Ambitious Yangzi Petrochemical
                   By Chen Shibin
Yangzi Petrochemical Corpora-tion has made a rapid  develop
-ment  since  its  establishment  and  has  gained  a  very
important position and role in the petrochemical sector in
China. From the great expansion the company  has  achieved
in the recent years, one can fully  appreciate  its  great
ambitions.  On  Nov.   19,   1997,   Yangzi  Petrochemical
Corporation, Yizhen Chemical Fiber Co.,   Ltd. ,   Jinling
Petrochemical Corporation and Nanjing Chemical  Industrial
Corporation were integrated  into  Donglian  Petrochemical
Group, China's  biggest  petrochemical  group  corporation
(See 1997 CCR No. 36, page 3).   The  event  has  attracted
great attention from domestic  and  foreign  counterparts.
After the successful issuance of "Yangzi Petrochemical" at
  Shenzhen  Stock  Exchange  on  April  2,   1998,   Yangzi
Petrochemical Co., Ltd. was established on April 23. ( See
1998 CCR No. 15, page 3). Yangzi Petrochemical Corporation
will be an  important member in the two big  petrochemical
groups (see 1998 CCR  No.17 Page  3) recently regrouped in
China's petrochemical sector.
    The  future   development   of   Yangzi   Petrochemical
Corporation will mainly rely on two ways. One is  internal
potential tapping, renovation and expansion, and the other
  is  joint  venture   with   foreign   companies.     Most
petrochemical units in the corporation were completed  and
put into operation in July  1987.   After  several  years'
renovation and expansion, the total capacity in  1997  was
expanded by more than one-third  compared  with  the  time
when the ethylene project  started  production,   and  the
total asset value was doubled. After the completion of the
all-round renovation with the 650 000 t/a ethylene unit as
the key in 2000,  Yangzi  Petrochemical  Corporation  will
become extremely powerful. Table 1 shows the detail.
Yangzi Petrochemical Corporation and BASF of Germany signed
a contract on Feb. 3, 1994  on  joint  construction  of  a
styrene project, and Yangzi-BASF Styrene Co.,   Ltd.   was
established. The project included 130  000  t/a  ethylene,
120 000 t/a styrene and 102 000 t/a polystyrene. The total
investment was 1.56 billion yuan, and Yangzi Petrochemical
Corporation held 40% ownership and BASF held 60% ownership
. The project was  completed  and  put  into  operation  in
November 1997.
  Yangzi Petrochemical Corporation and BASF cooperated once
again and signed a letter of intent on March 29,  1996  on
joint construction of an  integrated  petrochemical  base.
The total investment is 36 billion yuan. The project  will
be planned at the same time but constructed in phases. The
whole project will start production in 2003. The base  has
12 petrochemical units. Table 2 shows the detail.
  It can be seen from the above that with the completion of
the development strategy by the end of this century or the
  beginning  of  the  next  century  Yangzi   Petrochemical
Corporation will have an ethylene capacity of 1.25 million
t/a and a sales revenue of 40 billion yuan.  The  size  of
Yangzi Petrochemical Corporation will be  three  times  as
big as it is today.
Table 1   Renovation and Expansion of Yangzi  Petrochemical
             Corporation in the Recent Years('000 t/a)
        Item                            1987            1998            2000
Ethylene                                300             480             650
High Density Polyethylene               140             160             360
Polypropylene                           140             160             360
Ethylene glycol                         200             200
Aromatics                               450             850             1 000
Refined terephthalic acid               450             600             800
Conversion of residuum into light ends  1 000
Acetaldehyde                            60              60
Acetic acid                             70