Chemical industry of chongqing status of Chemical Industry in Chongqing

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1. Status of Chemical Industry in Chongqing
Chemical industry is one of pillar industries of Chongqing. With the requirements for integrated development of chemical industry, Chongqing Chemical Industry Park (CCIP) was established in 2003 with the approval of the People’s Government of Chongqing Municipality, which covers a planned area of 31.3 km2. It will mainly develop three major industries i.e. natural gas chemical industry, chlorine alkali chemical industry and petroleum chemical industry, and six major product chains i.e. natural gas methanol, natural gas acetic acid, natural gas acetylene, chloride and alkali, fine chemical industry, and new materials.
Chongqing Municipality is one of China’s major production bases of natural gas, and with its rich resources of natural gas, it has become the biggest and the most advanced base of natural gas chemical industry, Among which there are the biggest plants of acetylene, methanol, acetic acid, vinyl acetate, polyvinyl alcohol, and acetate in China. Plants of hydrocyanic acid, phosphorous, urea, aniline are most advanced nationally and some plants have already reached international advanced level. Up to now, Chongqing is the biggest and most advanced base of natural gas chemical industry with the longest history and the most complete varieties of products.
By 2007, more than 30 large world-famous and domestically famous enterprises such as China National Petroleum Corporation (CNPC), China Petrochemical Corporation, BP Company of UK, Mitsubishi Gas Chemical Company, German Degussa, Kingboard Chemical Holdings Ltd, Eastern Communications U.S.A, Yunnan Yuntianhua Co.,Chongqing Polycomp International Corp., Chongqing Global Petroleum Chemical Co., German Linder Gas Co., Ltd., and General Water Company of China Environment Protection, Hanwha had made huge investment to build plants in the park with a contractual investment reaching RMB 22 billion. It is expected that a sales income of RMB 30 billion will be realized in 2010, RMB 50 billion in 2015, and RMB 80 billion in 2020. By then the park will be turned into a biggest integrated chemical industry base at the upper reaches of Yangtze River, a new energy resources product base and a model park of cyclic economy of state level.
2. Rich Resources for Chemical Industry
Chongqing is rich with natural gas and rock salt resources, with a total area of natural gas resources of more than 30000 km2, and a reserve of 2000 m3. The explored reserves of natural gas is about 370 billion m3, and annual production volume takes up one fourth of the country’s total; Annual purification capacity is 8 billion m3, accounting for 30% of the annual land purification capacity of natural gas in China. At present, China Petrochemical Corporation and China National Petroleum Corporation (CNPC) have strengthened their exploration and exploitation of natural gas in the surrounding Chuandong region of Chongqing, where the explored reserves of Puguang gas field will reach 50 billion m3, and annual production capacity will reach 12 billion m3 of purified gas. China Petrochemical Corporation and China National Petroleum Corporation (CNPC) will provide Chongqing with 9 billion m3 of natural gas in 2010.
The coal and gas industry play an important role in Chongqing. Coal resource, covering 33 districts of Chongqing, was estimated to be 3.0 billion ton by the end of 2003 and expected to be 10.0 billion ton in the future. There is also significant gas resource of 70.3 billion m3 from the coal. 58 billion m3 of it from national key gas base.
China National Petroleum Corporation (CNPC) has planned to build an oil pipeline from Burma to Chongqing via Kunming, and an ethylene project of refining plant of 8 million ton/year to match 10 million ton/year and downstream products, which will bring about a new opportunity for development of large petrochemical industry in Chongqing.
By the end of 2005, the State Development and Reform Commission already granted China National Petroleum Corporation (CNPC) to build an ethylene plant with an annual capacity of 800000 ton, and provide the following five kinds of raw materials to Chongqing Chemical Industry Park: 13000 ton of bisphenol A, 90,000 ton of toluene, acryl acid of 50,000 ton/220,000 ton of acrylic ester, 60000 ton of phenol/70000 ton of acetone, 50,000 ton of isooctane/130,000 ton of N-Butane .
3. Natural Gas & Petrochemical Industry Plan of Chongqing Municipality during the “11th Five-Year”
Chongqing will give full play to its advantages in chemical industry, and strengthen cooperation with large enterprise group with internationally advanced technology level, vigorously develop natural gas chemical industry, petrochemical industry, chemical industry of chloride and alkali and fine chemical industry, and develop products toward multi-polarization and series direction.
During the “11th five-year”, the natural gas chemical industry of Chongqing will realize breakthrough. With the intervention of multi-element capital, the investment in chemical industry will be greatly increased, roughly building a framework of an integrated chemical industry base in the upper reaches of Yangtze River. Continue to greatly develop natural gas chemical industry, strive to optimize and upgrade fine chemical industry, and well build ethylene downstream chemical industry, and develop an integrated chemical industry. Currently, it will focus on the 11 major chemical products i.e. acetylene, methanol, biochemical industry, ethylene downstream chemical industry, and petrochemical industry.
4. Projects of Major Introduction

  • 1.5 million ton of PTA/year

  • 600000 ton PET/year

  • 60000 ton of PBT/year

  • 130000 ton of TDI/year

  • 100000 ton of polycarbonate/year

  • 500000 ton of PVC/year

  • 150000 ton of epoxy propane/year

  • 100000 ton of polyether/year

  • 60000 ton of MMA/year

  • 40000 ton of PMMA

  • 30000 ton of super-water-absorbent resin/year

  • 40000 ton of special ethoxyline resin/year

  • 20000 ton of special epoxy resin/year

  • 20000 ton of Methyl Isobutyl Ketone /year

  • 30000 ton of acrylate copolymerical emulsion/year

  • 100000 ton of plasticizer DOP /year

  • acetic anhydride, vinegar tablet

  • organic silicon series products

  • vinyl-vinyl acetate copolymer

  • Polyvinyl Butyral

  • PVFM

  • Caprolactam

  • PAM

  • ethanol amine

Automotive Industry


Auto industry is the primary pillar industry in Chongqing, and the most powerful economic growth point. According to statistics in 2007, Chongqing automobile industry (including vehicles and parts, motorcycles and the parts) realized industrial output value of RMB 177 billion, increase 31% compared same period last year, accounting for 33% of the city's total. The sector employed 297,000 labour personnel, accounting for 15% of the city’s total. In 2007, the sector produced and sold 1,003,300 units of vehicles, increasing 27% compared same period last year. Chongqing’s output ranked fourth in the overall China.

