Foreign investors bullish on this trillion-RMB industry cluster in Guangdong
Time：2023-03-30 09:51:10
Source：newsgd.com
In the first quarter of this year, giant foreign enterprises have planned for their industrial layout in the cluster of the green petrochemical industry in Guangdong. This is a clear vote of confidence in China and Guangdong to achieve high-quality development in the sector.
On March 27, a preliminary investment contract was officially signed in Beijing for the CNOOC and Shell Petrochemicals Company Limited (CSPC) Huizhou Phase III Ethylene Project,with a total investment of over 50 billion.
The People's Government of Guangdong Province signed an MOU with the Saudi Arabian Oil Company (Saudi Aramco) on March 26. As the world's largest crude oil producer and a world-leading refining and chemical company, Saudi Aramco will work more closely with Guangdong in petrochemicals, hydrogen energy, ammonia energy, and other areas, in an effort to assist Guangdong in promoting a more modernized and sustainable petrochemical industry.
A month earlier, ExxonMobil Huizhou Ethylene Project made great headway, with the completion of the hoisting of the heavy tower. Meanwhile, the construction of an R&D centre officially kicked off in Huizhou's Daya Bay. It will be ExxonMobil's first comprehensive R&D centre outside its North American headquarters, equipped with pilot plants and integrating product R&D and process development.
Industry and market boost confidence of foreign investors
"The petrochemical industry is characterized by clustered development. CSPC's continued investment and putting Phase I to Phase III into operation speak volumes about its faith in the high-quality development of the green petrochemical sector in Guangdong and China overall." Ji Hongbing, a member of the Chemical Industry and Engineering Society of China (IESC) and vice president of the Guangdong Petroleum and Chemical Industry Association (GDPCIA), believes that such projects will have a long-lasting exemplary effect.
As a result of the steady stream of major foreign investment projects that have landed and started operation, more and more global enterprises began to recognize Guangdong's comprehensive industrial chain and supply chain, as well as its massive consumer market, where they can attain progress and benefits.
Global competition helps to extend the industrial chain
At present, Guangdong's green petrochemical industry has emerged as a trillion-RMB industry cluster with five major petrochemical bases, including Daya Bay in Huizhou, Zhanjiang, Maoming, Guangzhou, and Jieyang Dananhai.
Currently, the province has four major foreign investment projects under construction with an investment of over 5 billion USD, including the BASF (Guangdong) Integrated Base Project, the ExxonMobil Huizhou Ethylene Project, the CSPC Huizhou Phase III Ethylene Project, and the Oriental Energy Alkane Resources Comprehensive Utilization Phase I Project.
In addition, among the key construction projects planned for 2023 announced by the Guangdong Provincial Development and Reform Commission, 14 are major petrochemical projects with a total investment of 294.5 billion RMB.
Ji Hongbing observed that, as of now, large projects of CSPC, ExxonMobil, and BASF focus on the refining-petrochemical integration segment. As these projects are put into operation and achieve differentiation, the new products, methods, and technologies emerging in the process will see more widespread application and promotion in the market.
"Despite Guangdong's status as a manufacturing hub of petrochemical products at home and abroad, it suffered from the shortage of R&D bases and core technologies. The province should enhance its creative capacity in building the upstream and downstream industry chain, striving to shift from a "manufacturing centre" to an "innovation centre". It is also necessary to establish a healthy industrial ecosystem, and industrial chains shall be consolidated, supplemented, and extended faster through the competition between local enterprises and multinational giants." Ji Hongbing suggested.
Ji Hongbing holds that Guangdong needs to introduce more premium downstream projects in the future to boost the high-quality development of its green petrochemical industry and speed up the establishment of a modern industrial system, with major projects as a demonstration.
