Shanghai Jinshan District Government announced today that Shanghai Chemical Zone located in Caojing Town of Jinshan District, will make more effort to create business leads for more companies and invest more in the development of fine chemicals, as well as integrating the upper, middle and lower stream products of “oil refining, petrochemicals and fine chemicals”.

The project, capable of an annual production of 900,000 tons of ethylene, is a joint effort of BP and China Petroleum & Chemical Corporation (China Petrol). The tetrahydrofuran (氢呋喃) project, invested in by BASF, will be completed next year.  The MDI and TDI projects -joint investment of BASF, Huntsman Corporation, China Petrol and Huayi Company- will be ready for operation in 2006 as planned.  Some HDI and MMDI projects have already been inaugurated one after another.  As a result, a complete product chain composed of upper stream products, such as ethylene cracking (乙烯裂解), and middle and lower stream products, such as isocyanate and polycarbonate, have taken form.

Also settled down in the Chemical Zone is a German company Degussa, and Shanghai 3F New Materials Co., Ltd.

Eight years ago, Shanghai municipal government formally decided to build a world class Chemical Zone in Caojing Town of Jinshan District.  The municipal leaders pointed out, as a large industrial city and economic center, Shanghai must be supported by a large scale petrochemical deep-processing industry.  So Shanghai must press on to construct a robust petrochemical deep-processing industry, characterized by high-grade, high-precision advanced technology, which would be the new point of economic growth for Shanghai.