Companies

State companies invest billions in Fujian

(China Daily)
Updated: 2010-09-09 11:36

East China's Fujian province has emerged as a hot destination for several giant State companies, despite the financial crisis, attracting investments worth billions of yuan.

Late last year, China's largest offshore oil producer CNOOC launched two major projects in the province - one at Ningde Industrial Zone and the other the construction of the second phase of natural gas pipeline in the West Straits Economic Zone. The latter will secure safe, stable, efficient and sustainable supply of energy to the province.

So far, CNOOC has invested 15 billion yuan ($2.2 billion) in the province, with the money going to projects such as liquefied natural gas (LNG) receiving stations, natural gas networks and LNG cold energy projects.

In 2008, China National Nuclear Corporation invested nearly 100 billion yuan on a nuclear power station in Fuqing of Fujian province as part of China's 4-trillion-yuan economic stimulus package to cope with the financial crisis.

The project followed Ningde nuclear power station, the construction of which also began the same year. This will make Fujian the only Chinese province to boast more than one nuclear power plant.

Chinese chemical conglomerate Sinochem Group spent 17.7 billion yuan to build facilities capable of deep processing 5 million tons of heavy oil annually. The project is expected to be completed next year. Sinochem will continue to expand the facilities and build oil storage units capable of processing 12 million tons of oil every year.

In October last year, the State Development and Investment Corp invested 22 billion yuan on a coal transition base and an industrial park near Meizhou Bay. That marked the start of a strategic partnership signed by the investment giant and the Fujian provincial government.

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Another State behemoth, Sinopec, has decided to invest 24 billion yuan on the second phase of an oil refinery project, designed to be capable to refine 12 million tons of oil annually. Before that, China's largest oil refiner completed the first phase of the project.

Fujian's allure became prominent after the development of the West Straits Economic Zone became a national strategy. So far, more than 60 ministries and State companies administered by the central government have vowed to support the development of the zone, of which Fujian is the major part.

Fujian became a hot investment destination also because the province has greatly improved its infrastructure in recent years. For example, it invested more than 100 billion yuan on roads, highways and ports.

Close ties with Taiwan have been another lure.

With Fujian's many ports, the province has some advantage in developing heavy chemical industry near its ports - an industry particularly attractive to Taiwan businesses.

In addition, Fujian boasts environmental advantages. The economic development speed will not bring big impact on the environment.