Development Direction of China’s Chemical Industry Parks During the “14th Five-Year Plan” Period
Click:0    DateTime:Jul.30,2021

The Working Committee of Chemical Industry Park, China Petroleum and Chemical Industry Federation

Editor's comment: Yang Ting, Secretary General of the Working Committee of Chemical Industry Park, China Petroleum and Chemical Industry Federation, issued Development Guide during the “14th Five-Year Plan” Period & Medium and Long-term Development Prospects by 2030 for Chemical Industry Parks at the 2021 Petrochemical Industry Development Conference held in Guangxi recently. The editorial department of this journal has made this report for your reference. We hope you enjoy the read.

Opportunities and challenges for the development of chemical industry parks during the “14th Five-Year Plan”

1. Development opportunities

(1) Standardization is conducive to optimizing the layout of chemical industry parks

A series of relevant industrial policies were carried out during the “13th Five-Year Plan” period, underlining the importance of chemical industry parks in the layout optimization and high-quality development of China's petroleum and chemical industry. The Guiding Opinions on Adjusting the Structure of Petrochemical Industry to Promote Transformation and Raise Profits (Issued by the State Council (2016) No. 57) specified that all new refining and chemical projects should enter petrochemical bases, and all new chemical projects should enter chemical parks. The State Council issued the revised edition of Petrochemical Industry Planning and Layout Plan in 2018, suggesting that chemical industry parks should be more clustered to be more efficient and thus a number of world-class petrochemical industry bases will be gradually set up. The General Office of the CPC Central Committee and the General Office of the State Council jointly issued the Opinions on Comprehensively Reinforcing the Security Production of Hazardous Chemicals in February 2020, highlighting the formulation of construction standards, identification conditions and administrative measures for chemical industry parks, as well as the implementation of holistic evaluation and compliance identification of existing chemical parks. Therefore, the standardized construction and scientific management of the chemical industry parks will be of key focus during the 14th Five-Year Plan period, which will be conducive to the development of chemical industry parks and the introduction of high-quality projects, thereby creating a healthy development environment.

(2) Green development promotes the upgrading of chemical industry parks

The green development of chemical industry parks not only refers to security and environmental protection, but also the use of advanced technology and process. It is committed to keeping the production process security, implementing energy saving and emission reduction, reducing pollutant emissions as well as improve quality of products; strengthening the construction of utilities and infrastructures in the industry parks to enhance the integration, reduce the production cost of the settled enterprises, and gain more market competitiveness; perfecting the professional management approaches and service ideas so as to optimize the business environment of the parks. In the end, it will facilitate the upgrading and sustainable development of the chemical industry parks.

(3) Reform and innovation are conducive to the debottlenecks of chemical industry parks

China's economic development mode is shifting from development elements-driven expansion to innovation-driven, so innovation has become the predominant driving force of the development. However, restricted by the fact that the reform of the external management system of the parks is laggard, the existing management approaches of China's chemical industry parks are increasingly unable to meet the development needs of the new situation. As the government is strengthening the reform of economic development zones as well as the reforms to streamline the government, delegate power, and improve government services, all the regions are exploring the innovation in management and the reforms in system and mechanism of the chemical industry parks. These initiatives will hopefully provide new solutions for the current problems of system and mechanism faced by the chemical parks, and upvalue the parks to their middle and high end, so the parks will come into full play in regional economic development and open economic construction.

2. Limitations and challenges

(1) Development elements

The industrial development in advanced chemical industry parks is largely restricted by environmental capacity, total energy consumption and energy consumption index per unit GDP, and index of sea or land use. In some regions, "one-size-fits-all" strict restrictions on the total investment of projects and investments per unit land have been even regulated. These policies keep many advanced chemical industry parks from complementing and extending their industrial chain, and make some fine chemical and new materials projects with high tech and high added value, as well as circular economy projects pending. In addition, many policies, regulations and standards applied in the construction and development of chemical industry parks have been formulated before the parks construction, so it is inevitable that some articles are not proper for the current development of chemical industry parks.

(2) System and mechanism

Most of China's chemical industry parks have been established by economic development zones, high-tech zones and a variety of industrial parks according to their specific characteristics, but in practice, there are some limitations: their functions are not well positioned and the management efficiency of the "Combination of Administrative Region with Economic and Technological Development Zones" mode is not high; the burden of social management is so heavy that it tends to return to the "large and all-inclusive" system; the market is unable to play its due function under the government-led development mode; the legal status is not clear, and many administrative acts have no legal basis.

