HOME >> INDUSTRY NEWS >> Petrochemical

Plans for Chinese Petrochemical Plant Draw Protests

Protesters on Sunday clashed with police over a planned petrochemical plant in southern China, the latest in a string of demonstrations against similar projects being built in growing proximity to urban areas.

The city of Maoming said Monday that a small group of people concerned about the proposed construction of a paraxylene facility gathered Sunday morning on the lawn in front of a government building and marched down a road. Although the demonstrations caused a traffic jam, the situation was "rational and peaceful," it said.

Later in the evening, however, a small number of people began to throw stones and water bottles in an attempt to destroy public facilities, the city said in a statement on its website. 

"The police were active immediately, handled it decisively and controlled the situation effectively," the local government said, adding that there were no casualties.

Wu Jian, 30, said he took part in the protests on Sunday morning, which were peaceful. 

However, when he returned to the protests after work, he said he saw young people destroying public areas such as bus stops and clashing with police dressed in riot gear.

Mr. Wu said Sunday's demonstrations were prompted after officials at the company in charge of the project, China Petroleum & Chemical Corp., or Sinopec, met with Maoming authorities on Friday to discuss the planned facility.

"The company came here and discussed the project without notifying residents and only met with government departments," he said.

Mr. Wu said another demonstration was planned for Monday afternoon.

Paraxylene, known as PX, is an important chemical in the production of plastics and other goods. The demonstration in Maoming recalls similar protests in October 2012 and August 2011 in the Chinese cities of Ningbo and Dalian, which also targeted PX-producing facilities. 

High levels of PX exposure can irritate the eyes and cause vomiting and respiratory discomfort, according to U.S. government and industry reports. 

Sunday's clash highlights the challenges faced by local governments, which increasingly must balance economic growth with a public that is increasingly environmentally conscious. 

On Thursday, the Maoming government released a 20-minute video online touting the benefits of the PX project. The video said the project would bring in annual tax revenue of 674 million yuan ($108 million) and 204 million in annual revenue for the local government. 

The project's risks "will be knowable, controllable and preventable," the video said, adding that the project's construction and operation will be overseen by Sinopec Maoming Co., a subsidiary of Sinopec that is a "well-established" company in the industry.

A Sinopec Maoming spokesman couldn't be reached for comment, and a representative for parent company Sinopec didn't immediately reply to a request for comment. 

The Maoming facility will have the capacity to produce 600,000 metric tons of PX a year and is part of the planned expansion of Sinopec's existing oil-refining complex, which was first built in 1955, according to the local government. The PX project, which the Maoming government says will generate annual revenue of 16.7 billion yuan, has been in the works since as early as 2006 and encountered local opposition as early as 2009, according to state media.

(wsj.com Edited by Topco)