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Nangang Industrial Zone Attracts the World’s Largest Chemical Companies

In a 200-square-kilometer patch of land jutting off the coast of the Bohai Sea, a center for China’s chemical industry is quietly luring the world’s largest chemical companies to the outskirts of Tianjin. The Nangang Industrial Zone—a development of the Tianjin Economic Development Area, China’s dedicated chemical industrial park under the TEDA brand—is building its reputation and drawing investment based on its well-thought-out port services, ideal location and energy-saving infrastructure.

Tianjin is developing the Nangang Zone to serve all aspects of the chemical industry, from R&D to oil refinery and downstream applications. It is scheduled to develop in two phases, creating a primary cluster of oil refineries, ethylene production and heavy chemical production in northern China. The priorities of the zone will range from basic and synthetic materials and oil refinery to engineering plastics, new chemical materials and fine chemicals. For international companies, this industrial zone is a window into one of China’s most productive petrochemical bases.

Tianjin ranks in the top three regions in terms of petrochemical and chemical derivatives output, and is home to a number of domestic and overseas giants like PetroChina, Sinopec, CNOOC, ChemChina, Cabot Chemical, Mitsui Chemicals and LG Chem. Since the zone opened in 2009, it has attracted investment from a number of international companies including Dow Chemical and Air Liquide, and it has broken ground on more than 30 key industrial projects—one of which is a 13-million-ton-per-year oil refinery jointly set up by the China National Petroleum Corporation and Rosneft Oil.

Ten-Year Plan Sees Ports, Rails and More
From 2010 to 2015, the zone will receive an investment of RMB200 billion (US$30 billion) and expects an annual industrial output value of RMB300 billion (US$45 billion). During the following five-year period, the zone will receive RMB300 billion (US$45 billion) in investment and will boast an annual industrial output value of RMB500 billion (US$76 billion). According to current plans, Nangang’s port will soon offer two basins capable of accommodating vessels of up to 50,000 tons, to be upgraded to 100,000 tons with the completion of the port. Nangang benefits from an advantageous location on the Bohai Sea. Two railways, Nangang Line One and Nangang Line Two, will connect the zone to a network of rail lines throughout China, and, together with the marshalling yard, will satisfy the cargo transport demand of various industries. The zone is connected by road to four national highways: the Nangang Highway, the Tianjin-Shijiazhuang Highway, the Tianjin-Shantou Highway and the Haibin Highway. Nangang also is located 40 kilometers from the Tianjin Binhai International Airport.

Natural Resources Abound
The zone’s location is also valuable with regard to natural resources. Tianjin has 4 billion tons of explored geological reserves, in addition to 130 billion cubic meters of natural gas reserves, an annual total of 2.5 million tons of high-quality sea salt and two oil fields that can yield 12 million tons of crude oil per year. The size and scope of the zone will allow for the development of diverse industrial chains and will minimize energy use and waste, offering its resident companies a unique experience.