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China's PE capacity distribution from 2006-2010 (thousand t/a)

               Region              2006  2007  2008  2009   2010

North/northeast/northwest regions
  Northeast China                  XXXX  XXXX  XXXX  XXXX   XXXX
  Northwest China                   XXX   XXX   XXX  XXXX   XXXX
  North China                      XXXX  XXXX  XXXX  XXXX   XXXX
  Subtotal                         XXXX  XXXX  XXXX  XXXX   XXXX

East region
  East China                       XXXX  XXXX  XXXX  XXXX   XXXX

South region
  South China                      XXXX  XXXX  XXXX  XXXX   XXXX

Central region
  Central China                     XXX   XXX   XXX   XXX    XXX
  Southwest China                     -     -     -     -      -
  Subtotal                          XXX   XXX   XXX   XXX    XXX

Total                              XXXX  XXXX  XXXX  XXXX  XXXXX

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Editor's note: Spurred by the economic recovery, China, northeast Asia and the Middle East are leading the world's robust polyolefin demand growth. And the polyolefin production capacity in Asia also keeps expanding. China will continue to build polyolefin projects in the coming couple of years. With an increasingly mature market and improvement made in special-purpose catalysts, China has become a focus in the global polyolefin manufacturing sector. Now' FLEXPO 2010 again comes to China, bringing some latest international market information and the development trend of advanced technologies to Chinese polyolefin producers.

Capacity is expanding rapidly

China's polyolefin industry expanded its production capacity rapidly over the past XX-XX years. Its production capacity grew from less than X.X million t/a in 2001 to XX.XX million t/a in 2010, with an average annual growth rate of XX.X%, including XX. XX million t/a of PE (polyethylcne)and XX. XX million t/a of PP (polypropylene). Among the past five years, 2009 and 2010 saw the most robust growth, with a total X.XX million t/a capacity added.

By region, south China is the largest polyolefin production base, followed by east China, northwest China, northeast and north China. Capacity growth mainly came from north, northeast and northwest China over the past years. The three regions accounted for XX.XX% of the nation's polyolefin capacity in 2010, compared with XX.XX% in 2008. The share of east China and central China fell while that of south China remained flat during the period.

South China is the nation's largest PE production base, followed by east China, northwest China, northeast China and north China. East China is the nation's largest PP production base, followed by south China, north China, northwest China and northeast China. See Table X and Table X for the nation's PE and PP capacity distribution by region.

Table X China's PE capacity distribution from 2006-2010 (thousand t/a)

               Region              2006  2007  2008  2009   2010

North/northeast/northwest regions
  Northeast China                  XXXX  XXXX  XXXX  XXXX   XXXX
  Northwest China                   XXX   XXX   XXX  XXXX   XXXX
  North China                      XXXX  XXXX  XXXX  XXXX   XXXX
  Subtotal                         XXXX  XXXX  XXXX  XXXX   XXXX

East region
  East China                       XXXX  XXXX  XXXX  XXXX   XXXX

South region
  South China                      XXXX  XXXX  XXXX  XXXX   XXXX

Central region
  Central China                     XXX   XXX   XXX   XXX    XXX
  Southwest China                     -     -     -     -      -
  Subtotal                          XXX   XXX   XXX   XXX    XXX

Total                              XXXX  XXXX  XXXX  XXXX  XXXXX

Table X China's PP capacity distribution by region from 2005-2010
(thousand t/a)

      Region       2005  2007  2009  2010

North region
  Northeast China   XXX   XXX   XXX  XXXX
  Northwest China   XXX   XXX  XXXX  XXXX
  North China       XXX   XXX   XXX  XXXX
  Subtotal         2020  XXXX  XXXX  XXXX

East region
  East China       XXXX  XXXX  XXXX  XXXX

South region
  South China       XXX  XXXX  XXXX  1980

Central region
  Central China     XXX   XXX   XXX   XXX
  Southwest China     -     -     -     -
  Subtotal          XXX   XXX   XXX   XXX

Total              XXXX  XXXX  XXXX  XXXX

China's polyolefin capacity expanded fast in 2009 and 2010, with XX new or expansion projects being launched, of which X projects have a capacity of more than XXX XXX t/a, including new polyolefin projects built by Zhenhai Ethylene, the Sinopec-Exxon Mobil-Saudi Aramco joint venture (Fujian), the Sinopec-SABIC Company (Tianjin), Panjin Ethylene, Dushanzi Petrochemical, Dagang Petrochemical, Jinxi Petrochemical, and Yan'an Refining and Chemical. The new capacity also included Shenhua's coal-to-chemicals plant in Baotou. In all, China's polyolefin capacity increased X.XX million t/a during the period, with an annual growth rate of XX%. A total capacity of X. XX million t/a was added in north China, northeast China and northwest China, which accounted for XX% of the nation's total new polyolefin capacity during the period. South China and east China increased capacity by X.XX million t/a and XXX XXX t/a, respectively. No new capacity was added in central China during the period. The X.XX million t/a new polyolefin capacity include X.XX million t/a for PE (low density, high density and linear) and X.XX million t/a for PP. See Table X for China's new polyolefin capacity statistics during 2009-2010.

Table X China's new polyolefin capacity during 2009-2010 (thousand t/a)
North/northeast/northwest China

   Region             Company            Subtotal  Subtotal   PP

East China                                  XXX

             Sinopec Zhenhai                          XXX     XXX

South China                                XXXX

             Sinopec-Exxon Mobil-Saudi               XXXX     XXX

             Araraco Fujian

             Zhanjiang Dongxing                       XXX     XXX

...