(3) Talents

There is a big gap in the development level, development ideas, management level and professional quality of managers among China's chemical industry parks. At the same time, the expertise and specialized management ability of some managers of the Management Committee of chemical industry parks - the primary outpost agency of a regional government, are yet to be improved. In addition, the change of some staff positions from time to time is a barrier for the parks to run a long-term and consistent professional management system.

At the same time, many chemical industry parks are carrying out the "Combination of Administrative Region with Economic and Technological Development Zones" mode, which means that the managers undertake a lot of government and social affairs in addition to their routine administrative work, so they cannot concentrate on the construction and management of chemical industry parks, which is not conducive to the professional management and sustainable development of the parks.

Six principles for the development of chemical industry parks during the “14th Five-Year Plan”

1. Adhering to security development

The security development of chemical industry parks is a component of the construction of Peaceful China initiative. The chemical industry parks should always set the security development as priority; improve the planning of security development, as well as the construction of security infrastructures, security supervision system and emergency system; carry out smart construction projects to improve the intellectualized level of the parks, and use new chemical reaction technology, new process technology and new control technology and a variety of new information technologies to improve the security level of the parks.

2. Adhering to innovative development

Innovation powers us ahead in the economic development, so scientific and technological innovation should be regarded as the first driving force to lead the development of modern petrochemical industry, and the innovative development should be regarded as the strategic pivot of the development of chemical industry parks during the 14th Five-Year Plan period. We should attach importance to the construction of innovation platforms, allow scientific and technological innovation to play its supporting and leading role in the industrial development, strengthen the dominant positions of enterprises in technological innovation, promote the collaborative innovation of the whole industry chain and develop a number of key common technologies.

3. Adhering to synergetic development

Given the development gap between the north and the south, the geographical and resource endowment differences between the areas along the coast and the Yangtze River and inland areas, we should make great efforts to build a new development and construction pattern for chemical industry parks with reasonable layout and optimized structure, and to harmonize the development between economy, environment and society. Regional governments should take use of their comparative advantages and resource endowment, as well as coordinate the main functional area, land use, ecological environment protection and industrial development, so as to build large-scale petrochemical bases and professional chemical parks with different characteristics. The governments should promote the synergetic development of parks along the coast and the Yangtze River as well as in inland areas, and encourage the orderly transfer of chemical industries in domestic chemical parks.

4. Adhering to green development

According to the concept of "green development with ecology as priority", the government is promoting chemical industry parks to form an eco-friendly, green and healthy production mode, and to achieve co-existence and interdependence among resources, environment, ecology and economic society by realizing a highly-circulating industrial mode, highly-efficient utilization of resources, and upvaluing the industrial chain continuously.

5. Adhering to open development

Chemical industry parks should be more opened during the “14th Five-Year Plan” period to integrate themselves into the construction of the Belt and Road. They should target the international middle and high-end industrial chains, and build the chemical industry parks into a new platform for the opening and development of the country.

6. Adhering to sharing development

Adhering to sharing development is the only way for chemical industry parks to achieve high quality development. Sharing development refers to platform sharing, information sharing and experience sharing among enterprises in the parks. The parks provide third-party public engineering services to reduce the operating costs of enterprises. It also includes the sharing of benefits brought by the development of the parks between the parks and surrounding communities, which will create a good environment for the development of the parks, and co-build a harmonious and prosperous ecology.

Cultivation of 70 first-class chemical industry parks and five 50-clubs

During the “14th Five-Year Plan” period, chemical industry parks should leap from standardized development to high-quality development. Five world-class petrochemical industry clusters have been taking shape to comply with five key projects of industrial parks including industrial development and promotion, green construction, intelligent construction, standardized construction and high-quality development demonstration. The focus will be the construction and development of 70 chemical industry parks with first-class competitiveness, five 50-clubs, that is, 50 science and technology innovation centers, 50 green chemical parks, 50 smart chemical parks, 50 management and construction standards for chemical parks, and 50 high-quality development demonstration projects.