In recent years, the automobile industry in Chongqing has been featured with “three-high two-rapid”: the growth of both car and commercial vehicle production volume higher than the national level, the growth of economic indicator higher than growth of physical goods production. Vehicle export growth developed rapidly, and auto parts industry developed rapidly. Automotive industry continues to play as the engine of Chongqing Municipality.

Vehicle Production of Chongqing Municipality in Recent Years (10,000 vehicles)

(Vehicle made in Chongqing only)

Leading Enterprises

Mini-cars Manufacturer: ChangAn Group, Dongfeng Yu An

Car Manufacturer: ChangAn Group, ChangAn Ford Mazda, ChangAn Suzuki, LiFan automobile

Bus Manufacturer: HengTong , AnKai, ChuanJiang

Commercial vehicle: Chang’ An Kua Yue, QingLing , Chongqing Heavy Vehicle Group, Tiema group, Iveco

Special purpose vehicle: Dima, JinGuan, NaiDe

Development Goals

By 2010, the production and sales volume will reach 1,500,000 units, including 1,200,000 units of passenger car. The sales income will reach RMB 135 billion; production and sales volume constitute 15% of the country’s total output. Efforts will be made to expand the proportion of cars, from existing 30% to 70%. By 2020, the complete vehicle production and sales volume will reach 2,600,000 units, generating sales income of RMB 200 billion. Meanwhile, efforts will be made to establish a technology research and development system with core competitiveness, to allow the proportion of own- intellectual- property- righted products exceeding 80% of the city’s total output.
Active Foreign Trade

With the enhancement of Chongqing’ status in auto industry, many major global auto-parts manufacturers are attracted to investment Chongqing. Currently, Visteon, TRW, Johnson Controls, LEAR, Tenneco, Cummins, TI, DENSO, Mahler, POSCO, Siemens VDO, GKN, Exedy, GITI, ALESCO, Meridian and Delphi have all set up plant in Chongqing. Their products are not only supplying to the domestic market, but supplying into global supply chain of their parent companies. So far, the automotive industry in Chongqing has absorbed foreign capital of over USD 1 billion.

Chongqing’s export in automobiles and auto parts has seen rapid growth in recent years. In 2007, the automobile industry in Chongqing Municipality exported 34,500 units of vehicles, increasing 1.89 times over last year. The exporting value was USD 310 million, increasing 1.37 times. The auto parts exports were USD 93.66mln, increasing 78.9%. Auto parts manufacturer such as Qingling gearbox and ChaoLi air conditioning have become supplier to the US General Motors Corporation and other international automobile giants.

On August 17, 2006, Chongqing and Changchun, Taizhou, Shanghai, Wuhan, Xiamen, Wuhu and Tianjin became the first batch of export bases for automobiles and auto parts.

Motorcycle Industry

Chongqing is China's largest motorcycle production and export base, the market share of Chongqing’s motorcycle and motorcycle engine across the country were 35%, and over 50% respectively. Currently, there are 30 enterprises producing complete motorcycles, and there are 530 sized motorcycle parts enterprises, of which 63 enterprises has sales income over RMB 100 mln.

The city has formed production capacity of 8 million complete vehicles and 10 million engines. In 2007, the motorcycle production volume was 8.64 million units. Motorcycle and engine production volume have been ranked No.1 of the country for 8 consecutive years. Motorcycle exports volume have been ranked No.1 of the country for 7 consecutive years. JiaLing, JianShe, ZongShen, LiFan and LONCIN ranked top 10 of the motorcycle enterprises nationwide. Local supplying rate of motorcycle parts and accessories exceeded over 90%. The production volume of some enterprises such as ZhiCheng Cylinder Head, JieLi Wheel, YuJiang Die Casting, YaoYong Absorber and QiuTian Gear were among the highest level in the world. The future development plan of motorcycle industry indicates that this sector will transform from the "quantitative expansion" to "quality and effectiveness”, to improve the competitive edge for building the “Capital of Motorcycles”. While strengthening the development of large displacement motorcycles and engines, efforts will be made to improve the economic performance, security, environmental protection and reliability, to enhance the capability of independent innovation, to create a high quality, more varieties and wide series product range from 35-1500 cc, to forge 3-5 international consortiums with a global competitiveness, and to nurture 3 -5 international famous brands
Investment Guide

■ Design and manufacture of automobile and motorcycle dies and fixtures.

■ Manufacture of casting and forging parts used for automobiles and motorcycles.

■ Manufacture of Automobile and motorcycles.

■ Manufacture of key automobile parts: Brake assembly, driving axle assembly, transmission, diesel fuel pump, diesel turbocharger, the emission control devices for diesel-engine vehicles, filters (for air, oil and fuel), CV joints, shock absorbers, instruments combination and the special high-strength fasteners.

Manufacture of systems: Electronically controlled fuel injection electronically controlled anti-lock braking, airbag and other automotive electronic equipment. Manufacturing of key motorcycle components: carburetor, magneto, starter motor and disc brakes.

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