Wenzhou is well-known for its thriving industries in leather shoes, clothing, bags, lighters, and glasses. These sectors require a significant amount of chemical raw materials and products during their manufacturing processes, creating a strong downstream demand for the chemical industry. However, Wenzhou's chemical sector has struggled in recent years. With nearly 400 chemical companies operating in the region, only about 10 of them generate over 100 million yuan in annual sales. Most of the raw materials are sourced from outside the city, and there is almost no upstream chemical industry to support local production.
In recent years, many Wenzhou-based chemical companies have started relocating to other provinces such as Shanghai, Jiangsu, Fujian, and Shandong. More than 20 companies have moved out, each with an annual production value exceeding 5 billion yuan. Despite having strong private capital, good port access, and a robust market demand, the chemical industry in Wenzhou still faces major challenges.
Land scarcity is one of the biggest obstacles. As the city develops, land becomes increasingly limited, making it difficult for chemical companies to expand or even maintain operations. The lack of a dedicated chemical park adds to the pressure, especially in areas like Lucheng District and the Tutian Industrial Zone, where numerous chemical firms are concentrated. These zones face intense environmental and safety management challenges, yet land use issues remain unresolved.
Environmental concerns also play a significant role. Many early chemical companies in Wenzhou followed an extensive growth model, leading to serious safety and pollution problems. This has left a negative impression on the public, making it hard to gain support for new projects. For example, a planned fine chemical base in Cangnan was met with strong opposition and eventually abandoned.
Despite these challenges, some industry leaders believe that Wenzhou’s chemical companies have the potential to upgrade and transform. Zhu Long, president of Wenzhou Zhongqiao Resin Chemical Industry Co., Ltd., argues that the industry should not be abandoned due to past issues but instead supported through sustainable development. He calls for a fair and reasonable environment for chemical enterprises to thrive.
While Wenzhou has a long coastline and strategic port access, its port performance has been poor. In the first half of this year, Wenzhou Port ranked last among 19 national-scale ports in cargo throughput. However, the city is now focusing on developing its chemical industry through plans like the "Wenzhou City Advanced Manufacturing Base Construction Planning Outline." Over the next few years, the government aims to establish a petrochemical-led industrial system, with new chemical material bases in areas like Nanyue Port and Cangnan Lupu.
If Wenzhou successfully integrates its local chemical industry and leverages its port advantages, it may soon attract major domestic and international petrochemical companies. With the right policies and investments, the future of the chemical industry in Wenzhou could be bright.
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