Protecting ecology

Wang told government departments to pay special attention to protecting local ecology.

"Economic growth cannot be achieved at the cost of the ecology and environment," Wang said.

"Zhanjiang's environment and air quality will remain intact after the petrochemical project begins operation," he added.

In addition to further simplifying administrative procedures, the city government will continue to introduce a series of preferential policies to encourage foreign companies to invest in the zone, the mayor said.

Covering an area of more than 496 sq km, the zone includes the city's Donghai, Naozhou, Dongshantou and Nanping islands.

It is now home to more than 2,500 foreign-funded companies. Investors have come from North America, Europe, East Asia, Northeast Asia, the Middle East, as well as Taiwan and Hong Kong.

Big-name foreign companies including Coca Cola and PepsiCo have set up production facilities in the zone.

In addition to steel and petrochemicals, local authorities particularly want more foreign companies to establish production facilities in high-tech, papermaking, ocean-derived biomedicines, machinery, garments, electric appliances and beverages.

Located on Guangdong's Leizhou Peninsula facing Hainan Island, Zhanjiang has abundant resources in agriculture, aquatic production, tourism, minerals, crude oil and natural gas.

It is a major sugar cane production and seafood export center.

In 2010, the zone was rated as a province-level high-tech zone and a province-level development zone for recycled economy.

In 2011 the zone was listed by the provincial government as an important destination for the industries transferred from the Pearl River delta region.