Yangzi Petrochemical Company Development Strategy

With the acceleration of China joining WTO's step, the competition in domestic market of petrochemical production is becoming more and more acute. The question how can Yangzi Petrochemical Corporation (YPC) be suitable to the challenge of oversea and domestic petrochemical production market, keep and develop its market seems very important. This article tries to analyze YPC's exterior environment, then can get out some conclusions that YPC maybe meet challenges and opportunities. These challenges include: the market of YPC will be reduced by the famous international corporations, YPC will be in the face of shortcoming of oil resource and it should catch up on the step of environment protection. The opportunities include the domestic demand will be increased with the development of socialism market economy, so YPC has an opportunity to enlarge its market. YPC may adopt the most advanced technology to exchange the old technology as the world petrochemical industry is being in stage of technology upgrading and production replacing. YPC can also use the oil resource in the range of the world.Meanwhile, we may find out its advantages and disadvantages through analyzing YPC's interior environment. The advantages include: YPC has the integrate capacity that it can produce oil, petrochemical and chemical fiber production, the level of its administration and technology is the more advanced than other petrochemical enterprise in domestic market. YPC can be helped by government's policy. There is a good team of employees. But there are shortcomings compared with international company, such as high cost, low efficiency, small scale, low capacity of resisting risk etc. In addition, YPC will meet shortcoming of investment.According to analyzing above, we can get the following conclusion: YPC should insist the policy of improving science technology level, changing production grade. It should stand out the core of technology and business. It should also take quality, variety and benefit as goal. YPC can realize its development strategy only through low cost enlarging, and forms the following production capacity: 8.00 MT/a oil, 1.25 MT/a ethylene, 0.85 MT/a fragrant and 1.00MT/a PTA. It finally becomes a high-science, integrated and the first 1.00 MT/a ethylene class of China petrochemical production base.