National strategy boosts Songmudao's ambitions

By Wang Chuanqian (China Daily)
Updated: 2009-09-10 08:41

As mission statements go, the Songmudao Chemical Industrial Base's strategy is about as direct as it comes - the plant, unashamedly, aspires to the best chemical processing facility in northeastern China.

Already designated as a key site for the implementation of the Liaoning Coastline Economic Development Plan, its ambitions were given a further boost when that plan was formally adopted as part of the national strategy on July 1 of this year.

The base, set in the mid-west of the Liaoning Peninsula, was established in October 2005. It is conveniently located among the industrial complexes of the province, with Dalian lying just 50 km to the south and Shenyang some 290 km to the north.

As well as its geographical advantages, the facility is also well placed in terms of its access to natural resources. It is based in the eastern sector of the Fuzhouwan salt field, one of the four largest salt reserves in China. The salt field produces more than 0.8 million tons of crude salt each year, more than enough to meet the base's annual requirements.

Unlike a number of other industrial complexes in China, the center has ready accessed to a number of neighboring industrial chains. These include a number of highly competitive businesses in the marine, biotechnology and information technology industries.

As part of a network of five complementary industrial chains, the base is well placed to fully achieve its regional ambitions and go on to become a player of truly national significance.

The Songmudao base is aiming to achieve its long-term goals by combining the twin tactics of integrated overall planning and a flexible operating system. As part of its development commitment, it will complete the 7.8 sq km construction of the first phase of a new industrial area by the end of this year, with the 8.2 sq km second phase coming online by 2013.

At present, the center is home to some 45 businesses, operating under contracts worth some 13 billion yuan. To date nine of the businesses have become operational, with 30 more currently under construction.

The center's management team is currently in negotiations with a number of China's leading companies - including ChemChina - about switching a number of their operations into the Liaoning facility. If successful, such a deal would see the center gaining up to 16 billion yuan in additional investment.

The chemical industry has long been the backbone of the province. By 2020, the production value of the area is estimated to have grown in value to in excess of 72 billion yuan and is scheduled to be employing more than 150,000 people.