Chemical Industry Cluster

Chemical industry is one of the backbone industries in Yangzhou . After many years' development, its industrial structure, product structure and technical structure are increasingly optimized, and initially form industrial chains of crude oil exploitation ¡ú oil refining ¡ú polypropylene, PX ¡ú PTA ¡ú polyester, chlor-alkali ¡ú chlorobeniene, and nitrobenzene ¡ú synthetic pyrethroid pesticide.

1. Analysis of existing circumstance for chemical industry in Yangzhou City

By the end of 2003, there were 139 enterprises with large-scope of production with gross production output at current price of nearly 15.6 billion Yuan. The category of products is all complete and variety of products is abundant. Products of this industry include more than tens of major categories and nearly 200 different varieties involving oil refining, petrifying, polyester, chemical and biological pesticide and so on, among which polyester and synthetic pyrethroid are especially well-known at home and abroad. In 2003, the output of main products is: 224,000 ton of crude processing, 316,200 ton of sulfuricacid (convert to 100%), 81,000 ton of sodium hydroxide (convert to 100%), 22,000 ton of agrochemical (convert to pure amount), 8746 ton of chemical pesticide (convert to pure amount), 50,000 ton of para(ortho)-nitrochlorobenzene, 20,000 ton of dichlorobenzene, 1240 ton of coloring agent, 7000 ton of beaded paint, and 10,000 ton of various accessory ingredient.

Chemical industry in our city has already formed certain comparative advantage and industrial features, which are mainly embodied as follow:

1). Polyester fiber

Yizheng Chemical Fiber Co. Ltd. of China Petroleum & Chemical Corporation is the largest modernized chemical fiber and chemical fiber materials production base in China . It is also the fourth largest polyester producer in the world. The company mainly engages in production and sales of polyester pellet, terylene fiber and PTA. By the end of 2003, the company has already possessed capability of annually producing 1.31 million ton of polyester polymerism, 858,000 ton of PTA, 188,000 ton of bottle slice solid phase polycondensation, 781,000 ton of terylene fiber sprinning, and 105,000 ton of enhanced elasticity.

2). Chemical pesticide

(1). Yangnong Group is a new type bionic pesticide¡ªsynthetic pyrethroid production base which has the largest scale and the most advanced production level in China . The group has formed product structure of ¡°Regard pesticide as its leading products, regard pyrethroid as its distinctive products, and regard chlor-alkali as its foundamental products¡±. Pesticide products include pyridaben, hexaflumuron, imidacloprid, acetamiprid, dicofol and so on. Pyrethroid products include two big series of products for agricultural and sanitary use and more than 20 varieties with annual production capability of 2000 ton, among which the market share of pyrethroid products for sanitary use reaches 60%. Chlor-alkali products include para(ortho)-nitrochlorobenzene, dichlorobenzene and so on. The group has set up a post-doctor working station and a chemical engineering and design academy with qualification of Class B. Its main products all possess autonomous intellectual poverty rights. The group invested and set up pyrethroid refined chemical products and chemical intermediate production base in Yangzhou (Yizheng) Chemical Industrial Park with total investment of 1.5 billion Yuan, among which the first-stage investment reached 300 million Yuan. The project was put into production in February 2004.

(2). Changqing Agricultural and Chemical Co. Ltd. is a medium chemical engineering enterprise mainly engages in production of pesticide and chemical engineering. The enterprise can annual produce 1000 ton of technical grade and 10,000 ton of preparation products. Its main products include tricyclazole, buprofezin, compound tricyclazole, fluoroglycofen, clomazone, bormoxynil octanoate and so on.

3). Petrochemical industry

Yangzhou Petrochemical Plant Co. Ltd. is a new type petrochemical enterprise integrating oil refining, chemical engineering and chemical fiber. The company now has 5 sets of production plants. Its main products include compound short-fiber, hexanediamine piperidine, light stabilizer and so on.

4). Chinlon curtain cloth

Jiangsu Qunfa Chemical Engineering Co. Ltd mainly produces rubber reinforcement chinlon-6 curtain cloth with annual production capability of 20,000 ton. Main index of the product ranks the third place in China . In addition, the company also produces sodium dimethyl m-phthalate-5-sulfonate, glycol ester, trimethyl phosphate, ethyl ester, rubber accelerator and other refined chemical products.

