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This post was last edited by I am kind on 2020-7-28 08:28. For companies, developing green technologies remains a key focus for our growth and serves as a guiding principle for innovation. KBR, based in the United States, established its first office in Beijing in the 1970s; it was also one of the first American companies to come to China after the founding of the People’s Republic of China. Starting with the first project contracting agreement, KBR has been involved in the construction of many refining and ammonia synthesis projects in New China, and can be said to have witnessed the development of China’s petrochemical industry over the past five decades. Many of the company’s refining and chemical processing technologies are at the industry leader level. Currently, numerous large-scale refining and chemical projects are being launched in China, and the refining and chemical processing technologies of local enterprises have seen significant improvements. How can they maintain a competitive advantage in an ever-changing market environment? And what is the starting point for technological innovation? Recently, Cao Ran, General Manager of KBR in China, gave an interview to our magazine’s reporters. Cao Ran, General Manager of KBR in China, seeks opportunities in new industry trends【CCN】In which year did KBR enter China, and what milestone-level petrochemical projects has it participated in? [Cao Ran] KBR entered the Chinese market in 1972; its first office was located at the Beijing Hotel. The initial team of employees was assigned directly by the Ministry of Foreign Affairs. The first contract for construction work signed between New China and an American engineering company was with KBR. Of the 13 large-scale ammonia synthesis projects carried out in the early years of New China, KBR was responsible for 8 of them. Over its 50 years in China, KBR has been involved in the construction of more than 100 industrial facilities there, primarily serving sectors such as oil refining, synthetic ammonia production, and the chemical industry. 【CCN】What is your view on the current development trends in China’s refining and petrochemical industry, and how can KBR find opportunities within it? 【Cao Ran】Overall, an excess capacity in oil refining is an undeniable reality in China, and this excess will only increase. Meanwhile, as the growth rate of the number of motor vehicles slows down and electric vehicles become more widely adopted, consumption of gasoline and diesel is likely to stabilize or even decline. However, as Chinese society evolves, the needs of the people are also changing; as a result, the demand for chemical products has shifted from low-grade products to higher-grade ones. In this process, there is an increasing demand for olefin raw materials, as well as specialty resins and high-performance materials derived from olefins. However, in terms of per capita consumption, China may still lag behind developed regions around the world such as the United States. This is also the direction of transformation for many refineries in the next step. Meanwhile, China’s entire refining and chemical industry is making rapid progress toward first-class standards. The scale of the installations is growing larger, and their overall planning and layout are becoming more scientific. We can see that in the seven major petrochemical complexes, more and more new technologies are being applied, with larger and larger facilities being built one after another. Beyond the seven major petrochemical bases, in provinces where refining is concentrated such as Shandong, many new technologies suited to local characteristics have also emerged. Throughout this process, KBR identified its own role and employed the most suitable technologies for its specific clients to help them achieve their development goals in particular fields. 【CCN】With the increasing diversification of olefin raw materials in China, what are the new trends in customers’ technical choices? [Cao Ran] There is a very clear trend toward diversification in customers’ technology choices. In the seven major petrochemical bases, olefin production still relies primarily on steam cracking, as it is a mature and conventional technology. Meanwhile, some companies seeking transformation have adopted unique development models. KBR is also making full use of its technical strengths to assist traditional oil refining companies in transitioning to emerging industries, and our technologies have been well received by users. Striving for an absolute market share in niche segments【CCN】: What technologies does KBR have in the refining and petrochemical sector? In what aspects do the advantages of these technologies lie? [Cao Ran] KBR’s approach to development and its business model differ from those of traditional engineering companies. We strive to achieve a leading position in specific niche markets; as a result, many of our technologies in the petrochemical sector are at the industry’s forefront, giving us an undeniable competitive advantage. For example, KBR’s solid acid alkylation technology, K-SAAT™, converts the processing of high-octane components using traditional sulfuric acid or hydrofluoric acid methods into a solid acid-based process, with no acid waste generated – making it an environment-friendly green technology ； The K-COT™ catalytic cracking technology for olefin production can convert light naphtha into higher-value \"dienes,\" and it can also help customers significantly upgrade their existing products ； The K-PRO™ fluidized-bed propane dehydrogenation technology, unlike traditional fixed-bed or moving-bed technologies, allows KBR’s existing FCC technology to be applied in the new field of olefin production, thereby enabling larger-scale plants. Moreover, it results in a significant reduction in floor space, initial investment, and operating costs. KBR has many such technologies. Our solvent deasphalting technology, ROSE®, holds a market share of over 90% in the global supercritical solvent deasphalting technology market, making it the undisputed market leader ； The phenol/propane technology being promoted in China also holds a market share of over 50%, making it highly competitive. 