China's Zhejiang province to be fine chemicals hub

08 March 2002 07:44  [Source: ICIS news]

SINGAPORE (CNI)—The Zhejiang provincial government is developing Shangyu, Zhejiang, China as a fine chemicals hub through the Zhejiang Shangyu Fine Chemicals Zone (FCZ) to encourage investments in the city, CNI was told.

A source from the company managing the Zhejiang Shangyu FCZ said the zone occupies 20 square km of land in the north-east of the city. It was conceived in 1998 and started taking shape in 2000.

The zone possesses basic infrastructure such as custom-built port and storage facilities, as well as roads and highways linking the zone to bigger cities such as Ningbo and Shanghai. Shangyu FCZ aims to attract companies for production of dyes, paints and coatings, cosmetics and pharmaceuticals.

So far, a total of 71 Chinese companies have started up plants or will soon commission facilities worth a total of Rmb2bn ($241m/Euro274m), and occupying 6 square km of land in the FCZ. The biggest investor is the Zhejiang Longsheng Group, which has already committed Rmb500m. The group currently operates a 55 000 tonne/year dyes facility which came onstream last year.

More companies are expected to set up plants in Shangyu FCZ, said the source. He added that his company is currently in talks with at least 20 potential investors, including foreign companies. He declined to reveal the names of the potential investors.

The source estimated that the zone would be fully occupied by 2005. There are plans to expand the FCZ to 40 square km when the current area is fully occupied, said the source.

By: Staff Reporter
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