The large-scale iron, steel and petrochemical projects under construction in Zhanjiang present new opportunities for economic cooperation with ASEAN to reach a higher level, said Mayor Wang Zhongbing.

Located on Donghai Island in Zhanjiang, a petrochemical complex built with joint investments from the China Petroleum & Chemical Corp and the Kuwait Petroleum Corp is scheduled to go into operation in 2014.

Its initial investment is 59 billion yuan ($9.35 billion), and it has a designed capacity of 15 million tons of crude oil and 1 million tons of ethylene annually.

Construction began in late May on the 69.6 billion yuan Baosteel Zhanjiang Iron & Steel Co project, which is designed to turn out 9.2 million tons of iron and 10 million tons of steel annually.

There is room for a second phase of the project, which is planned to go into operation in 2015.

The leaders of the Baosteel Zhanjiang Iron & Steel project also aspire to make it the most energy-efficient low-emission facility of its kind in the world, with about 11 percent of the investment spent on energy conservation and environmental protection, said Yan Longbao, chief planner and senior engineer of the project.

The two projects are expected to draw an additional 460 billion yuan in investments in related industries.

"We welcome investment into industries related to the iron and steel and petrochemical projects," Wang said.

The city has planned a 47 square kilometer iron and steel industrial cluster, including 17 sq km for the Baosteel Zhanjiang Iron & Steel Co and 30 sq km for related industries.

Steel industrial parks are also planned in several parts of the city - Leizhou, Suixi, Lianjiang and Wuchuan - to develop the industries of machinery, shipbuilding, offshore engineering equipment, auto parts, home appliances, metal packaging and information technology, he said.

ASEAN is a net importer of steel, and China is its second largest source, said Tan Ah Yong, secretary-general of the Southeast Asian Steel Industry Association. He suggested that cooperation in steel between China and ASEAN be carried out in technical, strategic and trading aspects.

With a vast combined population, China and ASEAN form a huge market for steel, and much space still exists for further growth, said Yang Zunqing, deputy secretary-general of the China Iron and Steel Association.

Yang suggested that exchanges between the two bodies be enhanced in technology and trade as well as among enterprises and personnel.

Zhanjiang is building a 50 sq km petrochemical cluster on Donghai Island and petrochemical industrial parks in Suixi and Wuchuan, which will accommodate the manufacture of ethylene, propylene, refined chemicals, organic materials, synthetic materials and new packaging materials.

The Sino-Kuwaiti project will offer 38 categories of products, which can be further processed in an extended industrial chain, said Shi Xianping, deputy director of the China Petroleum and Chemical Industry Planning Institute.

Donghai Island forms part of the 469 sq km Zhanjiang Economic and Technological Development Zone, which drives the industrial development of the city.

Also, as a high-tech industrial zone and a circular economic zone, the Zhanjiang Economic and Technological Development Zone has released a series of favorable policies to attract investment.

liwenfang@chinadaily.com.cn

(China Daily 06/30/2012 page6)