【Haichuan Chemical Salary Updates】Guangdong’s petrochemical industry ranks second in the country in terms of scale

Jiangsu, which has for many consecutive years been the second-largest chemical-producing province in the country, shut down 1,200 low-end and outdated chemical enterprises in 2018. In 2019, another 448 petrochemical enterprises of a certain scale were closed down there; the province’s revenue from its core business activities that year amounted to 1.19 trillion yuan, a 4.25% decline compared to the previous year (1.24 trillion yuan in 2018), pushing it to third place. Shandong, which has been the largest chemical-producing province in the country for 28 consecutive years, has seen 1,500 chemical enterprises and over 100 chemical parks shut down in recent years as part of efforts to shift to new forms of energy and to transform the chemical industry. In 2019, the provincial petrochemical enterprises with a certain scale generated revenue of 1.88 trillion yuan, a 46% decline compared to the previous year (3.48 trillion yuan in 2018); yet its scale of operations remains the largest in the country. In 2019, the main revenue of petrochemical enterprises above a certain scale in Zhejiang amounted to 1.08 trillion yuan, representing a year-on-year increase of 4.5% (on a comparable basis), keeping the province in fourth place nationwide. In 2019, amid ongoing downward pressure on the economy, an increasing number of uncertainties, and a more severe and complex domestic and international environment, China’s petrochemical industry achieved operating revenue of 12.3 trillion yuan, representing a 1.3% increase on a year-on-year basis ； Total profit amounted to 668.37 billion yuan, a decrease of 14.9% ； The total value of imports and exports was 722.2 billion US dollars, a decrease of 2.8%.

Since there is no oil produced on the land in Guangdong, how did it develop into a major province in the petrochemical industry? “Guangdong has numerous deep-water ports along the coast, giving it natural advantages for the development of the petrochemical industry. Its developed economy coupled with a shortage of energy are also key reasons for the concentration of the petrochemical industry in this region. ”Lin Jiang, deputy director of the Center for Hong Kong, Macao and Pearl River Delta Studies at Sun Yat-sen University, pointed out that petrochemical companies invest in Guangdong because they take market factors into account. Guangdong boasts well-developed logistics and production infrastructure; it is connected to the domestic market, and as an important node on the Maritime Silk Road, it can also reach the Southeast Asian market, making it an ideal location for such investments. Data from the industry and information technology department of Guangdong Province show that the province currently has an oil refining capacity of 70 million tons per year (of which 20 million tons per year is in Huizhou), and an ethylene production capacity of 3.37 million tons per year ； In 2019, petrochemical enterprises above a certain scale in that province generated revenue of 1,521.798 billion yuan, with their added value exceeding 400 billion yuan for the first time. With the completion and operation of the aforementioned projects, the province’s refining capacity will exceed 100 million tons, making it the second province after Shandong to have a primary processing capacity of over 100 million tons ； At the same time, the scale of its petrochemical industry operations will reach 2 trillion yuan, serving as an important pillar for Guangdong’s economy worth 10 trillion yuan.

Guangdong possesses all the conditions for the substantial development of the petrochemical industry, especially in terms of internationalization.

There is another condition: to accept Middle Eastern crude oil, it has to be the closest one