1. Industrial innovation & upgrading projects

To establish the regional planning layout in China, promote chemical industry parks to formulate realistic access and exit mechanism in accordance with their own positioning, and optimize industrial layout by adjustment and integration. To accelerate the transformation and upgrading of traditional industries and strengthen the cultivation of strategic emerging industries by focusing on innovation. To improve the industrial relevance level and industrial agglomeration degree of chemical industry parks, to extend the industrial chain downstream, led by key enterprises and leading projects, to accelerate the development of circle industries in parks, and to improve the concentration degree of industries of the same kind such as fine chemical industry. By 2025, 50 science and innovation centers of parks will be built.

2. Green construction projects

To establish and improve the evaluation system of chemical industry parks that meets the requirements of green development, cultivate a number of green parks as pilot and leading parks to promote the green development of chemical industry parks further. To consistently fight against pollution, carry out the recycling transformation of chemical industry parks to realize the recycling of industrial chain, efficient utilization of resources and centralized control of pollution in the parks, implement reasonable disposal of "three wastes" in the parks, make the responsible care scheme of chemical industry parks, and promote the practice of responsible care in chemical industry parks. By 2025, 50 "green chemical industry parks" will be established, and more than 100 key chemical industry parks will fulfill responsibility and care.

3. Intelligent construction projects

To promote the deep integration and iterative evolution of big data technology and modernization of parks, accelerate the interconnection and open & sharing of park information system and public data, build a "shareable" and "traceable" intelligent supervision system, conduct the full life-cycle supervision of hazardous chemicals, establish a rapid response emergency rescue system, and effectively improve the management level and management efficiency of parks. By 2025, 50 pilot demonstration "smart chemical industry parks" will be built, among which, 30% of the provincial level or above are establishing smart chemical industry parks. Thus, the key petrochemical bases and chemical industry parks will be able to control major security risks, and to monitor, pre-warn and control the key hazard sources and risk points.

4. Standardized construction projects

To complete the top-level design of the standard system of chemical parks, and orderly promote the urgently needed standards of staffing in chemical parks. To establish a standardized working mechanism for chemical parks, backed by association organizations and widely participated by technical support units, industry experts, universities and research institutions. To actively promote the construction of the standard system of chemical industry parks in accordance with the group standards, industry standards and national standards. By 2025, there will be 50 management and construction standards for chemical parks, which will provide strong support for management standardization and normalization.

5. High-quality development demonstration projects

To formulate "Guidance on High-quality Development of Chemical Industry Parks" based on the development experience of industrial bases and professional parks at home and abroad, focus on innovation and the construction of eco industrial parks, and timely carry out the pilot projects of high-quality development of chemical industry parks. By 2025, 50 high-quality development demonstration projects of chemical industry parks will be cultivated, including 20 high-quality development demonstration chemical industry parks with high quality, excellent management level, good industrial synergy and strong innovation ability, and 30 high-quality development demonstration projects of chemical industry parks with advanced technology and remarkable profits.

To complete five major tasks

1. To promote the optimization and upgrading of industrial structure in chemical industry parks

(1) Cultivation of special industrial parks: During the 14th Five-Year Plan period, chemical industry parks should combine their own layout and the "coupling development" with other local industries, optimize the petrochemical industry chain, develop circular economy, and achieve the synergy of upstream and downstream product chain as well as the recycling of resources.

Chemical industry parks should adhere to the principle of “limited resources, limited targets”, which refers to developing characteristic industries in line with the regional economic positioning in regional target markets, and focusing on the construction of chemical industry parks with obvious professionalism in industrial chain and product structure. The chemical industry parks along the Yangtze River and along coast should make full use of their market advantages, highlight new chemical materials and specialty chemicals to build advanced international-level professional parks and high-end industrial clusters. The parks in northwest areas should rely on their abundant mineral resources to carry out the national overall development layout and strategic deployment, moderately develop resource-based modern coal chemical industry, and actively promote the characteristic development of western modern coal chemical industry demonstration zones such as Yulin of Shaanxi, Ningdong of Ningxia, Ordos of Inner Mongolia and Zhundong of Xinjiang. The existing chemical industry parks in inland areas should speed up the transformation and upgrading, and attach great importance to the upgrading and reconstruction of old petrochemical bases including Qilu, Daqing, Quzhou, Lanzhou and Jilin. 