【CCN】How are these technologies being promoted in the Chinese market? What do you think is the most promising technology? 【Cao Ran】The aforementioned technologies either already have proven results in China, or are in the process of being developed, with satisfactory outcomes expected soon. If we limit the scope to the refining and petrochemical sector, I believe the most promising technologies are catalytic refining processes for producing olefins, and propane dehydrogenation technologies based on fluidized beds. These two technologies will set the trend for the entire industry; once they are widely adopted, market trends will undergo revolutionary changes. Developing green technologies is a key indicator of innovation【CCN】. The level of refining and chemical processing technology in China is continuously improving; how can KBR maintain its competitiveness in the Chinese market? [Cao Ran] A few secrets: First is strategy. The company’s board of directors and management have a clear understanding of their own position, and they go to great lengths to develop their strong markets and key technologies in order to maintain their leadership position in the industry ； Second is technical capability: it needs to be continuously refined through self-assessment and technical adjustments to achieve optimization ； Third is talent. Since China is one of KBR’s largest markets, we have established a comprehensive technical team in China to serve local clients more effectively. During the spread of the COVID-19 pandemic this year, the local teams in China played an important role. It enables the smooth progress of work when colleagues abroad are unable to come to China to provide support. 【CCN】What are the underlying principles for a company’s technological innovation? [Cao Ran] KBR’s corporate culture is “Zero Harm”. For companies, developing green technologies has always been a key focus of our development as well as a guiding principle for innovation; technologies such as solid acid alkylation are based on this intention. KBR’s solid acid alkylation technology, K-SAAT™, is highly sought after by users in North America. Last year, a hydrofluoric acid leak occurred at a refinery in Philadelphia, USA, which led to a strong demand in North America for a shift to solid acid alkylation technology. Moving forward, KBR will continue to use sustainability as a guide for technological innovation, focusing first on whether new technologies are environmentally friendly and energy-efficient, whether they can enhance production safety and reduce employees’ exposure to hazardous situations, and whether they can improve the level of automation and control. In addition, we will also keep a close eye on key markets, particularly the demand in the Chinese market. We invest considerable effort each year in researching market trends, planning in advance, and incorporating advanced technologies into our product lineup. As a provider of engineering and technical solutions, KBR is not only committed to introducing foreign technologies to China, but also to taking China’s advanced technologies and skilled engineering teams to the international market. We maintain good and stable partnerships with large domestic design institutes and engineering companies, and actively participate in their EPC projects abroad. Zero Harm is a prerequisite for all work【CCN】Has the COVID-19 pandemic that broke out this year affected KBR’s operations in China? How do you lead a team to overcome difficulties and face challenges? [Cao Ran] The impact of the COVID-19 pandemic on business is undeniable. Especially in the first quarter, the epidemic broke out in China at an early stage; as a result, owners in the Chinese market were affected earliest, but the Chinese market also recovered earliest. On the one hand, we adhere closely to the core principle of “Zero Harm” and actively respond to various initiatives in China to ensure the absolute safety of our employees; on the other hand, we make use of KBR’s strong IT capabilities to communicate with clients via remote means. The pandemic is both a crisis and an opportunity, representing a chance for improvement for companies like KBR as well as for China’s clients. Remote work has had little impact on our work. Starting from the second quarter, as the pandemic situation improved across the country, we began to carry out some on-site work and secured several large-scale orders. The China region is now nearly done with the tasks set by the headquarters, and we have very positive expectations for the second half of the year. 【CCN】What sets KBR apart from other companies in the same industry? [Cao Ran] KBR just celebrated its 100th anniversary last year. Over the course of these 100 years, as a technology provider with engineering roots, all of our technological efforts are guided by two principles: first, safety and environmental protection; second, helping clients optimize costs. Sometimes, focusing solely on optimizing technology can increase costs for the client. KBR considers things from the perspective of the general contractor, that is, how to best combine technology with the client’s practical realities in order to ensure that the client gets the greatest benefits at the lowest possible cost. On the other hand, “Zero Harm” is the premise of all our work; for KBR, ensuring zero harm to its employees is the top priority, with profits coming second. Our Beijing office has a dedicated HSE team that, together with HSE colleagues around the world, implements KBR’s efforts in safety, environmental protection, and health.