5). Refined chemistry

(1). Dalian Chemical Engineering (Jiangsu) Company is a sole investment enterprise of Dalian Chemical Engineering Co. Ltd under Taiwan Changchun Group with registered capital of 30 million US dollar. Total investment of the project is 90 million US dollar. The project at the first stage is planned to reach production capacity of annual producing 30,000 ton of 1-4 butanediol, 30,000 ton of EVA emulsion and Polytetramethylene ether glycol. The project at the first stage was tested and put into production by the end of 2003. After complete of the first stage project, the company can annually add sales income of 1 billion Yuan. The second stage of the project is planned to expand its production of annually producing 60,000 ton of EVA emulsion and 40,000 ton of 1-4 butanediol, and newly build production lines with annually production capacity of 54,000 ton of allyl alcohol, 80,000 ton of vinyl acetate, and 10,000 ton of polytetramethylene ether glycol.

(2). Yangzhou Hualun Chemical Engineering Co. Ltd. has high-class solvent devices which can annually produce 5000 ton of propylene glycol ether series, solvent devices which can annually produce 100,000 ton of arene series with high boiling point, equipments which can annually produce 6000 ton of durene, equipments which can annually produce 6000 ton of petronaphthalene and methylnaphthalene, and equipments which can annually produce 15,000 cellosolve and cellosolve acetate. The market share of its products reaches over 50% domestically.

(3). Jiangsu Huaao Paint & Chemiacal Co., Ltd. mainly produces weather resistance external wall paint, internal and external wall emulsion paint with environmental protection, PVC-anti-stone-bumping sealing paint for vehicle bottom, mental anti-corrosive paint, woodenware paint and so on.

(4). Yangzhou Gaokang Dyes Chemical Engineering Co. Ltd. mainly produces dyes of cresidine sulfoacid series and intermediates with annual production of 1000 ton of dyes and 2500 ton of intermediates. Market share of its products reaches more than 90% domestically.

(5). The annual production capability of sulfuric acid in Yangzhou Xinye Chemical Industry Co. Ltd. is 300,000 ton.

2. Analysis of advantageous conditions for developing chemical industry in Yangzhou City

According to developing orientation of constructing petrochemical industry base with characteristics of internationalization, modernization and comprehension, Yangzhou (Yizheng) Chemical Industrial Park possesses the following five advantages:

1). Predominant regional conditions and developed traffic network. Yangzhou (Yizheng) Chemical Industrial Park locates in the Yangtze Delt region which has the most developed economy, the most active market and the most forceful development in China . This area is an important traffic hinge between Nanjing and Shanghai metropolitan circles, which connects South Jiangsu and North Jiangsu province and links up coastal areas with inland areas. The area enjoys a wide market hinterland so as to provide reliable market assurance for developing petrochemical industry. Waterfront of Yangtze River within Yangzhou City is over 80 km . The water is deep, surface of River is broad, and waterfront is stable. The exploited waterfront available is about 40 km .

Yangzhou locates near Yangtze River and the sea. It possesses developed traffic network including highway, railway, waterway, oil channel, gas road and so on. In the aspect of highway, there are Beijing to Shanghai Expressway, Nanjing to Nantong Expressway, Shanghai to Nanjing Expressway, and high-grade highway along Yangtze River . Jiangyin Yangtze River Bridge and Nanjing No.2 Yangtze River Bridge and Runyang Yangtze River Bridge link up the north and south of China . In the aspect of railway, after completion of Xinchang Railway and Ningqi Railway, accompanied by construction of Nanjing to Xi'an Railway, the new transcontinental railway of Qidong¡ªYangzhou-Nanjing¡ªXi'an¡ªRotterdam in Holland is about to be open to traffic. The private leased railway of dangerous chemical articles of Yangnong Group leading to the Park is now under construction. These railways constitute crisscross and convenient landway traffic network. In the aspect of waterway, Beijing-Hangzhou Grand Canal runs through north and south of China and brings great convenience to water carriage of inland water. Yangzhou Port can cover the hinterland of North Jiangsu . Seagoing vessels with 50,000 tonner and container ship of the fourth generation can navigate the 360-km-long sea-route of Yangtze River beneath Nanjing Port throughout the year. In the aspect of oil channel, Yizheng city is the junction of Luning oil pipeline (from Shangdong Province to Nanjing ) and Yongning oil pipeline (from Daxie Island in Ningbo to Nanjing ). In addition, Oil dock of Nanjing Port is also build in Yizheng City . In the aspect of gas road, Guojiangmen Station of natural gas transmission from west to east China is set up inside of Yizheng City . Therefore, designing, developing and constructing Yangzhou (Yizheng) Chemical Industrial Park is rich in natural resources of regional advantages.

