation (Gaoqiao) covers an area of 312 hectares in the
Shanghai Pudong Economic Development Zone and has 22,000
employees. For several years Gaoqiao has been Shanghai's
number one exporting enterprise (USD 78 million in 1990). All
of Gaoqiao's primary production equipment is China-made. 1991
assets were RMB 1.1 billion. In 1990 the company also received
600 foreign visitors.
Gaoqiao has an annual crude oil processing capacity of 7.5
million metric tons (MMT) and is .integrated with 30 refining
units, 20 organic chemical units and a power generating
station. Gaoqiao recently completed a 2.5 MMT per year
atmospheric and vacuum distillation plant and support
facilities. A 50,000 MT per year polybutadienerubber unit, a
20,000 MT per year polyether unit and a 20,000 MT per year
propylene oxide unit are under construction.
Gaoqiao produces 300 products. The main products are gasoline,
kerosene, diesel oil, jet fuel, various brands of lUbricating
oil, wax, petroleum coke, asphalt, ethylbenzene, propylene
glycol, phenol, acetone, polybutadiene rubber, industrial
detergent, polyether, acrylic fiber, acrylonitrile, and
tertiary butanol.
10
In November 1991, Gaoqiao and CALTEX (A Texas-based corporation
formed by Chevron and Texaco) started a USD 2 million joint
venture to produce lUbricating oil for vehicles and ships.
Initial production will be 5,000 MT per year, increasing to
50,000 MT per year by 1995. Gaoqiao has signed an letter of
intent with Transworld Oil (USA) to establish an oil refining
plant, and is currently conducting a feasibility study on the
project. Gaoqiao also has joint ventures with German and Hong
Kong companies.
3. SHANGHAI CHEMICAL INDUSTRY BUREAU (SCIB)
The Shanghai Chemical Industry Bureau administers 146
industrial enterprises, of which 116 are state-owned. The
remaining 30 are smaller, collectively-owned enterprises. SCIB
also includes 16 independent design and research institutes.
There are 147,000 employees in the Bureau of which 11,300 (8%)
are technical personnel. In 1990, SCIB'S total industrial
output value was RMB 6 billion Yuan (USD 1.1 billion). SCIB
turned over 1.5 billion RMB (USD 0.3 billion) in profits and
taxes. Total assets are valued at RMB.3.1 billion. 1990 and
1991 exports reached USD 173 million and USD 210 million
..
SCIB has ten product divisions: chemical raw materials,
plastics, dyestuffs, pesticides, coatings and pigments, rubber
products, chemical fertilizers, chemical equipment, coking and
coal Chemistry, and chemical reagents. SCIB offers more than
6,000 products with 30,000 specifications. The main products
include: chemical fertilizers, pesticides, organic chemical raw
materials, acids and alkalies, inorganic salts, synthetic
resins,pigments, and chemical reagents.
Since 1983, SCIB has imported equipment and technology over USD
300 million including more than USD 50 million of American
equipment. six of the SCIB's ten joint ventures are with
American companies including: DuPont (pesticides); Cabot
(carbon black); and Union Carbide and Allied Signal (molecular
sieves). The Bureau is interested in additional relationships
with.the U.S. chemical industry.
4. YANGZI PETROCHEMICAL CORPORATION:
Yangzi Petrochemical (YPC) is SINOPEC's newest and one of its
largest complexes. YPC's development and construction has been
extremely rapid. The company was formed in September 1983.
Construction began in June of 1984 and finished in 1990. YPC
has more than 20,000 employees. The complex is composed of 10
major sets of production equipment. YPC has its own electric
plant and water supply to enable constant.operation. Crude oil
is piped directly from Shengli oilfield in Shandong Province.
YPC operates its own 10-wharf port facility and its own railway
depot and link to the Shanghai-Beijing railway line. In 1991
YPC had successful test runs on several of the production lines
installed in 1990 and 1991.
11
First phase projects initiated in 1987 included an ethylene
plant (300,000 MT annual capacity), a polyethylene plant
(140,000 MT), an ethylene glycol plant (200,000 MT) and an
atmospheric and vacuum distillation plant (3 million MT).
Second phase projects included an aromatics complex (450,000
MT), a purified terephthalic acid (PTA) plant (450,000 MT), an
acetic acid plant (70,000 MT) and a vacuum residue plant.
YPC has purchased equipment and technology licenses from a
number of u.S. companies. The ethylene plant uses Lummus
technology, the aromatics section uses UOP and Unicorp
equipment, .MTA uses Amoco technology, the urea plant uses
Chevron technology, the pilot plant for polypropylene signed an
agreement with Stubbs, Overbeck and Associates for engineering
and equipment, the delayed coking plant uses a Dresser pump.
In addition, YPC directly imports over USD 1 million per year
in catalysts and. spare parts from the united States.
with all their basic lines now operating successfully, YPC is
looking towards downstream products. The company welcomes
joint ventures in new product areas such as jet oil, chemical
fibers, PBT and SM. YPC is already producing the inputs for
these products.
5. JINLING PETROCHEMICAL CORPORATION:
Jinling Petrochemical Corporation (JPC) is located in northeast
Nanjing, along the Beijing-Shanghai Railway. It has 23,000
employees and assets of RMB 1.1 billion. In addition to
self-raised funds, it receives funds from SINOPEC and local
banks. JPC's exports reached USD 105 million worth of products
in 1989 and USD 107 million in 1990. JPC imports most of its
equipment from Japan, the united States, Canada and Western
Europe and imports crude oil from the Middle East. It has no
formal purchase or expansion plans.
6. ZHENHAI GENERAL PETROCHEMICAL WORKS
Zhenhai General Petrochemical Works (ZGPW) is north of Ningbo
in Zhejiang Province, on the coast of the East China Sea. ZGPW
has over 8,000 employees, of whom 20 percent are engineers and
technicians, onits 11 square kilometers. ZGPW exported USD 59
million worth of products in 1989 and USD 74 million in 1990.
ZGPW annually processes 3 million MT of crude oil and produces
300,000 MT of synthetic ammonia and 520,000 MT of urea. Other
products include: 90# Motor Gasoline, Regular Leaded Gasoline
for export, 1# Naphtha, 2# Lamp Kerosene, 0# Diesel oil for
export, 10# Building Asphalt and Sulphur.
During the EightnFive Year Period the company plans to invest
RMB 4.3 billion to develop more downstream production
facilities, relying on three sources of funding, ZGPW itself,
SINOPEC, and Zhejiang Province.
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7. ANQING GENERAL PETROCHEMICAL WORKS:
Anqing General Petrochemical Works (AGPW) is situated in
Anqing, Anhui Province. AGPW began operation in 1979 and now
employes 12,000 people on its 400 hectare site. Major
facilities include a crude oil refinery (3 million MT annual
processing capacity), a chemical fertilizer plant (300,000 MT
of synthetic ammonia and 520,000 MT of urea) and a thermal
power plant with an installed capacity of 150,000 KW.
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