On the morning of December 18, Wuhan officially broke ground on its 800,000-ton ethylene project in Beihu, Hongshan District. With a total investment of 14.67 billion yuan, this marks the largest industrial project ever funded by the state in Wuhan since the reform and opening-up era. It is also the sole large-scale petrochemical project planned for the central region during China's "Eleventh Five-Year Plan" period.
Currently, most domestic ethylene plants are concentrated in the Bohai Bay, Yangtze River Delta, and Pearl River Delta regions, leaving a significant supply-demand gap in the central region. Hubei’s petrochemical industry has long been constrained by a lack of ethylene—the fundamental raw material for plastics and other chemicals—limiting its industrial development. Decades ago, Hubei first proposed the ethylene project, and after nearly 30 years of planning and effort, the dream has finally come true.
The project was approved by the National Development and Reform Commission in April this year. It will leverage the refining facilities of Sinopec’s Wuhan Branch to build an integrated upstream and downstream production system. The project includes eight major production units: 800,000 tons/year of ethylene, 300,000 tons/year of linear low-density polyethylene, 300,000 tons/year of high-density polyethylene, 10/38 tons/year of ethylene oxide/ethylene glycol, and 400,000 tons/year of polypropylene, along with supporting infrastructure such as thermal power stations and docks.
Expected to be completed by 2010, the project is anticipated to generate over 20 billion yuan in annual sales and create around 50,000 jobs. Moreover, it will stimulate the growth of downstream industries by approximately 100 billion yuan, positioning Wuhan as the central region’s first large-scale integrated chemical production base.
To support the project, Hubei Province and Wuhan City have developed a master plan for the Wuhan Chemical New City. This initiative aims to build a new chemical zone covering 89.1 square kilometers in the Beihu and Baijishan areas, bordering Qingshan and Hongshan. The plan involves an investment of over 35 billion yuan.
Additionally, Wuzhou Petrochemical Co., Ltd. has started a technical upgrade project to complement the ethylene project. Once completed, the crude oil processing capacity will increase from 4 million tons per year to 8 million tons, ensuring a steady supply of high-quality raw materials for the ethylene plant.
By linking upstream and downstream enterprises such as Wuhan Petrochemical and Jingmen Petrochemical, the project is expected to boost Hubei’s petrochemical industry sales to over 100 billion yuan by the end of the Eleventh Five-Year Plan period.
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