2). Good infrastructures. In order to create good investment environment, in accordance with principles of ¡°Layouting for one times, carrying out step by step, concentrating on development and reasonable arrangement¡±, Yangzhou (Yizheng) Chemical Industrial Park is now fully pushing forward constructions of public works such as thermoelectricity, water supply, gas supply, sewage disposal and so on, practically strengthen capability of the Park to bear petrochemical industrial centralization, and strive to realize intensiveness of investment and maximization of efficiency.

3). Advantage of accessory resources. Yangzhou (Yizheng) Chemical Industrial Park lies between the two national chemical industrial bases of Shanghai and Nanjing . The park locates in the east of Nanjing Yangzi, Yangba, Jinling, Nanhua, Yihua and Nanjing Chemical Industrial Park which is now under programming and construction. The park is in the west of Shanghai Chemical Industrial Park which is the Asian largest chemical industrial base, Yangtze River International Chemical Industrial Park , and Nantong , Changzhou , Zhenjiang , Taixin Refined Chemical Zone. The accessory industry advantages in the upper and down stream of Yangtze River is so clear that the park can easily receive industrial radiation and extend its industrial chains.

4). Abundant industrial foundation. There is the Asian largest chemical fiber and fiber materials production enterprise in this region¡ªYizheng Chemical Fiber Company. The company is planned to reach the annual production capability of 1.7 million ton of polyester and 1.2 million ton of PTA. The output of polyester film and engineering plastic will be greatly increased. Refined chemical projects at the first stage of 1,4-butanediol, EVA emulsion and PTMEG of Taiwan Dalian Chemical Company and synthetic pyrethroid of Yangnong Group have been taken shape. The projects of propenol with annual production of 200,000 ton, PX with annual production of 450,000 ton, PTA with annual production of 600,000 ton, heavy junction asphalt with annual production of 1 million ton, and so on will be put into construction successively.

5). Abundant human resources. Nanjing , Yangzhou and Zhenjiang Cities are compact districts with colleges and universities and have abundant technical strength, especially in chemical science and technology. There are altogether 36 common colleges and universities and 137 scientific institutions, among which there are 16 colleges and universities with chemically specialized subjects, 15 chemical design and construction units, more than 30 chemical machine manufacturing and research units. These units possess strong power in the area of designing, manufacturing and constructing large-scale petrochemical equipments. Yangzhou also has professional chemical vocational school, which can provide large quantities of professional talents and skilled workers. Moreover, quality of labor force in Yangzhou is relatively high while price of labor force is relatively low.

3. Strategies for developing chemical industry cluster in Yangzhou City

1). Industrial orientation and industrial choice

Degree of association among petrochemical industries is very high. Relationships between upper and down stream chains are very close. The industry includes oil and natural gas development, petroleum refining and coking industry, chemical feedstock and products manufacture, chemical fiber manufacture, rubber manufacture, plastics manufacture and so on. Chains of petrochemical industry can be divided into organic and inorganic parts, of which organic part is the principal part of industrial chains and key point of chemical industry, while inorganic part mainly involves in production of inorganic chemicals such as three acids and two alkalies.

2). Industrial layout

According to the general layout of development along Yangtze River , layout of chemical industry appears as ¡°one body with two wings¡±. Yizheng City lies in the west part and concentrated on developing heavy chemical industry and petrochemical materials circulation. Yangzhou City development zone lies in the middle part and concentrates on developing refined chemical and new chemical materials. Jiangdu City lies in the east part and concentrates on developing pesticide, refined chemical and new chemical materials. The three parts form a chemical industrial belt along Yangtze River with distinctive features.

