Shanghai Chemical Industrial Park

    Rating     BBB
    Year of Establishment     1999
    Land Area     29.4 km2
    Location     Jinshan District and Fengxian District, Shanghai
    GDP     N.A
    FDI     N.A
    Utilized FDI     N.A
    Major Investors     BP, BASF, Bayer, Mitsubishi, Degussa, Huntsman, Mitsui, Royal Vopak, Praxair, Air Liquid, Suez
    Major Industies Encouraged     Petrochemicals, chemicals
Source: Shanghai Chemical Industrial Park

Shanghai Chemical Industrial Park (Shanghai Chemical IP) was set up in 1999 after winning approval for its construction from the Shanghai municipal government. The park covers an area of 29.4 sq km. It was the first municipal-level development zone in Shanghai to focus on petrochemicals, chemicals and fine chemical engineering after China implemented opening-up and reform policies in 1978.

The park is situated at the intersection of Jinshan District and Fengxian District in the southwestern part of Shanghai. It is only 50 km from the People’s Square, the city center of Shanghai. The A4 Highway, which runs through the zone, is linked with the Shanghai- Nanjing Expressway and the Shanghai-Hangzhou Expressway, connecting the park with other major cities in the Yangtze River Delta. The railway trunk in the zone is connected with the Pudong Railway, which leads directly to Shanghai Pudong International Airport. Shanghai Hongqiao Airport and Shanghai Pudong International Airport are a short drive of less than 40 minutes away. There is a dock for petrochemical and chemical products in the park. Shanghai Port, which was the largest port in China in terms of container throughput in 2013, is 60 km away.

Investment Climate
Shanghai Chemical IP is boosted by the development of the petrochemical and chemical industry in Shanghai, which is one of the major industries in the city. In 2013, the gross industrial output from the chemical and petrochemical companies of the designed size and above in Shanghai hit RMB 88.74 billion, increased 8.2% year on year.

The park has attracted a large number of leading firms specializing in petrochemicals, chemicals and chemical engineering, such as Germany-based BASF and Bayer, Britainbased BP, France-based Liquid Air and Netherlands-based Royal Vopak. By April 2010, the total value of foreign investments in the park had reached US$37.87 million (contracted FDI). In 2013, the park’s contractual FDI reached US$620 million.

BASF Integrated Base, which cost US$3.1 billion, is the largest project invested in by the German chemical giant outside its home country. After its establishment in 2001, the base introduced a PIC project with an annual production capacity of 11,500 tons in 2003. Then, in 2005, it opened a polyurethane coating plant with an annual production capacity of 11,000 tons and a polycarbonate (PC) project with an annual production capacity of 100,000 tons.

Shanghai Chemicals Trading Market was inaugurated in Shanghai Chemical IP in November 2008 in a bid to further facilitate the development of chemical and petrochemical industries in Shanghai.

By the end of 2012, a total of 153 enterprises has settled in Shanghai Chemical IP. It is expected that by 2015, the park’s fixed assets investment will reach RMB 130 billion, and its sales revenue will increase to between RMB 130 billion and RMB 150 billion.

Investment Cost
Winning Edge and Limitation
Winning Edge
  • Shanghai is the economic hub of mainland China.
  • Numerous large chemical firms have commenced operation in the zone.
  • The park enjoys access to a convenient transportation system and is in an advantageous geographic location.
  • The park can draw from a large talent pool.

  • Labor, land and operating costs are high.
  • The zone faces competition from other development zones specializing in petrochemicals and chemicals in Shanghai. There are several chemical industry parks in Shanghai, including Shanghai International Chemical Industry Town and Shanghai Fengxian Chemical Industrial Park.

Address:No. 201 Muhua Road, Shanghai Chemical Industrial Park, Shanghai, P.R. China 201507
Fax: 86-21-67120660
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