The petrochemical industry base is composed of the Shanghai Chemical Industry Park, Sinopec Shanghai Petrochemical Co., Ltd, Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd and Wujing Chemical Zone, and is basically located in the south of Shanghai. Its concept of construction and development is to optimize resource arrangement, to adjust layout structure, to emphasize biologic environment, and to raise core competition of the Shanghai petrochemical and special chemical industries as a key, to speed up development and construction of the Shanghai Chemical Industry Park and renovation of the old chemical bases, so as to strive to establish green chemical industry bases with internationally advanced processes, the biggest economic scope, world first-class management mode and production and biologic coordinative development.

　　The Shanghai Chemical Industry Park is a core zone of the petrochemical and special chemical industry base, and is at the north bank of Hangzhou Gulf, 60 kilometers away from the downtown, with planned area of 29.4 square kilometers. It is one of the biggest investment projects in China. Total investment of the first-phase projects is 150 billion yuan to critically develop petroleum and natural gas projects, synthetic new materials and special chemicals etc. petroleum deep processing products. After the chemical industry park is completed, its industrial production value will reach 150 billion yuan. According to the prospective planning, the Shanghai Chemical Industry Park will break the current planned boundaries to connect westwards to the Shanghai petrochemical to form a chemical industry belt with area of 60 km2 or so.

　　The Sinopec Shanghai Petrochemical Co., Ltd. processes oil of 8.61 million t and achieves total industrial production value of 26.59 billion yuan and sales income of 26.56 billion yuan, which is listed at the 3rd place in the Chinese top 100 chemical enterprises. The Sinopec Gaoqiao Petrochemical Co., Ltd. processes oil of 8.42 million t and achieves total industrial production value of 23.33 billion yuan and sales income of 23.77 billion yuan. The Shanghai Huayi Group Co. completes total industrial production value of 19.37 billion yuan and sales income of 19.4 billion yuan.

　　The key is zone development, project construction, improvement and mating, formation of capacity, optimization of layout and understanding the strategy. The key of structure adjustment and optimizing layout is to develop Caojing, improve Wujing and adjust Gaoqiao. The key of development strategy is to extend industrial chains and make all efforts to develop special chemical industry. It is predicted that in the coming three years the petrochemical projects under construction and to be built are about 27% of total industrial investment. It is also predicted that total production value of the petrochemical industry is 180 billion yuan in 2007 and capacity of oil processing in 2010 will reach 35-40 million t/a, and ethylene output 4 million t/a, and total production value 280 billion yuan, it will become a first-class in the world and the first in Asia modernized chemical base.