During the “14th Five-Year Plan” period, 70 chemical industry parks will be developed, including 40 petrochemical parks (18 coastal petrochemical parks, 18 inland petrochemical parks, and 4 modern coal chemical bases) and 30 professional chemical industry parks, in a bid to realize the synergy of petrochemical industry, modern coal chemical industry, and downstream chemical products, and draw on strengths between eastern and western regions, so as to ensure high-quality development of the petroleum and chemical industry in China.

(2) Optimization of the layout of chemical parks: parks should thoroughly implement Petrochemical Industry Planning and Layout Plan issued by the National Development and Reform Commission and the Ministry of Industry and Information Technology, and national or regional synergetic development strategies such as economic integration of the Yangtze River Delta and Beijing-Tianjin-Hebei synergetic development, and deeply implement the main function zone strategy. According to the overall requirements of regional industrial development in China illustrated in the Guidance Catalogue of Industrial Transfer (2018 Edition), the parks in northeast, east, central and western regions should coordinate with each other to give full play to regional comparative advantages and to promote differentiated and synergetic development. Taking energy resources, environmental capacity, and market space into account, they should promote the orderly flow and efficient grouping of production factors, promote the orderly transfer of industries, as well as build and improve a modern petrochemical industrial development pattern that has benign interaction between regions, complementary advantages between regions, reasonable division of labor, and distinctive characteristics.

During the “14th Five-Year Plan”, it is important to develop 70 petrochemical parks and professional chemical parks, 7 large petrochemical bases and chemical parks with reasonable layout along the coastal and the Yangtze River, good industrial foundation and high management level, so as to give full play to their leading role, and cultivate five world-class petrochemical industrial clusters with high industrial concentration and synergetic development: Hangzhou Bay petrochemical industry cluster covering Shanghai, Ningbo (Zhenhai, Daxie, Beilun), Zhoushan, Jiaxing and Shangyu; The Pan-Greater Bay Area petrochemical industrial cluster with Huizhou Daya Bay as the core, Jieyang in the north and Maozhan, Qinzhou and Yangpu in the south; Bohai Bay petrochemical industry cluster with Dalian Changxing Island, Panjin Liaodong Bay, Tangshan Caofeidian, Tianjin Nangang, Cangzhou Lingang, Shandong Binzhou, Dongying, Weifang and Yantai as the main areas; Haixi petrochemical industrial cluster covering Gulei, Quangang and Quanhui, Fuzhou and Putian; modern coal chemical industry cluster in the energy golden triangle surrounding Ningdong, Yulin and Ordos, which will promote the synergetic development and integrated development of modern coal chemical industry and petrochemical industry.

(3) Improvement of project access and exit mechanism: We should stress the leading role of industrial planning in parks, give full play to our own industrial advantages and extend the industrial chain, promote differentiated and characteristic development, strengthen the synergy of upstream and downstream product chain, energy mutual supply and resource recycling in parks, and promote the implementation of project access management system and project pre-evaluation system in parks. The park access projects must meet the requirements of national industrial policies and industrial planning of the park. Projects that are consistent with industrial layout in the parks are encouraged and new restriction projects are strictly controlled. The comprehensive evaluation of unit land investment intensity, land utilization rate, advanced technology, security risk and pollutant control measures will be carried out for the access projects, and the investment threshold should be set reasonably for the projects such as chain extension, chain supplement and circular economy so as to lead the industrial development direction in parks. We should establish the enterprises upgrading and exit mechanism in parks, improve the comprehensive evaluation system of projects, scientifically evaluate and classify the development quality of existing enterprises in parks through indicators such as unit land sales revenue, unit land profit, energy consumption intensity, and emission intensity. We should encourage enterprises to promote transformation and upgrading as well as technological reform, and to constantly improve their development quality and level. We should promote high-quality enterprises to merge and restructure laggard capacity in parks, making space for the transformation and upgrading of parks.

(4) Establishment of the dynamic management mechanism of chemical industry parks: Provincial governments will carry out dynamic management of existing parks on the basis of completing the standard identification of chemical industry parks and concentration areas in the province. They should make overall planning of chemical industry parks in the whole province, determine the regional development priorities, and promote a new pattern of differentiated and synergetic development of chemical industry parks.

