SINOPEC Shanghai Petrochemical Co said it has started operations of China's largest diesel hydrofining unit in the city's Jinshan area to help produce diesel that meets the Euro III vehicle emission standard.

Operations of the 3.3-million-ton-a-year unit started on Monday, the company said yesterday. The project is part of a plan to boost quality of its fuel products with more refining capacity coming on stream.

Hydrofining is a petroleum purifying process which can cut sulfur and nitrogen content and boost chemical stability.

The company said this will help expand its market share. China is adopting stricter auto emission standards equivalent to Euro III from Euro II. The new unit could be able to produce diesel in line with stricter Euro IV standard in the future with a small additional investment for upgrades, it said.