Chemical park notches up $10b investment deals

   Date:2007/12/17     Source:
SHANGHAI Chemical Industry Park has attracted investment worth more than US$10 billion since it struck its first deal in May, 2001, the park developer has announced.

The US$10-billion landmark was achieved with the recent approval of Bailian Group's 270-million-yuan (US$36.6 million) fuel storage project in the park, according to the Shanghai Chemical Industry Park Development Co.

Sales from the park are expected to exceed 50 billion yuan this year, up from 35.5 billion yuan in 2006, said Yu Liangru, assistant to the president of the park development company.

"Things like investment scale and how much sales you can realize are definitely not our top concern while selecting potential investors. Anyone wants to set up a presence here must prove they are eco-friendly and with high energy efficiency," Yu said.

The park has ruled that only projects that consume less than 0.5 tons of standard coal per 10,000 yuan of gross domestic product would be admitted. By comparison, China's national average was 1.22 tons of standard coal in 2005, although the government has pledged to cut this amount by 20 percent by 2010. Of the US$10-billion investment, 12 percent is related to environment protection, Yu added.

On the other hand, the world's best-known chemical companies are not hesitating to bring their most advanced technologies into the Shanghai park.

For example, Germany's Bayer MaterialScience plans to commission a 300,000-ton-a-year TDI plant in 2010 at its integrated site in the park using the gas phase phosgenation (GPP) process, which could save around 80 percent on solvent and consequently uses some 40 percent less energy. This would be the first deployment of the GPP process on a large industrial scale worldwide.

TDI is a key starting material to make foam used in large quantities in furniture, mattresses and seat cushions.
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