They will conduct hierarchical classification and dynamic management, formulate scientific evaluation: one batch of cultivation and pilot, one batch of optimization and promotion, one batch of reorganization and elimination. They will promote integration and optimization of park resources, and encourage proper expansion of chemical industry parks with high starting point, reasonable layout, high industrial gathering, management and industrial chain improvement, good resources and security conditions, and allowable environmental capacity; they will ask those do not meet standards to do rectification; they will cancel the chemical industry positioning for those who do not complete rectification as requested within a time limit. They will trigger resources to move to higher-quality parks and enterprises for better industrial development.

2. To promote sustainable green development

To adhere to the development concept of "six integrations", form a green development mode with the characteristics of chemical industry parks and a resource-saving and environment-friendly industrial structure, further strengthen the industrial coupling, reduce the emissions of major pollutants and toxic and harmful special pollutants significantly, so as to set up a development environment harmonious with surrounding communities.

(1) The remarkable improvement of circular construction level: to continuously promote the circular transformation of parks and reasonably construct the circular economy industry of parks. To achieve the circular links among enterprises and industries in parks; and build the "large circular system" that is shared and recycled in infrastructures, utilities and public services of parks, build the "medium circular system" in which enterprises in parks recycle energy and materials, and build the "small circular system" for energy saving, water saving and comprehensive utilization among enterprises so as to circulate industrial chain, make resource utilization more efficiently and make pollution control more centralized in parks. To encourage the cultivation of high-quality green products with energy conservation and environmental protection, high performance and high added value by cost-benefit analysis and the development process of parks. To promote intensive land use, revitalize inefficient land use, increase the renewable energy use, and promote the clean energy use.

(2) The substantial improvement of security production and environmental governance: to make overall regional security risk assessment, comprehensive risk prevention and control planning and planning environmental impact assessment based on international level, strictly formulate access requirements, and establish a negative list of security and environmental protection access; to build smart parks, establish effective environmental monitoring system and security monitoring system, cultivate or introduce professional energy conservation and environmental protection service companies, equip professional security control team, and regularly carry out comprehensive security risk inspection of hazardous chemicals and monitoring of pollution sources and environmental quality; to establish a three-level risk management and control system for plants, enterprises and parks, establish multi-level risk prevention measures for environmental pollution such as toxic and harmful gases and polluted wastewater, fire, explosion, leakage, etc., formulate a unified overall emergency plan and various emergency means in order to reduce the risk of major pollution accidents. 

(3) The deeper implementation of responsible care: chemical industry park should actively implement responsible care, sign "Responsible Care Global Charter", and establish a responsible care system with an aim to maximize the development achievements of parks shared with surrounding communities.

3. To improve the intelligent management level of chemical industry parks significantly

To promote the intelligent construction of chemical industry parks to combine public infrastructures and public services for the integration of security, environmental protection and emergency rescue. To take big data as the core and integration service as the foundation to fully promote the integration and iterative evolution of big data technology and park modernization, speed up the interconnection and open sharing of park information system and public data, so as to effectively improve the intelligent management level of parks by system planning, information orientation, reform and innovation. To promote the digital transformation of enterprises, build smart factories and workshops, thereby forming a smart chemical park with "safety and comfort, ecological and environmental protection, intelligent operation, integrated service and innovative development". 

4. To orderly promote industrial standardization in chemical industry parks

To strengthen the construction of standardization system of chemical industry parks, and further play the basic, strategic and leading role of standards in the development of parks; to give support to pilot demonstration work in chemical industry parks; to apply the system widely and integrate it deeply in various fields of park construction in a bid to effectively push park standardization up to a new level in fields of scientific and technological innovation, quality and efficiency improvement, and public services.

5. To promote the overall level of chemical industry parks higher

To construct "demonstration projects for high-quality development of chemical industry parks" under the guidance of "Opinions on High-quality Development of Chemical Industry Parks" in a timely manner. To further explore the reform of the park management system and mechanism, and shift the park construction from government-led to government-guided and market-engaged. To promote the construction of producer service system, further implement the third-party management service mode, and form a competitive mechanism. To strengthen the construction of science and technology innovation ability of parks, attach equal importance to economy and technology, regard the improvement of independent innovation ability as an important content and development direction of the park construction, strengthen the construction of public innovation platform, and promote collaborative innovation among parks, enterprises and scientific research institutions.