ExxonMobil opens China's first U.S.-owned chemical complex, boosting local ethylene capacity and reflecting growing foreign investment confidence.
ExxonMobil has officially commenced operations at its state-of-the-art chemical complex in southern China, marking a significant milestone as the first major petrochemical facility in the country to be wholly owned by a U.S. company. This development underscores ExxonMobil鈥檚 commitment to the Chinese market and reflects its confidence in the world鈥檚 second-largest economy, amid China鈥檚 ongoing efforts to enhance openness and attract foreign investment.
The new facility is situated in the Daya Bay Petrochemical Industrial Park in Huizhou, Guangdong Province. The project's first phase includes a flexible feedstock steam cracker capable of producing 1.6 million tonnes of ethylene annually. Ethylene is a vital raw material used to manufacture plastics and synthetic fibers found in everyday items such as packaging materials. Additionally, the site encompasses units for producing high-performance polyethylene and polypropylene, essential to numerous industrial and consumer applications.
Jack Williams, Senior Vice President of ExxonMobil, described the complex鈥檚 inauguration as a continuation of the company鈥檚 longstanding relationship with China. He emphasized that the project would serve as a catalyst for building a strong petrochemical industry base in Guangdong, reinforcing the province's position as a global industrial leader.
Construction of the Huizhou complex began in April 2020 and comprises two phases. Notably, the project advanced from initial negotiations to breaking ground in a mere 18 months鈥攁n accelerated timeline compared to the typical five-year duration for such undertakings. Li Xingjun, Chairman of ExxonMobil (Huizhou) Chemical Co., Ltd., credited this rapid progress to Guangdong鈥檚 pro-business atmosphere, which features robust industrial infrastructure, integrated supply chains, and a highly open market environment.
Li further highlighted the significance of China鈥檚 regulatory reforms, particularly the easing of restrictions on foreign investments and institutional innovations, which have created a transparent and equitable landscape for international businesses. These changes, he noted, have bolstered ExxonMobil鈥檚 confidence in expanding its footprint in China.
Huizhou itself has emerged as a strategic petrochemical hub, home to prominent global players like Shell, BASF, and Clariant. The Daya Bay Petrochemical Industrial Park, in particular, is now recognized as one of China鈥檚 premier centers for refining and chemical production, boasting a yearly refining capacity of 22 million tonnes and 3.8 million tonnes of ethylene output.
According to Ji Hongbing, Vice President of the Guangdong Petroleum and Chemical Industry Association, ExxonMobil鈥檚 entry will not only increase China's ethylene production but also enhance the technological prowess of its petrochemical sector. This, in turn, will support critical industries such as fine chemicals, electronic materials, and biomedicine.
The launch coincides with broader national reforms, including the reduction of China's foreign investment "negative list" and the elimination of restrictions in the manufacturing sector. Additional liberalization in agriculture, healthcare, and telecom services continues to open the Chinese market to global firms. Notably, China's GDP grew by 5.3% in the first half of 2025, a figure that reinforces the market鈥檚 appeal to multinational corporations like ExxonMobil.
