Xuzhou, Jiangsu has recently been recognized as one of China's 100 most promising cities for future development due to its strong potential for modern industrial growth. According to a recent investigation, the city's chlor-alkali industry shows significant room for improvement and could play a crucial role in driving economic expansion.
The chlor-alkali industry in Xuzhou has a long history, dating back nearly five decades. It has historically played an important role both within the province and nationally. In the 1980s, the city introduced ion membrane technology from abroad, marking a milestone in its industrial development. However, in recent years, the pace of progress has slowed compared to more developed regions. Currently, there are three major companies, including the national-level enterprise Jiangsu Northern Chlor-Alkali Group. The company produces caustic soda and PVC with capacities of 170,000 tons and 190,000 tons respectively. Despite this, the annual output value remains below 2 billion yuan, accounting for less than 6% of the city’s total industrial output—a figure that lags behind sectors like machinery, food, and building materials.
Xuzhou is also rich in natural resources essential for the chlor-alkali industry. Coal reserves have been confirmed at over 3.9 billion tons, with estimated reserves reaching 6.9 billion tons. Limestone reserves are about 25 billion tons, with an annual exploitation volume of 20 million tons. Rock salt reserves are estimated at 550 million tons, with additional estimated reserves of 2.1 billion tons. The quality of salt deposits is high, with salt content ranging between 70% and 80%. Additionally, the city benefits from abundant natural gas supply via the West-East Gas Pipeline, sufficient power generation capacity (over 640 million kW), and a well-developed thermal power infrastructure. With 16 thermal plants and central heating covering over 90% of the city, Xuzhou has a stable energy and steam supply. Water resources are also plentiful, with access to the Beijing-Hangzhou Grand Canal and a total water reserve of about 2.6 billion cubic meters, making it a strategic location for chemical production.
Transportation is another key advantage. Xuzhou is a major transportation hub, with the Beijing-Shanghai and Longhai railways converging here. Expressways such as Jingfu, Beijing-Shanghai, and Lianhuo pass through the city, and the nearby port of Lianyungang offers convenient sea access. As a traditional coal supplier, the city is transitioning toward cleaner energy sources, further supporting industrial growth. Its location in East China provides a strategic advantage, allowing it to serve the 13 cities in the Huaihai Economic Zone with a growing market demand for chlor-alkali products.
In recent years, Xuzhou has taken advantage of the national push for development in the East Bohai Industrial Belt, leading to rapid economic growth. In 2004, the city’s GDP reached 106 billion yuan, up 17% year-on-year, while fiscal revenue increased by 32% to 11 billion yuan. Experts estimate that for every 10,000 tons of chlor-alkali products produced, the industry can generate 220 million yuan in added value and 500–700 million yuan in output value, along with 1.5–2 billion yuan in social value. This makes the sector a powerful driver of economic growth, prompting local authorities to prioritize the chemical industry, especially chlor-alkali, as a key pillar of development.
With a long history of production and a wealth of technical expertise, Xuzhou’s chlor-alkali industry has established a solid foundation. Local universities such as China University of Mining and Technology and Xuzhou Institute of Chemical Technology contribute to research and innovation, strengthening the industry’s competitive edge. The products have established strong regional sales channels, serving areas in Jiangsu, Shandong, and Hebei, as well as the broader southeast region. Through continuous downstream product development, the industry has achieved balance in production and sales, expanding its market presence.
Looking ahead, Xuzhou has set clear development goals for the chlor-alkali industry. By 2010, the sector aims to accumulate 10 billion yuan in investment, maintain an average annual growth rate of over 18%, and reach production targets of 450,000 tons of caustic soda, 500,000 tons of PVC, and 500,000 tons of downstream products. Total commodity output is expected to exceed 2 million tons, generating 12 billion yuan in sales revenue, 4 billion yuan in added value, and 2.5 billion yuan in profits and taxes. The city also plans to develop a comprehensive industrial chain, centered around three major clusters, one core enterprise, and a full industrial chain from resource development to end products. This strategy will help build a strong, competitive, and deeply processed chlor-alkali industry.
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