Manufacturing sector steps up in Zhanjiang

New projects are expected to inject momentum into the development of manufacturing in Zhanjiang, South China's Guangdong province, local officials said.

In December, for example, the Zhanjiang city government and Guangzhou-headquartered Kingfa Science and Technology signed a memorandum of cooperation to invest in a modified plastics project.

At the signing ceremony, Yuan Zhimin, chairman of the company, said Kingfa will practice a green concept in overall development and to accelerate the project's construction. It will also promote the innovative, green and safe development of Zhanjiang's petrochemical industry.

In addition to Kingfa, many other large Chinese and foreign enterprises such as JD, China Post, Sika Davco and GLP have invested in the city and ensured the stable and healthy development of the local economy, according to the city government.

Since 2013, Donghai Island has served as the main site of Zhanjiang's manufacturing industry and introduced more than 60 major projects, with a total investment of about 196 billion yuan ($28.4 billion). Most of these projects are related to steel, iron and petrochemicals, as well as their supporting industries.

Zhongke (Guangdong) Refinery and Petrochemical becomes the first enterprise in Zhanjiang to achieve an annual output value surpassing 100 billion yuan in 2022. LIN JIANGHAI/FOR CHINA DAILY

Zhongke (Guangdong) Refinery and Petrochemical, a gigantic project on the island, processed 14.55 million metric tons of crude oil and produced 834,600 tons of ethylene in 2022, achieving a total industrial output value of 100.4 billion yuan and paying taxes of 34.8 billion yuan.

Zhongke therefore became the first enterprise in Zhanjiang with an annual output value exceeding 100 billion yuan.

Moreover, in 2022, the 10-billion-euro ($10.6 billion) Verbund petrochemical site built by German chemical giant BASF opened the first set of its devices.

The site is the first large petrochemical project solely owned by a foreign investor in China. It is expected to help establish stronger business connections between Guangdong province and Asian countries, local officials said.

In 2022, the No 3 blast furnace of Baosteel Zhanjiang Iron and Steel reached its production goals. The company also began construction of a 1-million-ton hydrogen-based shaft furnace project on the city's Donghai Island.

As a result, Zhanjiang is developing a cluster of modern port industries in southern China. In 2022, the city's GDP reached 371.3 billion yuan, an increase of 1.2 percent year-on-year. It introduced 166 projects throughout that year, with a total investment of 97.6 billion yuan. Meanwhile, the paid-in foreign capital was 4.1 billion yuan, up 37.5 percent year-on-year.

Zhanjiang's Party Secretary Liu Hongbing said the city will focus on the integration of industrialization, digitalization and green economic development in the coming years. It will also highlight the construction of large industrial parks, promoting the development of cultural tourism and the application of big data.

According to Liu, its five advanced manufacturing clusters — green steel, green petrochemicals, high-end paper making, green energy and new energy vehicles — will be supported and strengthened. The city will accelerate the development of port industries and is striving to become a demonstration zone for the high-quality development of the manufacturing industry in Guangdong and nearby regions.

Zeng Jinze, the city mayor, said Zhanjiang will focus on the real economy this year and promote the construction of a modern industrial system dominated by advanced manufacturing industry.

The city has set a GDP growth target of 6 percent this year, and 4.5 percent for the added value of industries above designated size.

By the end of the 14th Five-Year Plan (2021-25), the added value of industries above designated size is expected to exceed 130 billion yuan. Meanwhile, the proportion of the manufacturing industry in GDP will increase from 18.1 percent in 2020 to 30 percent in 2025.