The "forgotten" city of Liaoyang is poised to finally claim its place in the booming Chinese economy. The landlocked city in the northeastern province of Liaoning has suffered from sluggish development in recent years due to its long distance from the major regional cities of Shenyang and Dalian.

Ironically, though, it is now turning that very geographic drawback to its advantage.

Liaoyang is stepping up its efforts to become a world-class center for petroleum and chemical production in what Mayor Tang Zhiguo is hailing as a "breakthrough" for its economic growth.

Tang says the city "will firmly seize" its opportunity to be part of the province's "Five Points along One Line" development strategy.

The "Five Points along One Line" plan aims to develop major industries along the coastline, all connected by one road and Tang says the city will fully support the development of other industries in the near future.

"There will be a leap in the development of Liaoyang in five years," he says.

The province's decision to include the city in its strategic planning has given a boost to Liaoyang, Tang says.

The city has mapped a plan to build a world-class production center in 10 years for the hydrocarbon resource sector that is widely used in the chemical industry.

An environmental impact evaluation and land acquisition report have been finished and construction of roads and networks to deliver electricity and gas supplies is underway.

A 1.4 million-ton petrochemical project by the Liaoyang Petroleum and Chemical Co Ltd is also in the pipeline as part of the priority of the government's work this year.

The city has also strengthened research for products related to the hydrocarbon resource sector and is working to attract more investment.

Within two years, Liaoyang expects to conclude the 20 billion yuan ($289 million) construction of a 15 sq km hydrocarbon resource plant, with an annual production output of 60 billion yuan.

Wang says this will be followed by further production plants in Liaoyang, including fine chemical products, synthetic fibers and new chemical materials.

A more ambitious vision would also see the production of the hydrocarbon base doubled by 2015, making it the biggest hydrocarbon producer in China.

Mayor Tang stresses, however, that his city's intense development of the petrochemical industry will be accompanied by measures to improve the environment.

The city is vowing to get tough by overhauling its once-thriving cement industry.

"Backward cement technology and obsolete equipment will be eliminated and factories failing to pass environmental protection inspections will be shut," he says.

(China Daily)