Ethylene is a fundamental raw material in the production of synthetic fibers, rubbers, and plastics. Over 75% of petrochemical products are derived from ethylene, making it a cornerstone of the chemical industry. Experts estimate that the launch of a one-million-ton ethylene project can stimulate over 100 billion yuan in downstream industrial investment. Its long supply chain spans across multiple sectors, including textiles, automotive, electronics, construction materials, and more.
Feng Shiliang, deputy secretary-general of the China Petroleum and Chemical Industry Association, emphasizes that ethylene holds a central position in China’s petrochemical sector and serves as a key indicator of a country's industrial development level. China has transitioned from being a major importer to a global producer of ethylene. Starting with the introduction of foreign technology in the 1950s, such as the 20,000-ton ethylene plant in Lanzhou, the industry gradually developed. By the 1970s, with the installation of 30,000-ton facilities at Beijing Yanshan, China began its own path in ethylene production.
In recent decades, China's ethylene industry has grown rapidly. By 2006, the country produced 9.41 million tons of ethylene, ranking second globally after the U.S. This growth was driven by strong domestic demand, with consumption rising at an average annual rate of 16.1% over the past 15 years. According to Bai Yu from the China Petroleum and Chemical Industry Planning Institute, during the "Eleventh Five-Year Plan" period, ethylene demand is expected to continue growing, with production capacity reaching 17–18 million tons by 2010.
China is now a major player in the global chemical market, supplying products worldwide. In this sense, the country is effectively producing ethylene for the world. Reports from SRI Consulting highlight that China's ethylene industry has reached advanced global standards, with modern complexes competing even against Saudi producers.
The development of China’s ethylene industry has followed a path of "introduction, digestion, absorption, and independent innovation." This strategy has enabled the industry to scale up, reduce costs, and develop core technologies. Sinopec, the leading company in the sector, has upgraded older plants and achieved significant progress in localization. Today, over 80% of equipment is locally produced, with many reaching world-class quality.
Technological advancements have also led to breakthroughs in large-scale ethylene projects. Technologies such as cracking furnaces, polypropylene, and acrylonitrile have been successfully developed domestically. The one-million-ton pyrolysis gas compressor technology is now on par with international standards. China has also started exporting its catalysts and furnace technology, enhancing its global influence.
The localization of ethylene equipment has boosted the petrochemical manufacturing sector, fostering the growth of major enterprises like China No. 1 Heavy Machinery Group and Hangzhou Steam Turbine Plant. It has also strengthened China's ability to compete internationally.
Looking ahead, China aims to expand its ethylene capacity and establish world-class production bases. With ongoing efforts to improve technology and increase efficiency, the country is well-positioned to maintain its leadership in the global petrochemical industry. The formation of major industrial clusters in regions like the Pearl River Delta and Bohai Bay further reinforces China's role as a key player in the global ethylene market.
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