Thread Content
On November 9, 2021, Satellite Chemical stated on the investor interaction platform that the company’s name change from Satellite Petrochemical to Satellite Chemical was done to remain true to its original mission of developing new chemical materials; it had gradually moved upstream in order to overcome the shortages in raw materials for polymer emulsions. Now, the industrial chains for satellites C2 and C3 have been established, providing raw material support for the development of companies in the field of chemical new materials. The downstream industries are initially divided into new energy (hydrogen energy, solvents and additives for lithium battery electrolytes, POE), new materials (polyolefins, polymer materials), and fine chemicals (acrylics and esters, EO, EG), with the product portfolios of these three sectors to be further expanded in line with industrial plans. Therefore, with firm determination, efficient execution, and the vision of shaping the future through technology, the company will transform Satellite Chemical into a new-type low-carbon chemical technology company centered on integrated light hydrocarbons. Public information shows that since its establishment, Satellite Petrochemical has focused on developing an integrated industrial chain for chemicals and new chemical materials based on light hydrocarbons as raw materials. By utilizing green and low-carbon technologies, it has created a distinctive industrial chain for producing new chemical materials from clean energy sources such as ethane and propane. Satellite Petrochemical was listed on the Shenzhen Stock Exchange in December 2011, and has been operating in the capital market under the stock abbreviation “Satellite Petrochemical” for ten years now. At the time of its listing, the company’s main business was chemical production, which accounted for over 95% of its revenue. Since 2017, Satellit Petrochemical has adopted a strategy focused on using low-carbon raw materials to develop new chemical materials as part of its efforts to become a technology-driven enterprise; it has pursued the \"Double Five Plan.\" In the first phase, from 2017 to 2021, the company aimed to build an integrated industrial chain based on C2 and C3 lightweight raw materials, with the goal of making it among China’s top 500 enterprises. In the second phase, from 2022 to 2026, the output value is set to exceed 100 billion, with the goal of having the company rank among the world’s top 500 enterprises. With the successful commissioning on May 20, 2021, of the first phase of the joint production facility owned entirely by the company – Lianyungang Petrochemical Co., Ltd. – which is capable of producing 1.35 million tons of PE, 2.19 million tons of EOE, and 260,000 tons of ACN per year as part of the key project aimed at creating a low-carbon chemical materials industry chain through the integration of light hydrocarbons, Satellit Petrochemical has transformed itself into a technology-driven enterprise in the field of low-carbon chemical materials. According to the semi-annual report for 2021, Saturn Petrochemical added the sales of polyethylene, ethylene oxide, and ethylene glycol to its product portfolio during the first half of the year. For the first time, a category titled “C2 bulk chemicals business” was included in the financial reports; this business segment generated revenue of 1.252 billion yuan, accounting for 14.23% of the total revenue. With the C2 and C3 industrial chains developing simultaneously, a complete industrial ecosystem was established, and the goals set for the first phase of the company’s “Double Five Plan” have been achieved. As the satellite \"Double Five\" plan progresses in an orderly manner, the goal of establishing a industrial chain for new chemical materials made from low-carbon raw materials is being steadily achieved. By utilizing low-carbon raw materials and green manufacturing processes to achieve high conversion rates and reduce carbon emissions, it is possible to develop high-end new chemical materials. Additionally, thanks to the abundant by-product hydrogen, the company has the potential to become a major hydrogen supplier in the Yangtze River Delta region. It can also explore the prospects of the hydrogen energy industry as a new source of business growth for the company. Especially driven by the current goals of reaching carbon peak and carbon neutrality, this presents opportunities for the company’s strategic planning and implementation. ——A project integrating new materials and new energy, with 800,000 tons of PDH as its core component, has been signed. On the afternoon of March 20, 2021, a signing ceremony was held for the project aimed at producing 1.75 million tons of such integrated products per year, a project carried out in collaboration between Zhejiang Satellite Petrochemical Co., Ltd. and the French company Air Liquide. According to a statement issued by Saturn Petrochemical, the total investment planned for the new materials and new energy integration project is 11.5 billion yuan. Construction is scheduled to begin by November 2021, with operations set to start by June 2024. Specific details of the project: (1) Satellite Petrochemical Company will invest approximately 10.2 billion yuan to build new facilities within the jurisdiction of Dushan Port Area Management Committee, with an annual production capacity of 800,000 tons of PDH, 800,000 tons of butyl octanol, and 120,000 tons of neopentyl glycol, along with supporting facilities. This will also allow for the full utilization of excess hydrogen resources, thereby addressing the raw material issues related to the company’s hydrogen integration project. (2) Liquair China intends to leverage the company’s abundant hydrogen resources by establishing a facility in the area governed by the Dushan Port Area Management Committee. There, hydrogen filling stations and hydrogen liquefaction units will be built, thereby creating a strategic ecosystem for hydrogen energy development and promoting the growth of the hydrogen energy industry in the Yangtze River Delta region. In the first phase, a hydrogen filling station with an annual production capacity of 3,000 tons will be built, while in the second phase, a liquid hydrogen plant with an annual production capacity of 11,000 tons along with related facilities will be constructed. It is reported that the project covers an area of about 500 mu. Once it is operational, it is expected to generate an annual output value of around 20 billion yuan, as well as annual tax revenues of about 1.5 billion yuan; the tax revenue per mu can exceed 3 million yuan. Saturn Petrochemical has been focusing on the C3 industry chain, with early investments in acrylic acid and esters as well as a 300,000-ton/year polypropylene production facility. In 2014, Saturn Petrochemical’s first PDH plant with an annual capacity of 450,000 tons came online; in 2019, a second PDH plant with the same capacity was put into operation. Additionally, another polypropylene plant with an annual capacity of 150,000 tons was launched in Jiaxing. In the field of acrylic acids and esters, Saturn Petrochemical is one of the companies with the largest production capacity in the world. In 2020, Satellite Petrochemical signed a Project Investment Agreement with the Management Committee of Dushan Port Area in Pinghu City, Zhejiang Province. It planned to invest 600 million yuan in industrial project expansions at Dushan Port Area, focusing on projects that would enable annual production of 300,000 tons of new polypropylene materials (including the research, development, and production of modified polypropylene) as well as 250,000 tons of hydrogen peroxide (including electronic-grade hydrogen peroxide). The construction of these projects has already begun.