Introduction

In recent years, Shandong has focused on the high-end, green, and intelligent development of its chemical industry, and has systematically launched actions for the transformation and upgrading of the industry's safety production. Through these actions, Shandong has greatly reduced low-quality and inefficient production capacity, while promoting intelligent transformation and upgrading, facilitating ecological innovation in the industrial chain, and accelerating transformation toward high-end intelligent manufacturing. In 2020, Shandong Province had 2,844 chemical enterprises above the designated size, which enabled an operating revenue of 1.9 trillion yuan, an amount accounting for 22.5% of all enterprises above the designated size across the province and 17.1% of the nationwide petroleum and chemical industries. Its economic aggregate ranked first in the country.

Representative Fields (Enterprises)

Petrochemical sector (Shandong Dongming Petrochemical Group, Wanda Holdings Group, Lihuayi Group, Chambroad Holding Group, Haike Chemical Group). Wanhua Chemical is the only enterprise in China with independent intellectual property rights for a series of isocyanate products, and its dominant product MDI has the largest production capacity and market share in the world.

Development Goals

Shandong aims to develop a world-class high-end chemical industry base, promote the implementation of the Yulong Island Refining and Chemical Integration Project, the Ethylene Project of Wanhua Chemical Group, and the UPC Project of Shandong Dongming Petrochemical Group, and strive to have more major petrochemical projects included in national plans. Shandong will also optimize and upgrade the modern coal chemical industry in Zaozhuang, Jining, and Heze, cultivate and strengthen the high-end salt chemical industry in Weifang, Dongying, and Binzhou, and vigorously develop the new chemical materials industry.

By 2025, the operating revenue of enterprises above the designated size of the chemical industry across the province is expected to reach about 2.65 trillion yuan, with an average annual growth of about 7%. The added value of the high-end chemical industry will grow by about 10% annually, accounting for more than 50% of the province's chemical industry. Eight leading enterprises with a value of more than 50 billion yuan will be fostered, including 1–2 ones with a value of more than 100 billion yuan. In addition, more than 10 high-end chemical industrial clusters of more than 100 billion yuan will be developed.

The settlement rate of chemical enterprises in parks will exceed 45%, the proportion of the output value of chemical parks and key monitoring points in the industry will increase to more than 80%, and the number of parks with operating revenue exceeding 50 billion yuan will reach 8, including 3 ones with operating revenue exceeding 100 billion yuan.

Foster Key Parks

The focus will be put on the development of the North Shandong High-end Petrochemical Industry Base, Eastern Peninsula Chemical New Materials Industry Cluster, Central Shandong High-end Special Chemical Industry Cluster, South Shandong Modern Coal Chemical Industry Cluster, Northwest Shandong Chemical Enterprise Transformation Demonstration Area, and Huanghai Port-surrounding Petrochemical Industry Zone.

Industrial and geographical advantages in different regions will be leveraged to build four petrochemical functional areas: Yantai Petrochemical New Materials Area, Weifang Petrochemical and Salt Chemical Coupling Area, Dongying Refining and Chemical Integration Area, and Binzhou Characteristic Refining and Chemical Area. Efforts will be made to speed up the development of the Integrated Project of Refinery & Petrochemical on Yulong Island and the building of the Yantai Petrochemical New Materials Area. A leading domestic integrated production base of petrochemical, salt chemical, and fine chemical industry and an important crude oil pipeline gathering and transportation hub will be created to build the Weifang Petrochemical and Salt Chemical Coupling Area. Projects including para-xylene (PX) and downstream products will be promoted to build the Dongying Refining and Chemical Integration Area. Condensate field resources will be used to expand the breadth and depth of the industrial chain, so as to build the Binzhou Characteristic Refining and Chemical Area.

Intensified efforts will be put into projects such as isocyanate integration, citral and its derivatives, hydroformylation integration, and high-end TFT liquid-crystal electronic materials. The largest production base of carbon fiber and its products in China and a well-known industrial base of advanced polymer materials in China will be built. Shandong will accelerate the vertical extension and horizontal coupling expansion of the salt chemical industry, and promote the optimization of the quality of the stock industry and the terminal appreciation of the value chain. Shandong will also enrich and improve a series of products of special silicon materials, extend the development of high-end functional chemicals containing silicon. It will develop high-end green refrigerant products, exploit downstream industries using hydrogen-consuming products such as aniline and hydrogen peroxide as raw materials, and encourage the development and utilization of hydrogen energy.

South Shandong Modern Coal Chemical Industry Cluster will be built. It will give full play to the advantages of the basic coal chemical industry and accelerate R&D and production of downstream coal-based fine chemical products. It will build a coal chemical industrial cluster, which focuses coal-based co-production and features new materials and fine chemical engineering. It will promote the coordinated development of coal chemical industry, oil chemical industry, and salt chemical industry, and establish a coal chemical industry base with circular economic characteristics and industrial structural advantages.

It will step up efforts to construct projects regarding caprolactam, adiponitrile, and ethylene downstream integration, and develop and expand new chemical materials, electronic chemicals, and other high value-added products. Huanghai Port-surrounding Petrochemical Raw Materials Distribution Area is built to be an important national logistics hub for chemical raw materials and finished products. It will advance high value-added conversion of imported petrochemical raw materials, and plan and develop refining-chemical integration projects in industrial zones. It will build a national-level port-surrounding petrochemical raw materials and products distribution area to expedite the development of a bulk petrochemical commodity trading center.