China's petrochemical sector faces major restructuring as the government moves to upgrade modern facilities while phasing out outdated plants by 2029.

China's petrochemical sector faces major restructuring as the government moves to upgrade modern facilities while phasing out outdated plants by 2029. Seven government departments released a directive Friday outlining the consolidation strategy, though specific numbers of affected plants remain undisclosed. The initiative builds on outdated facility lists compiled by local governments last year, with annual rolling surveys set to identify additional facilities requiring closure. This restructuring aligns with broader efforts to reduce oil refining capacity and achieve better supply-demand balance across petrochemical industries. The move signals China's commitment to industrial modernization and efficiency, potentially affecting global petrochemical markets and supply chains as the world's largest producer reshapes its production landscape.