City Introduction of Shandong, China: Dongying

Major Economic Indicators (2007)

Source: Dongying Economic and Social Development Report 2007

Introduction

Dongying is seated in the northern part of Shandong Province, in the Yellow River Delta. The city neighbors Laizhou Bay to the east and Bohai Bay to the north. The Yellow River, which traverses across nine provinces, meets the Bohai Sea in the city. Dongying borders Weifang to the south, Binzhou to the west and Zibo to the southwest.

The Circum-Bohai-Sea Highway goes through the city, cutting the drive time from Bohai to Qingdao and the provincial city Jinan to less than 3 hours. The Zibo-Dongying Railway, the Jinan-Qingdao Railway and the Jiaoji Railway link the city with other major cities in Shandong Province. It takes about 3 hours to get from Dongying to Qingdao Airport, Jinan Port and Qingdao Port. Qingdao Port, the world’s seventh largest port by cargo traffic in 2007, handled 265 million tons of cargo and 9.4 million TEUs in 2007.

Dongying has rich oil and gas resources. Shengli Oilfield, the second largest oilfield in China, was discovered in Shengli, a county of Dongying. Now it covers exploration areas in Dongying, Binzhou and other cities. In 2007 alone, it produced over 27.7 million tons of crude oil. With a long coastline, Dongying also has rich aquatic resources. Over 640 species of aquatic life, such as waver, saury and various algae, have been found in the coastline along the city.

Economic Features

In 2007, the GDP of Dongying increased by 16.1% to RMB 165.8 billion, ranking eighth among the cities in Shandong. The agriculture, industry and service sectors contributed 3.7%, 76.5% and 19.8% to the city’s GDP, respectively.

The industrial value-added output from enterprises with designated size and above hit RMB 124.7 billion in 2007, of which 85.2% and 14.8 % were attributable to heavy industry and light industry, respectively.

Oil refining and processing, rubber products manufacturing, paper making, textiles and agricultural products processing are the major industries in Dongying. In 2007, the industrial value-added output from the oil refining and processing industry grew 51.9% year on year to RMB 13.3 billion, accounting for 10.7% of Dongying’s total industrial value-added output, while that from rubber products manufacturing, paper making, textiles and agricultural products processing amounted to RMB 18.7 billion, making up 15% of Dongying’s total.

The leading enterprises in Dongying include Sinopec Shengli Oilfield, Huatai Group, Keda Group, Fangyuan Metal Buttons and Wanda Group. Shengli Oilfield, a subsidiary under China’s oil giant, Sinopec, started operation in 1964. By the end of 2007, it had produced 908 million tons of crude oil and 39.1 billion cubic meters of natural gas accumulatively. Sinopec Shengli Oilfield, the second largest oilfield in China, now has an annual crude oil production capacity of 27 million tons.

Huatai Group, originating from the Dawang Paper Making Plant established in 1976, is a large paper maker in China. Its businesses range from paper making, chemical producing, and printing, to logistics and trading. In 2006, it exported 150,000 tons of paper, and its sales revenue topped RMB 10.2 billion. It became listed on the Shanghai Stock Exchange in 2000.

The foreign trade value amounted to US$2.7 billion in 2007, with a sharp rise of 41.1% over the previous year. Exports rose 25.0% to US$1.4 billion, while imports soared 64.85% to US$1.3 billion. Exports of rubber and tires accumulated to US$502 million, accounting for more than one third of the city’s total. Major export destinations include the U.S., Australia, New Zealand, Japan and the E.U..

In 2007, Dongying attracted US$198 million in contractual foreign investments, while the utilized FDI in the city rose 20% year on year to US$167 million. U.S.-based DuPont and Schlumberger have launched investments in the city. In 2005, Dupont planned an investment of US$1 billion into a Tio2 producing line in Dongying. The project is scheduled to begin operation in 2010.