(1). Yangzhou (Yizheng) Chemical Industrial Park . Concentrate on developing heavy chemical industry and petrochemical materials circulation. By means of special advantages of the Sixth Port Affairs Company of Nanjing Port, which is a professional petrochemical products port with many berths, large throughput capacity and annual transshipment capability of 20 million ton, develop large-scale materials circulation and storage business of transshipment, storage and transportation of petrochemical and liquid chemical products in the middle and lower reach of Yangtze River. Recently, in order to adapt the increasing demands for liquefied gas in headwater area of Yangtze River, construct a low temperature refrigerator with 2 ¡Á 50,000 m 3 , a high temperature and tension tanker with 4 ¡Á 1000 m 3 , and a first class liquid natural gas storage and transportation station with volume of circular flow of 1 million ton. Plan to import C 3C 4 mixture gas from Middle East to provide gas in headwater area of Yangtze River . Finally, build a large-scale petrochemical materials circulation and distributing center in the lower reach of Yangtze River . Take advantages of adjacent famous large-scale enterprises at home and abroad, such as Yihua, Yangzi, Yangba, Jinling Petrochemical, Nanhua and so on, into full play, develop and construct heavy chemical and its extended refined chemical production base.

(2). Yangzhou economic development zone. Regard new chemical materials and refined chemical as fundamental developing direction, adopt the newest technologies at home and abroad, concentrate on develop products in line with the national industry policies, and promote grade of chemical industry. Recently, concentrate on developing four major series of products including polyolefin modification special materials, polymer with special function, refined chemical and biochemical.

(3). Jiangdu development zone. Concentrate on developing pesticide, new chemical materials, refined chemical in new fields and petroleum and arene deep-processing industry. ¢Ù Regard Changqing Group, Zhoulong Group, Dongbao and other enterprises as leading enterprises, promote to tackle the key technologies of pesticide, and form pesticides, technical grade and preposition processing industries with ability of independent innovation and core competitiveness. ¢Ú Take resources advantages of domestic oil fields and Yangzi ethylene arene into full play, expand petroleum refining and deep processing of arene series. By the end of the Eleventh Five-Year Plan, Capability of crude processing of Yangzhou Petrochemical Factory will reach 1 million ton. Expand production ability of arene solvent oil of Hualun Chemical so as to make it become the largest solvent oil production enterprise in China . ¢Û Regard Gaohai, Xinxin Plastic Chemical and Xiangrong Plastic Chemical as main bodies to develop new chemical materials. Further promote technical level and market competitiveness, enlarge production of packing material, filler material, and PVC sheet material, and develop polymer alloy materials.

3). Principles and goals for developing the industry

Principles: According to the state industry policy, regard market as guidance, combine with the currently industrial base and regional resources advantage, adjust and optimize production structure, develop chemical products with distinctive features, form a chemical products cluster and chemical industrial belt along Yangtze River with regional features, and promote survive and development capability and competitiveness of enterprises and regional economy.

Goals: Through five to ten years' struggles, chemical industrial chains joined and supplemented in the middle and lower reach of Yangtze River should be initially taken shape. The whole industry is planned to reach production value at current price of 40 billion Yuan in 2010. The rate of production value of refined chemical products will approach international advanced level. The ability of technical innovation of enterprises will be remarkably strengthened. The overall production technical level and equipments level of the industry will reach the international standards in the middle of 1990s. The concentration degree of its main products will be obviously enhanced.

4. Development highlights of chemical industry in Yangzhou City

Take the regional advantage of locating near Yangtze River and the sea into full play, rely on Yangzi Petrochemical, Jinling Petrochemical, Yizheng Chemical Fiber, Nanhua Group and other upriver enterprises, regard high-tech industry as guidance, adjust industrial structure, extend industrial chains, develop in the direction of seriation, customiztion and refinement, construct petrochemical industrial belt along Yangtze River, build five industrial highlands including ethylene petrochemicals, basic chemical materials, agrochemicals, new chemical materials and refined chemicals, and promote industrial level.

1). Chemical fiber

Regard Yihua Company as leading enterprise, give prominence to main products of polyester, and realize cost minimization of polyester, seriation and high value added of polyester processing products. Strengthen domestic production of PTA, PX and other special technologies and accessory technologies, and carry out research and develop of industrial filament, PTT, PLA and other new fields. Speed up construction of project of annually producing 200,000 ton of bottle basic slice (CP) and SSP project, enhance differentiation and benefit contribution of special materials products, take the opportunity of declaring ¡°National Engineering Research Center of Polyester and Terylene¡± to strengthen construction of enterprise technical center.

