Xuzhou, Jiangsu has recently been recognized as one of China's 100 cities with the greatest potential for development, thanks to its favorable conditions for modern industrial growth. According to a recent investigation by a reporter, the city's chlor-alkali industry holds significant room for improvement and development.
The chlor-alkali industry in Xuzhou has a long history spanning nearly five decades and has played a crucial role in both the province and the national economy. In the 1980s, the city introduced ion membrane technology from abroad, marking a major advancement. However, in recent years, the pace of development has lagged behind more advanced regions. Currently, there are three key companies, including the state-owned enterprise Jiangsu Northern Chlor-alkali Group. The main products include caustic soda and PVC, with production 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, which is much lower compared to sectors like machinery, food, and building materials. This highlights the industry’s relative weakness despite its resource advantages.
Xuzhou is 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 amount to 25 billion tons, with an annual extraction of 20 million tons. Rock salt reserves are over 550 million tons, with estimates of 2.1 billion tons. These salt deposits have high purity, thick layers, and stable formations, making them ideal for chemical production. Additionally, the city benefits from abundant natural gas via the West-East Gas Pipeline, a sufficient power supply with thermal capacity exceeding 640 million kW, and a well-developed water supply system, including proximity to the Beijing-Hangzhou Grand Canal, offering about 2.6 billion cubic meters of water resources annually. These factors give Xuzhou a strong competitive edge in the chlor-alkali sector.
In terms of development potential, Xuzhou offers convenient transportation networks, with major railways and highways converging in the city. It also serves as a traditional coal base and has shifted toward electricity and new energy sources. Its strategic location in East China provides access to the Huaihai Economic Zone, where the demand for chlor-alkali products is growing. Recent economic growth has been impressive, with GDP reaching 106 billion yuan in 2004, a 17% increase year-on-year, and fiscal revenue rising by 32%. Experts estimate that every 10,000 tons of chlor-alkali products can generate 220 million yuan in added value and 500–700 million yuan in output, contributing significantly to the local economy. As a result, the government has prioritized the chlor-alkali industry, aiming to establish it as a pillar of the regional economy.
With a long history of production and a wealth of experience, Xuzhou’s chlor-alkali industry has developed strong technical capabilities and human resources. Local universities, such as China University of Mining and Technology and Xuzhou Institute of Chemical Technology, support research and innovation in the field. Over the years, the industry has built solid sales channels across Jiangsu, Shandong, and Hebei, and has expanded into the broader southeast region. Through continuous downstream product development, the industry has achieved balance between production and sales, enhancing its market competitiveness.
To further boost growth, Xuzhou has outlined a forward-looking strategy, focusing on technological advancement, industrial chain extension, and the establishment of leading enterprises. The goal is to invest 10 billion yuan by 2010, achieving an average annual growth rate of over 18%, with production targets including 450,000 tons of caustic soda, 500,000 tons of PVC, and 500,000 tons of downstream products. The city aims to reach sales revenue of 12 billion yuan and create 4 billion yuan in added value, forming a competitive industrial cluster.
In terms of layout, the "311" model has been implemented: three industrial clusters, one integrated industrial chain, and one core enterprise. Key areas include the Xujiao Beijiao Chemical Park, Peixian Chemical Park, and Xinyi Chemical Park. By combining coal, electricity, and alkali resources, the city aims to build a strong industrial "aircraft carrier" that will drive sustainable growth in the chlor-alkali sector.
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