Multi-national oil and gas corporation ExxonMobil on Wednesday broke ground on its solely-funded USD 10 billion chemical complex in Huizhou in China, the first major foreign project to be built in the country as COVID-19 outbreak subdues.
A special "cloud ceremony" was held online with video connections linking the Huizhou Dayawan Petrochemical Industrial Park, and places in Beijing and Dallas in the US.
The complex, with a total investment of about USD 10 billion, will be built in two phases. The first phase with a 1.6 million tonne-per-year ethylene cracker and down-stream production equipment is scheduled to be completed by 2023 when construction on the second phase will begin, state-run Xinhua news agency reported.
An annual operating income of 39 billion yuan (USD 5.5 billion) and 7.3 billion yuan of taxes will be expected when the first phase reaches designed capacity.
This is the first major foreign project to be built in China after it had to shut the country for nearly three months from January following the outbreak of coronavirus in Wuhan.
The Foreign direct investment (FDI) into China fell 10.8 per cent year on year in the first quarter influenced by the novel coronavirus outbreak, according to the data from China's Ministry of Commerce.
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ExxonMobil Chairman and CEO Darren Woods in Dallas said via video link that the project reflects China's growing commitment to FDI and fostering innovation.
"All of this creates an environment that enables ExxonMobil to continue our strategic long-term investments," he was quoted as saying by Xinhua.
Guangdong governor Ma Xingrui said local governments have effectively overcome difficulties brought by the coronavirus epidemic to complete preparatory works including project approval and sea reclamation.
It took only about 18 months for such a mammoth project to kick off, which demonstrated high efficiency on the part of China, Ma said.
The provincial government said it will do whatever it can to make sure the chemical complex goes into operation by 2023.
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