"Building such a chemical base is in the city's new five-year (2001-05) development scheme," Jiang said.

The base consists of four zones - the Shanghai Chemical Industry Park on the north bank of Hangzhou Bay, the Wujing Chemical Industry Zone in the west, the Wusong Chemical Industry Zone in the north and a tire manufacturing center in Minhang District.

Zhang Peizhang, president of the Shanghai Huayi (Group) Company, said projects valued at a combined US$2.2 billion will be launched in these zones in the next five years.

At yesterday's meeting, contracts for projects worth about US$100 million were signed with investors from the United States, Belgium, Russia, Singapore and China's Taiwan.

From 2001 until the end of 2005, Zhang said, the company is expected to launch projects valued at a total of US$6.5 billion as a boost to the city's chemical industry.

"This huge financial program echoes the State's plan for the city to become the largest chemical industry base in Asia," said Zhang.

He revealed that the city government has signed agreements with the China Petrochemical Corporation to refine 30 million tons of oil and produce 3 million tons of ethylene annually in Shanghai in a bid to produce sufficient raw materials for the local chemical industry.

Zhang said the Shanghai Chemical Industry Park will set up facilities to refine 10 million tons of oil and produce 2 million tons of ethylene annually.

Construction on the first ethylene factory capable of producing 900,000 tons of the fuel will begin next year and will be completed in 2005. The US$3 billion project will be a joint venture by the Shanghai Petrochemical Company, British Petroleum and Amoco from the United States.

Zhang said land had also been made available for another ethylene plant capable of producing 1 million tons.

(China Daily 03/29/2001)