China's largest integrated chemicals firm - Shanghai Petrochemical, plans to expand its refinery and expand ethylene capacity. Subject to state approval, Shanghai Petrochemical will add 450000 tons of ethylene capacity. The company expects to process around 10 mln tons of crude this year, up from 9 million in 2007, and surpass previous record of nearly 970,000 tons of ethylene after finishing maintenance last year.
Central government nod is awaited to upgrade an old 150000 ton capacity ethylene unit to 600,000 tons, at an investment of less than 10 billion yuan. Approximately, 3 billion yuan will be spent on upgrading and replacing petrochemical equipment this year.