2). Petrochemical industry

Mainly rely on Jiangsu oil field and Yangzhou (Yizheng) Chemical Industrial Park, in response to Nanjing Chemical Industrial Park with national grade, regard Jiangsu oil field, Yangzhou Petrochemical Factory, Dalian Chemical and so on as leading enterprises, concentrate on developing oil extraction, oil refining, ethylene, polypropylene, 1,4- butanediol, and petrochemical products of lower reaches of Yangtze River. In the future five to ten years, concentrate on carrying out newly added 500,000 ton capacity project of Jiangsu oil field, 1,4-butanediol project of Taiwan Dalian Chemical, 1 million crude oil processing and 80,000 ton polypropylene projects of Yangzhou Petrochemical Factory, and 340,000 ton polyvinyl chloride project of Taiwan Huaxia Plastic, by means of business introduction and capital attraction, build 1.2 million ton ethylene project. The newly added investment will be 27.7 billion Yuan and newly added sales income will reach 22 billion Yuan.

3). Pesticide

Concentrate on developing highly efficient, safe, convenient and environmental friendly insecticide and bactericide products, new types of herbicide products, and biological antibiotics for agricultural use. Develop convenient deflocculant, aqueous emulsion, micellar emulsion, microcapsul and other new emulsions with good environmental compatibility. Develop and combine new technologies of chemical technology, biological enzyme resolution, positioning technology, oriented synthesis and so on. In the future five to ten years, concentrate on carrying out Yizheng production base of Yangnong Group, biological pesticide of Changqing Group and other projects. The newly added investment will be 2 billion Yuan and the newly added sales income will reach 2.6 billion Yuan.

(1). Synthetic pyrethroid types products: Regard Yangnong Group Company as main body, enlarge capability of production, develop new products, and form pyrethroid industry. Recently, concentrate on developing fluoring series of pyrethroid products, such as 4-fluoring pyrethroid, 7- fluoring pyrethroid, fluoring silicium pyrethroid and so on. On the basis of current annual pyrethroid series production of 2000 ton, further increase production capability of 1200 ton, and strive to build the aircraft carrier of pyrethroid industry in China .

(2). Herbicide and bactericide products: Regard Jiangsu Changqing Agricultural Chemical Company as main body, concentrate on developing new types of herbicide and bactericide products. Recently, layout and invest 7.5 million Yuan to develop new products such as lactofen, difenoconazole technical grade and its preparation and so on. Make its herbicide products continuously keep leading position in Jiangsu Province .

(3). Biological pesticide: Regard Yangzhou Lvyuan Biological and Chemical Company as main body, adapt the market demands of green products, actively develop Bt and its preparation, research and develop epiphyte and virus biotic insecticide and other new products.

(4). Preparation and re-dispense preparation products: Regard Jiangsu Sanxiao Group and Jiangsu Dongbao Agricultural and Chemical Company as main bodies and concentrate on develop anti-mosquito incense and other series of sanitary disinsection production preparation and pesticide re-dispense preparation products.

4). Refined chemical materials

(1). New materials: Regard Nanjing Port Affairs Co. Ltd., Qionghua Group, Qunfa Group and Gaohua Chemical Co. Ltd. as core enterprises, concentrate on developing polymers, new types of packing material, tyre framework material, and denatured fuel alcohol. In the future five to ten years, concentrate on carrying out projects of polymers of Nanjing Port Affairs Co. Ltd., high mould and low shrink terylen builder fabric of Qunhua Group, new type of PVC backing material of Qionghua Group and denatured fuel alcohol with annual production of 300,000 ton of Gaohua Chemical Co. Ltd. The newly added investment will be 6.3 billion Yuan and newly added sales income will reach 16 billion Yuan.

(2). Auxiliary series products: Regard Jiangsu Qunfa Chemical Company and Gaoyou Auxiliary Factory as main bodies, concentrate on developing textile dyeing and printing auxiliary, rubber ingredients, detergent auxiliary, fluorescent bleaching agent and other products.

