Forty Chemical Processing Industry Projects in China with Engineering, Construction Firms Set to Kick Off in 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is tracking 40 Chemical Processing Industry (CPI) projects in China scheduled to begin construction during 2008 in which engineering and construction (E&C) services have been identified. The total investment value (TIV) for the projects is estimated at $7.75 billion. A majority of the E&C firms associated with these projects are based in China, such as East China Engineering & Technology Company Limited (Hefei, China), Chengda Engineering Corporation of China (Chengdu, China), and China Tianchen Chemical Engineering Company (Tianjin, China); however, there are other projects that have enlisted international firms, such as Technip, ABB Lummus and Aker Kvaerner. Some of these international E&C firms will utilize offices already established in China, but all will lean on their European headquarters to execute and complete the projects.

China's chemical industry is reaching out to the world for the technology and experience to increasingly grow its infrastructure to produce chemicals for domestic use as well as for exports. In this decade, China has rarely committed to anything less than world-scale production units. To construct plants of this magnitude and varying products, international firms with the technology, experience and know-how are required to complete these gargantuan complexes. International licensors are also being called upon, such as Dow, Univation, ABB Lummus and INEOS to license and sell their process technology.

Petrochemicals, methanol and fertilizer chemicals rank as the largest and most numerous types of CPI projects to be constructed in 2008. China is increasing its methanol capacity, utilizing domestic coal-to-chemical process technology. This also flows over into the production of urea and ammonia for fertilizer.

Sichuan and Liaoning provinces will receive the largest investment with $1.165 billion and $1 billion to be invested, respectively. In Sichuan, construction will begin this year on a 600,000-metric-ton-per-year purified terephthalic acid plant ($260 million), an 800,000-metric-ton-per-year ethylene plant ($800 million), a 200,000-metric-ton-per-year ammonia plant ($40 million), and a 20,000-metric-ton-per-year polyformaldehyde plant ($65 million). In Liaoning Province, an 800,000-metric-ton-per-year ethylene plant ($800 million) and a 300,000-metric-ton-per-year high-density polyethylene plant ($200 million) will be constructed this year.

Guizhou Province has six projects set to be constructed this year totaling $675 million in investments. Guizhou Jinchi Chemical Company Limited will construct a complex to produce methanol, ammonia, urea and compound fertilizers. A total investment of $575 million, the lion's share for this province, will be needed. Keruiyi Industry Company Limited will build a plant to produce polyvinyl chloride and caustic soda with a required investment of $100 million.

As China's industrial engine continues to run at full speed, more international firms and companies will be needed to help sustain the growth. China is currently in its 11th Five-Year Plan and plans to reach a GDP of $3.6 trillion in 2010, up from $2.5 trillion in 2005. One of the major growth areas that China is focusing on is its CPI. This is an industry that will flow into processing other chemicals and is the precursor for the manufacturing of plastics, fibers, packaging, inks, dyes, paints, agriculture, automobile manufacturing, fuels and the construction sector.

Industrial Info Resources (IIR) is the leading marketing information services company for the industrial process, heavy manufacturing and energy-related markets throughout the world. Celebrating its 25th anniversary, IIR provides accurate and timely intelligence featuring plant and project information databases, focused market databases, industry forecasting, key industry contacts, industry and territorial map products, direct marketing services and applications, and daily industry news.