Construction work on a large iron and steel project and a joint-venture petrochemical complex in Zhanjiang, a coastal city of Guangdong province, is well underway, Mayor Wang Zhongbing said.

The iron and steel project, being built by Shanghai Baosteel Group Corp, the country's largest steel manufacturer, is scheduled to start trial operations in October next year.

The project, which has so far cost 5.2 billion yuan ($849.9 million), is designed to produce 10 million metric tons of steel annually.

Construction of major facilities for coking, sintering, blast furnace operations, and cold and hot rolling will be finished this year, according to Wang.

"The project will help upgrade the country's iron and steel industry," said Wang, adding that the project will start full operations by the end of 2015.

The petrochemical complex, a joint venture of China Petroleum and Chemical Corp (Sinopec) and Kuwait Petroleum Corp, is scheduled to start production by 2017, according to Wang.

"Preparatory work, including development of underground pipelines and roads and purchasing of processing facilities will be finished this year," Wang said.

The complex is designed to process 15 million metric tons of crude oil and produce 1 million tons of ethylene annually.

Both projects are on Donghai Island, where construction of a port has also been completed, according to Wang.

"The two projects, along with a number of other big industrial projects, will greatly help the city's economic development," Wang told China Daily during the annual session of the National People's Congress in Beijing on Wednesday.

According to Wang, the city received investment of more than 37 billion yuan in industrial projects last year, up 42.2 percent year-on-year.

The second and third phases of a large paper production facility are also under construction, according to Wang. The first phase produced paper valued at 7.8 billion yuan last year.

Wang said the city's strategy to develop large industrial projects is in line with the central government's determination to better explore maritime resources.

In the Report on the Work of the Government, Premier Li Keqiang said China will intensify the planning and building of a 21st century maritime Silk Road and steadfastly promote land and marine development in a coordinated way.

"With abundant maritime resources, including natural gas, crude oil, fisheries and offshore wind, the city has unique advantages for oceanic industries," Wang said.

The central government gave approval for Zhanjiang to become a comprehensive experimental zone for developing the maritime economy in Guangdong in 2011.

The city will apply for permission to establish a comprehensive bonded port zone and a bonded logistics area, according to Wang.

"We need to accelerate development of supplementary facilities to support the large industrial projects," Wang said.

According to Wang, the city will set up trade and economic offices in Europe and the United States to boost relations.

(China Daily 03/07/2014 page16)