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China's ethylene production capacity will increase by 10.58 million tons in five years from 2006 to 2010, up about 140 percent, according to the mid and long-term development program for ethylene industry.

 

The program was approved by the State Council, or the central government, in January and recently published by the National Development and Reform Commission (NDRC).

 

The program calls for China to build seven major ethylene projects including the Nanhai Petrochemical Complex with a combined production capacity of 6.2 million tons.

 

Three ethylene industrial zones in the Yangtze River Delta, the Bohai Bay region in north China and the Pearl River Delta in south China, will be formed, with the production capacity making up over 60 percent of the country's total.

 

Large ethylene production bases will also be built in central and west China including Xinjiang, Gansu, Sichuan and Hubei.

 

The reconstruction and expansion of existing ethylene enterprises will contribute an additional production capacity of 4.38 million tons, according to the program.

 

Domestic firms are inspired to go overseas for expanding sources in order to make up the shortage of raw materials for ethylene production. The program also says the new ethylene projects should be built close to the ten, million-ton crude oil processing bases.

 

As for the establishment of Sino-foreign ethylene projects, foreign investors should own advanced technology or provide the raw materials, while the Chinese partners should hold the majority of shares in the joint ventures.

 

(Xinhua News Agency March 27, 2006)