China's Henan Province Targets Three Hundred-Billion-Yuan Hubs in Chemical Sector Shift

The Henan Provincial Government has released a comprehensive 'Action Plan for Enhancing the Quality and Upgrading of Henan's Chemical Industry', outlining a strategic shift towards park-based, cluster-based, specialised, and green development to achieve high-quality growth in the sector.

According to the plan, by 2027, the province aims to make significant progress in refining and extending its chemical industrial chains. A central target stipulates that chemical industrial parks must account for more than 85% of the sector's total output value. The province intends to establish at least two chemical industrial parks specialising in fine chemicals with nationally competitive advantages. Furthermore, it plans to cultivate three chemical industry clusters each with an output value exceeding 100 billion yuan, alongside fostering a group of world-class chemical enterprises.

Key projects for developing these three hundred-billion-yuan clusters have been identified. The plan mandates accelerating the construction of Luoyang's million-tonne ethylene project and its downstream supporting facilities, aiming to build the most influential high-end petrochemical cluster in central and western China. It also calls for strengthening the 'China Nylon City' initiative in Pingdingshan to cultivate a globally competitive nylon chemical cluster. Concurrently, efforts will focus on advancing Luohe's hundred-billion-yuan fluorine-silicon new materials project to foster a high-end salt chemical industry cluster.

The Action Plan further proposes reinforcing several hundred-billion-yuan industrial bases. This includes optimising the Anyang and Pingdingshan coal-coking bases by extending industrial chains through high-value utilisation of coal tar and coke oven gas, thereby increasing the chemical industry's proportion. The development of the Xinxiang coal gasification base will be strengthened to build a high-end fine chemical chain centred on synthetic gas for fertilisers, utilising coal-to-syngas processes to develop new materials. The plan also advances the Puyang new chemical materials base, aiming to consolidate its leading advantages in high-end fine chemicals like polycarbon materials, electronic encapsulation materials, and ultra-high molecular weight polyethylene.

Regarding specific sectors, the plan details key priorities. Firstly, the coal coking industry will be optimised to ensure the chemical output value at large provincial coking enterprises substantially exceeds coke output value, establishing a circular economy chain. By the end of 2025, over 30% of coking capacity must meet or exceed energy efficiency benchmark standards, with all coking enterprises achieving ultra-low emissions. Secondly, the salt (mineral) chemical sector will be strengthened by developing specific products: fluorochemicals like ultra-pure hydrofluoric acid, specialised fluorinated monomers, and fourth-generation fluorinated refrigerants; fluorinated new materials including high-quality fluororesins and high-performance fluororubbers; and advanced silicone materials such as novel organosilicon monomers, high-performance silicone oils, silicone rubbers, and silicone resins. Thirdly, the biotechnology and chemical industry will be refined by establishing a bio-based materials system using non-grain biomass like corn cobs, straw, and agricultural residues.

The Henan Provincial Government has required all relevant departments and municipal governments to enhance coordination and resource allocation to ensure the effective implementation and monitoring of these tasks.

'Sustained advancement towards high-end, intelligent, and green transformation is pivotal to achieving a value leap in Henan's chemical manufacturing sector', stated Su Dong, Executive Vice President of the Henan Petroleum and Chemical Industry Association. He emphasised that industry associations will focus on implementing the plan, acting as a 'bridge and service enabler'. This involves conveying government policy directions on optimising industry layouts and park development while gathering enterprises' practical demands on issues like technological upgrades and supply chain coordination. The association will also channel policy resources towards specific tasks such as ultra-low emission retrofits for coking and R&D of high-end fluorine-containing materials.

Simultaneously, the association will spearhead the establishment of an industrial collaboration platform. By forming a technological innovation alliance with universities, research institutions, and leading enterprises, it will address technical bottlenecks in areas like non-grain biomass utilisation and fluorine-silicon new materials, fostering collaborative innovation to accelerate the conversion of scientific achievements.

Su Dong added that the association will organise industry benchmarking activities, guiding small and medium-sized enterprises to learn from leading enterprises' experiences in building circular economy chains and intelligent production management. This is intended to support the sector's overall transformation, propelling Henan's chemical industry from a 'scale advantage' to a 'quality advantage'.