Wenzhou is renowned globally for its leather shoes, leather goods, clothing, bags, lighters, and eyewear industries. These sectors rely heavily on chemical raw materials and products during their manufacturing processes, creating a substantial downstream market for chemicals in the region. However, the chemical industry in Wenzhou has struggled in recent years. As of now, there are nearly 400 chemical companies operating in the area. In 2004, total sales reached 16 billion yuan, but only ten of them managed to exceed 100 million yuan in revenue. Most of the chemical materials used by these companies are imported from outside the region, highlighting a lack of local upstream production capabilities.
In recent years, many Wenzhou-based chemical firms have started relocating. Over 20 companies have moved to Shanghai, Jiangsu, Fujian, Jiangxi, Hunan, and Shandong, with annual production values exceeding 5 billion yuan. This exodus raises questions about why such a strong industrial base would choose to leave.
Despite having significant advantages—such as abundant private capital, excellent port access, and strong market demand—the chemical industry in Wenzhou faces major challenges. One of the most pressing issues is land scarcity. A company owner bluntly stated, "Without land, how can we develop?" Land has become increasingly scarce as Wenzhou's economy grows, making it difficult for new or expanding businesses to find space.
The absence of a dedicated chemical park has also added to the pressure on local companies. For example, Lucheng District is home to over 40 chemical companies, while the Tutian Industrial Zone hosts more than 20. The environmental and safety management burden is immense. In 2002, the government planned to relocate all chemical companies in the Tutian area, but due to unresolved land-use issues, the plan remains unimplemented.
Environmental concerns further complicate the situation. Zhu Long, president of Wenzhou Zhongqiao Resin Chemical Industry Co., Ltd., recalls that early development focused on rapid growth, often at the expense of safety and environmental standards. This left a negative impression, even leading to public opposition when plans for a chemical base in Cangnan were proposed. Without a shift in mindset toward sustainable development, the future of Wenzhou’s chemical industry remains uncertain.
Zhu Long emphasizes that many chemical companies in Wenzhou now have the financial and managerial capacity to transition to more sustainable models. He urges society to support these efforts rather than abandon the industry due to past problems. With proper guidance and investment, the sector can evolve into a modern, environmentally responsible industry.
While Wenzhou has a long deep-water coastline, its port performance lags behind. In the first half of this year, Wenzhou Port ranked last among 19 national-scale ports in cargo throughput. Foreign trade volume also placed it at the bottom. However, there are signs of change. Following the release of the "Wenzhou City Advanced Manufacturing Base Construction Planning Outline" in 2004, the Lingang Industrial Area became a key focus for the city's industrial strategy.
The municipal government aims to build a new system of port-related industries led by petrochemicals over the next three to five years. New chemical material and fine chemical bases are being developed, with plans for large-scale petrochemical plants and advanced downstream processing in the future. Areas like Nanyue Port and Cangnan Lupu are expected to provide critical space for the chemical industry's growth.
If Wenzhou seizes this opportunity to integrate and upgrade its local chemical sector, it could soon attract major domestic and international petrochemical companies looking for strategic locations. The potential is there—if the right steps are taken.
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