Heilongjiang's petrochemical industry has been gradually developed and expanded since the beginning of 1960s, accompanied by the development and construction of the Daqing oilfield.

Thanks to hard work over the past decades, Heilongjiang now has a developed petrochemical industry system which includes the exploitation of petroleum, petrochemicals, synthesized materials, organic chemicals, rubber processing, agricultural chemicals, fine chemicals and plastic processing as the main body.

In addition, a large batch of large-scale and competitive enterprises with a high technical level and major influence at home and abroad have been set up.

With the petrochemical industry zone in Daqing at its core, these enterprises are based in Harbin, Daqing, Qiqihar and Mudanjiang.

Thanks to its large scale and major development prospects, the petrochemical industry has become a pillar industry of the province, occupying an important status in the development of the national economy.

Heilongjiang is also one of the nationally important petrochemical industry production bases.

Since 2004, Heilongjiang has utilized advantages in terms of resources such as petroleum, natural gas and coal, sped up the construction of its technological innovation system, actively developed competitive core techniques and products, and endeavoured to build petrochemical industry base.

At present, the major projects in the petrochemical industry are progressing smoothly.

Heilongjiang Province regards the following as key to its revitalization plans: Building a petrochemical industry base, with an emphasis on increasing the concentration of oil refining enterprises; pushing forward the integration of oil refining and chemicals; extending production scales of ethylene and synthesized materials; speeding up the development of organic raw materials, chemical fertilizers and fine chemicals; processing of synthesized materials, tyres and rubber; speeding up the development of the coal chemical industry; and pushing forward the coal liquefaction project.

In 2010, the value of the petrochemical industry will reach 30 billion yuan (US$3.8 billion), an annual increase of 15 per cent.

Major projects in Heilongjiang's petrochemical industry are progressing smoothly, with a batch of petrochemical product utilization projects being implemented.

The Daqing Petrochemical Company's 600,000-ton ethylene project has been put into production, and it is actively preparing an 800,000-ton ethylene and 1 million-ton composite fertilizer project.

Construction has begun on the Daqing Refining Chemical Company's 300,000-ton polypropylene project and it will make use of the area's propylene resources for its 600,000-ton polypropylene project.

The Daqing Petroleum Management Bureau will establish a fine chemicals group and build a 200,000-ton acetic acid, 1 million-ton carbinol and 65,000-ton butanediol project.

The Harbin Petrochemical Company's 30,000-ton methylethylketone project has been put into production and preparations are under way to begin a 200,000-ton aromatic extraction project.

Heilongjiang's petroleum industry has set up a deep-processing industry chain integrating petrochemicals, organic chemicals and fine chemicals with a product fineness rate exceeding 30 per cent.

The automation, continuation, management and control of production equipment has been improved by setting up a comprehensive manufacturing and information system.

Heilongjiang also has rich coal resources, boasting variety, rich reserves and large volumes.

It aims to develop a large coal chemical industry by building an industrial park area; attracting foreign companies to build large coking chemical, coal liquefaction and gas conversion devices; and developing coke, tar, finished product oils, carbinol and deep-processing products.

Heilongjiang's pharmaceuticals industry has also gradually developed since the Sixth Five-Year Plan.

A pharmaceuticals industry system with complete categories has been established and includes the following five key items: Raw material antibiotic medicine; preparation of traditional Chinese medicine; medicine using biological techniques; medical apparatus; and medicinal packaging materials.

Heilongjiang has become one of the main production and manufacturing bases of antibiotics, water injections and powder injections of traditional Chinese medicine, as well as medicinal starch and healthcare products.

Since the 1990s, the Harbin Pharmaceutical Group has led the drugs industry, which is developing fast.

In 2000, the CPC Heilongjiang Provincial Committee threw its weight behind pharmaceuticals as the major industry to develop in the province.

The strategy included the Northern Medicine Development and Construction of Medicine Base, which was pushed forward to develop the industry quickly. In 1999, the total output value of the province's pharmaceuticals industry was 6.3 billion yuan (US$797 million), with an after-tax profit of 600 million yuan (US$76 million).

By the end of 2004, the total output value of the province's pharmaceuticals industry was 22.496 billion yuan (US$2.8 billion), with a sales revenue of 10.194 billion yuan (US$1.3 billion), and an after-tax profit of 1.504 billion yuan (US$190 million).

The Harbin Pharmaceutical Group has played a pivotal role in establishing an antibiotics production base, a chemical raw materials medicine base and a medicine intermediate base in the province.

The sale of products such as penicillin and cefalexin have positioned the province as No 1 in China.The output value of the province's drugs industry places it No 9 in China and No 1 in terms of the three Northeastern provinces. Heilongjiang's unique pharmaceuticals industry has grown and standardized.

Heilongjiang has 233 medical firms and 34 universities, scientific and research academies and institutes engaged in medical research.

Its 6,244 types of medicine have received national approval 2,440 traditional Chinese medicine products, 3,703 chemical medicines, 32 biological products and 89 other medicinal products.

Heilongjiang's pharmaceuticals industry has 116 certified businesses providing a solid foundation for its future development.

One group in the province has an output value of over 10 billion yuan (US$1.27 billion), while over 20 enterprises have an output value above 100 million yuan (US$12.7 million).

Heilongjiang has given its support to the development of a batch of small- and medium-scale private pharmaceuticals firms according to the development trends of these firms.

The companies have used this support to form a number of high-tech drugs firms such as Sunflower Pharmaceutical, Harbin Shengtai Pharmaceutical Shareholding Co Ltd, Harbin Huayu Pharmaceutical Group Co Ltd, Harbin Tiandiren Medicine Technology Development Shareholding Co Ltd, Harbin Renhuang Pharmaceutical Shareholding Co Ltd, and Mudanjiang Heibao Pharmaceuticals.

These enterprises are involved in promoting and developing the industry in the province.

Heilongjiang has established three industrial pharmaceutical parks in the province in recent years to promote the sector.

These include the Harbin Limin Medicine Technology Park, the Harbin Medicine Industry Park and the Mudanjiang Aimin Northern Medicine Technology Park.

The province has also set up preferential policies and other support measures for the industry.

The province has invested 60 per cent of industrial funds into the parks, while the Harbin Commercial Bank provided credit of 100 million yuan (US$12.7 million), mainly to support the parks.

The parks have concluded agreements with the Heilongjiang Traditional Chinese Medicine University and the Harbin Medical University to ensure the enterprises in the parks develop in the same direction of integrated production, teaching, research, finance and politics.

(China Daily 10/26/2006 page6)