The gross value of fine chemical industry will have a 15 percent year-on-year growth in the next five years (2007-2011), according to a report by the Economy and Trade Commission of Guangdong Province.

The commission said the fine chemical industry had fast development in the past two decades, but it was plagued by mismanagement.

That is why the commission compiled the Report of Current Situation and Development of Guangdong' Fine and Special-purpose Chemicals, which will be the industry's guidebook till 2011. 

Till the end of last year, the total value of sales of petroleum and chemicals in the province was 351.4 billion yuan (US$45.6 billion), up by 32.1 percent compared to the same period of 2005, a statistic of the commission showed.

The commission also indicated the total value of sales of fine chemicals and special-purpose chemicals, which do not include medicines and chemicals for civilian daily use, was 55.6 billion yuan (US$7.2 billion) last year, growing 23.6 percent from 2005. 

The commission expressed hope that the total sales value of fine chemicals and special-purpose chemicals would hit 100 billion yuan (US$13 billion) by 2011.

The development has been maintaining a strong momentum, but it has some problems, Wen Guohui, the commission's spokesman said.

For example, Guangdong does not have enough raw materials for the fine chemicals, and has to depend on imports from other provinces. The province has few of its own fine chemical inventions because little has been done in research and development (R&D).

Moreover, the management of local fine chemical plants lacks an overall plan, which leads to a range of problems from overloaded manufactures to low-end products, the spokesman said.

In light of the existing problems, the report indicated that in order to maintain a sustainable development of fine and special-purpose chemicals, Guangdong does not have any other options but to switch their production style, renew technology, and try every means to reduce yielding cost, as well as strive for a lesser energy consumption and avoid environmental pollution.

Editor: Yan