Annual economic growth of 9% continues to put pressures on demand for petrochemicals. Backed by government measures to attract foreign investment, plant construction in China is expected to continue attracting overseas investments. Increasing petrochemical production has started exerting an influence on the international markets. As per estimates, domestic ethylene production in 2004 in China was 6.2 million tons as against demand estimates of 16.5 million tons. To compensate for the ethylene shortage, Chian continues to import, but at the same time, has toughened antidumping measures for such imports - part of China's policy of boosting domestic production of chemicals, in which it has sought investment from abroad. Since 1997, the government has conducted 41 dumping investigations, 33 of which involved chemicals.
The US$2.9 billion joint venture equally funded by BASF and SINOPEC, with annual production of ethylene pegged at 600,000 is one of the largest plants in Asia. It can produce a total of 1.7 million tpa of chemicals. In 2010, 10% of BASF's sales and profits will be earned in China.
British oil major BP's plant producing 900,000 tpa is to be located in Shanghai.
Dutch-British energy firm Royal Dutch/Shell will start operating a plant in Canton Province within this year, producing 800,000 tons a year.
U.S. oil major Exxon Mobil Corp. plans to build a large plant in Fujian Province in 2007.
Japan's Mitsubishi Chemical Corp. is constructing a plant to produce purified terephthalic acid in Zhejiang Province.
Tosoh Corp. is building a polyvinyl chloride (PVC) plant in Canton.
30-Nov-05 
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