Reuters: On reclaimed land on the island of Changxin near the port of Dalian, workers are putting the finishing touches on a plant that is the future of China’s refining and petrochemical industry. Here, private chemical company Hengli Group will begin testing its $11 billion oil refinery and petrochemical complex in October.
The plant is a direct challenge to China National Petroleum Corp’s (CNPC) Dalian Petrochemical Corp facility, the country’s second-largest oil refinery. That 70-year-old plant has been a cash cow for state-owned CNPC but the aging refinery has come under scrutiny after several accidents.
Hengli’s (600346.SS) high-tech complex will not only produce the fuels China craves but also the plastics and other chemicals the country will need for the future.