CCIP - A Favorable Place for Chemical Investors

By Lily Wang  

Chongqing, the largest city on the upper Yangtze River - the
fourth municipality directly under the Chinese Central
Government after Beijing, Shanghai and Tianjin - has become a
water, highway and air transportation hub in Southwest China,
with a strong industrial base. Chongqing Chemical Industrial
Park (CCIP), located in the Changshou District of Chongqing and
seated in the Chongqing One-hour Economic Circle, is building
a state-class recycling economic demonstrate zone. One sunny day
this March, I was pleased to interview Mr. Gou Hua, director of
CCIP here. I'm interested in its advanced management and
astonished to enjoy CCIP's blueprint.

   CCIP focuses onnatural gas chemicals, petrochemicals,
biochemicals, fine chemicals and new chemical materials.
  
   Question: Mr. Gou, I would like to know what resources CCIP
has prepared for investors.

    Gou Hua: CCIP has abundant resources, such as natural gas,
salt rock, power and our workforce. The proven reserves of
natural gas in Chongqing are around 370 billion m3. The reserves
of natural gas in adjacent northeastern Sichan province are 1.6
trillion m3, of which the proven reserves of natural gas in
Sinopec's Puguang gas field are 252 billion m3. Both Sinopec
Group and CNPC supply natural gas to CCIP, with a total capacity
of more than 4 billion m3 per year.
   The reserves of salt rock in Chongqing amount to
approximately 300 billion tons. In the Changshou District, the
proven developed reserves of salt rock reach 1.4 billion tons.
   The power transformer capacity in the Changshou District of
Chongqing is 2.78 million kVA to meet the needs of all plants.
   CCIP's resource advantages also include a skilled workforce
and improved infrastructures.
   In reference to our transport capabilities, CCIP has formed
a transport network of highway, railway and waterway. The
Chongqing-Shanghai Expressway and Chongqing- Fuzhou Expressway
are connected to CCIP. Locally, Changshou-Fuling Expressway,
Changshou-Liangping Expressway, and Chongqing-Changshou
Expressway all tie to CCIP. In CCIP, Huabei Road, Huazhong Road
and Huanan Road connect to expressways, extending to the Yangtze
River Port and the railway station.
   Passenger/goods stations of the Chongqing-Huaihua (in Hunan
province) railway are located in CCIP, with a transportation
capacity of 9.01 million tons per year now, which will be
expanded further to 10.1 million tons per year. CCIP also has
a special sub-railway for dangerous chemicals with a
transportation capacity of 1.2 million t/a at present, which
will be expanded further to 4 million t/a.
   CCIP is near the Yangtze River, along which a 3 000 ton ship
(10 000 ton fleet) can navigate from CCIP to the eastern China
market. CCIP has two berths for liquid chemicals and four for
solid chemicals now, with a throughput of 3 million t/a.  A
deep-water port, with an annual throughput of 10 million tons
is under construction, including twenty-two berths.
   CCIP is 50 kilometers away from Chongqing Jiangbei
International Airport, approximately a 40 minutes drive.

  Question: From an investor's point of view, how is the market
potential for Chongqing?

  Gou Hua: Simply speaking, Chongqing is one of the most
important industrial base cities in China, with four large
industries including automobile/motorcycle, machinery
manufacture, resources processing and high new technology. At
the same time, Chongqing links to the eastern China market and
the southern China market by the Yangtze River "Golden Waterway",
with a significant market potential. As the Development of
Western China goes forward, the economy in western China will
grow rapidly. In addition, the economic aggregate of Sichuan
province, Chongqing, Hunan province, Hubei province, Jiangsu
province, Jiangxi province, Zhejiang province, Anhui province
and Shanghai, all along Yangtze River, accounts for
approximately 41% of the total in China.

  Question: I would like to know how CCIP was developed.

  Gou Hua: When CCIP was established at its start, we set up the
"five integrations concept," which is the Integration of Product
Project, Integration of Public Utilities, Integration of
Environment Protection, Integration of Logistics
Transportation and Integration of Administrative Services.
   As for energy-saving, environment protection and sustainable
development, CCIP is planned to be recycling economic park, with
a close relationship of production facilities, with reclamation
and reuse of byproducts.
   CCIP has a "utility island" with unified programming,
centralized construction, unified administration and unified
supply, through which companies can be provided civil and
industrial water, electricity, stream, natural gas and
industrial gases with low cost and high efficiency.
   CCIP adopts harmless techniques and clean production
processes, conducting project evaluation of influences on
environment. The civil and industrial castoff and sewage are
collected separately, and each is centrally disposed. We also
practice unified management and automatic monitoring to achieve
ecological balance.
   CCIP has professional storage and transportation companies
now, with chemicals warehousing, liquid chemicals tanks and
special pipelines, to serve the firms in CCIP.
   CCIP practices the operation mechanism of "closed management,
open business" and provides the one-line services of "one-stop
approval and coordinated services" as well as a designated
person serving each plant.

  Question: When the chemical industry is mentioned, we often
think of pollution and accidents. Mr. Gou, how do you look at
EHS (environment, health and safety) and sustainable
development for CCIP?

  Gou Hua: We always put EHS and sustainable development in a
strategic position. CCIP is committed to building truly
state-class recycling economic demonstration park, through
emission of pollutants and reuse of byproducts, through reduced
illnesses and injuries, through reduction in energy consumption
and through improved productivity. CCIP has formed management
departments for EHS and companies in CCIP are required to
establish the departments for EHS, to promote the sustainable
development of CCIP.

  Question: What preferential policies does CCIP formulate?

  Gou Hua: A company in CCIP enjoys many preferential policies,
such as financial & taxation, land usage and administration
charges. We sincerely welcome all investors from China and
abroad to contact with us.
   
Thirty-five companies are located in CCIP now. Chongqing Xinfu
Chemical Company Ltd., a wholly-owned subsidiary of Zhejiang
Xinfu Pharmaceutical Company Ltd. (SZ: 002019), spent only three
months from survey to breaking ground for a new plant here. Why
is it building a new plant in CCIP so fast? Guo Shengliang,
Director of Chongqing Xinfu answered, "The one of the reasons
is CCIP's advanced management and good services, second is
abundant natural gas resources and third is the reduction of
transportation cost," he commented. "We pr