(3). Dye: Regard Yangzhou Gaokang Dye Chemical Company as main body, and concentrate on developing high-class, bright and strong fastening acid dyes, direct dyes and substitutions for harmful dyes, which are in line with demands of environmental protection, and concentrate on developing temperature sensing dyes ODB and so on.

(4). Paint: Regard Jiangsu Huaao Paint Chemical Co. Ltd. as main body, concentrate on developing energy-saving, environmental protection and durable paints such as automobile paint, architectural coating, heavy anti-corrosive paint (for bridge use) and so on.

5). C1 Chemical industry

As the conflict of oil supply and demand is getting more and more larger, the development of C1 chemical industry, which can produce various chemical products and clean fuel and develop supplementary and alternative energy of petroleum using natural gas and coal as raw materials, has already become an inevitable trend of modern chemical industrial development. Because Guojiangmen Station of natural gas transmission from west to east China is set up inside of Yizheng City , the area enjoys resources advantage to develop C1 chemical industry. Our city should actively introduce technologies of C1 chemical industry, and concentrate on developing carbinol made by natural gas and carbinol series products (such as oxalic acid, methyl formate and so on), and acetic acid produced by means of methanol oxo-synthesis and acetic acid series products (such as vinyl acetate, chloroethylene, chloroactic acid, acetate and so on).

6). Basic chemical products

In the aspect of inorganic chemical products: Regard Yangnong Group Company and Xinye Chemical Company as main bodies, concentrate on developing products of ¡°two acid and one alkali¡±. Till 2010, annual production capability of sodium hydroxide in Yangnong Group will be 200,000 ton, annual production capability of hydrochloric acid in Yangnong Group will be 60,000 ton, annual production capability of sulfuric acid in Xinye will be 500,000 ton. Regard Yangzhou Tianchen Refined Chemical Company, Jiangdu Dongjin Zincum Industry Group, and Jiangdu Longchuan Zincum IndustryCo. Ltd as main bodies, concentrate on developing zincum series products, annually production capability of zinc oxide and zinc chloride will reach 10,000 ton in 2005.

In the aspect of organic chemical products: Regard Yangnong Group as main body and concentrate on developing benzene series products. Annual production capability of chlorobeniene will be 100,000 ton, para(ortho)-nitrochlorobenzene 100,000 ton, aniline 30,000 ton, para aminophenol 10,000 ton and m-dichorobenzene 5000 ton. Regard Dalian Chemical as main body and concentrate on develop 1,4- butanediol with newly added annual production capability of 30,000 ton.

7). Chemical fertilizer for agricultural use

Regard Yangzhou Gaohua Chemical Company and Yangzhou Zhongyu Fertilizer Industry Company as leading enterprises and concentrate on developing compound and organic fertilizer with medium and high concentration. Based on the current foundation, annual production capability of compound fertilizer with medium and high concentration will reach 100,000 ton and annual production capability of organic and special fertilizer will be 100,000 ton.

5. Policies and countermeasures for developing chemical industry cluster in Yangzhou City

1). Reinforce structural adjustment and carry out collectivized strategy. First, reinforce strategic adjustment of state-owned economy and strategic regrouping of state-owned enterprises, make enterprises become main bodies in market competition as soon as possible. Encourage and support nongovernmental business, individual and private enterprises to participate in regrouping and reconstruction of state-owned enterprises. Introduce large-scale enterprises and groups at home and abroad to speed up merger and combination with various medium and large-scale enterprises and form large scale effect by means of merger, purchase, proprietary and mutual share-holding. Second, speed up construction of modern enterprise system. Form new concept of modern enterprise system, popularize and apply foreign advanced management pattern. Speed up improvement of competitive, incentive and commitment mechanism, actively explore ways and means to realize general adoption of the market principle and stock ownership of capital, technique, management and other production elements, improve structure of stock ownership, and build modern enterprises in line with demands of market economic structure. Third, enlarge and strengthen enterprises with preponderant advantages, organize a group of large-scale enterprises and groups with capacity of appropriate scale of operation, capital operation and multisectoral operation, and enhance international competitiveness of large-scale companies and groups. Before 2010, concentrate on cultivating and promote development of eight to ten enterprises with large-scope production capability represented by Yangnong Group.

2). Speed up technical innovation, and strengthen core competitiveness of enterprise. Scientific and technical innovation is the core element of technical advancement. Build and improve enterprise technical innovation system, strengthen main body conducts of enterprise technical innovation, and improve independent innovation capability. Through technical innovation, grasp key and core technologies, and gradually form core and special technologies and products with competitive advantage with independent intellectual poverty rights. Proceed from actual conditions of enterprises, study and stipulate directions and goals of technical innovation in order to make enterprises become main body of technical innovation as soon as possible. Actively carry out research and development pattern of combination of production, study and research, strive to explore cooperation pattern of production, study and research in accordance with market principles, and establish a close combination of production, study and research with capital as link. Concentrate on introducing advanced technologies and suitable technologies, reinforce enterprise technical innovation, actively adopt new technologies and craftwork, continuously enhance technical equipments level and technology level of enterprises.

3). Speed up construction of park zone and promote industrial centralization and upgrade. Take full advantages of opportunities of shifting of global manufacture industrial center and adjustment of the world petrochemical industry, and vigorously carry out strategy of expanding outward. By means of joint venture, cooperation and strategic regroup, promote chemical industry in our city to cooperate with international well-known multinational chemical enterprises in a higher starting point, actively absorb foreign capital, technologies, management and market development experiences, and realize striding development of petrochemical industry. Industrial park zone along Yangtze River is an important strategic platform to invite business and attract capital and develop export-oriented economy in Yangzhou City . Currently, speed up construction of infrastructures of park zone, build and improve service system, and speed up connection of tracks with international management system and operation mechanism. First, in accordance with the thoughts of ¡°integration of product items, integration of public and auxiliary use, integration of materials circulation and transmission, integration of environmental protection, and integration of management and service¡±, build management pattern and business establishing environment suitable for development of chemical industry, and comprehensively strengthen innovation and service function of park zone. Second, by means of constructing three-dimensional network of modern highway, waterway and pipeline, systematically connect industrial chains in the upper and lower reach of Yangtze River, and form chemical industrial belt along Yangtze River with integration of stream of people, materials circulation and information flow, combination of heavy chemical industry with refined chemical industry and connection of petrochemical industry with traditional chemical industry. In line with demands of developing ¡°large-scale, advanced, intensive and combined¡± modern petrochemical industry, carry out strategy of industrial integration. Combine development of park zone with adjustment of local petrochemical industrial layout and industrial upgrade, gradually centralize newly-built, rebuilt and expanding chemical industry projects into chemical industrial park zone, rely on raw materials products in upper reach of Yangtze River produced by large-scale enterprises in park zone, drive development of small and medium enterprises and accessory projects extending in lower reach of Yangtze River, realize optimized combination of raw materials products, optimize resources allocation, and push forward industrial centralization and upgrade.

4). Reinforce business invitation and capital attraction and realize multiplication of investment main bodies. In order to speed up development of chemical industry in our city, it is necessary to mobilize and centralize various resources. By means of various kinds of forms, give full play to ¡°the three capital¡± function of foreign capital, domestic capital and non-governmental capital, vigorously attract non-governmental capital not only from Jiangsu Province but also from other provinces in particular, further attract foreign businessmen to directly invest in Yangzhou so as to form multiple investment system and develop chemical industry in our city.

5). Take the course of new industrialization and carry out substantial development strategy. Petrochemical industry is not only a basic material industry, but also an industry with close relationships with people's living. However, it is an industry causing relatively large pollution to environment. Therefore, unswervingly take the course of new industrialization featuring high scientific and technological content, good economic returns, low resources consumption, little environmental pollution and a full display of advantages in human resources. Vigorously carry forward clean production in order to reduce output of contaminant from springhead, strengthen management, build standard environment management system, and strengthen terminal administration in order to make enterprises production not pollute environment any more and influence ecological balance. Adopt modern industry pattern with sustainable development in developed countries, take the course of positive development. Build up green concept, develop green products, carry out green production, and promote green criteria so as to make environmental strategies of developing chemical industry in our city continuously apply in the overall process of production. Strive to conserve raw materials and energy, reduce the usage of poisonous raw materials, and carry out clean production in the whole process from raw materials abstraction to final disposal of products.