Hualu Hengsheng uses three \"golden keys\" to unlock the \"transition lock\"”

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Hualu Hengsheng Uses Three “Golden Keys” to Unlock the Door to Transformation Author/Source: Sinochem New Network Date: November 16, 2020 Clicks: 24 In the first three quarters of this year, despite the impact of the COVID-19 pandemic and a sharp drop in product prices, Shandong Hualu Hengsheng Chemical Co., Ltd. managed to achieve operating revenues of 9.043 billion yuan, with a net profit attributable to the parent company of 1.291 billion yuan. Its sales profit margin stood at 16.79%, keeping it in the top tier of the industry. 　　Behind such impressive results, what are the secrets to Hualu Hengsheng’s growth? “It is because we adhere to technology-driven development, project-led progress, and coordinated efforts within the industrial parks; we use three ‘golden keys’ – upgrading and transformation, structural adjustment, and diversified co-production – to unlock the path to transformation.” ”Gao Jinghong, deputy general manager of Hualu Hengsheng, said. 　　Driven by technology, continuous improvement and upgrading \"As early as during the 12th Five-Year Plan period, we began phasing out outdated production lines and pursued a path of green chemistry through technological and process upgrades.\" After entering the 13th Five-Year Plan period, we invested another 7.35 billion yuan in projects aimed at facilitating the transition from old to new forms of energy, thereby pushing the chemical industry toward higher-value and more sustainable development. ”Zang Anhua, deputy chief engineer of Hualu Hengsheng, deputy manager of the production department and head of the production office, said. 　　Zang Anhua said that the process of selecting projects is actually a process of industrial expansion and structural adjustment. As early as 2014, Hualu Hengsheng decisively phased out its fixed-bed gas generation systems and synthetic ammonia production facilities with an annual capacity of 180,000 tons – systems that were still profitable but used outdated technologies and generated high levels of energy consumption. In 2015, all 4 small boilers with a capacity of 75 tons per hour and 2 boilers with a capacity of 35 tons per hour, which caused high pollutant emissions and had low thermal efficiency, were shut down. In 2016, the 2 urea production units in the old factory complex, each with an annual capacity of 150,000 tons, ceased operations. During this period, Hualu Hengsheng carried out projects for the upgrading of traditional industries and the comprehensive utilization of clean production methods, and further upgraded its gasification platform. This project employs the latest clean production technologies such as clean coal gasification, and all equipment is of the largest scale and highest efficiency available in China. 　　Upon completion of the Hualu Hengsheng project for the upgrading of traditional industries and the comprehensive utilization of clean production methods, it will enable interconnection among the three gasification platforms compared to traditional production processes. The scale, efficiency, and safety of these platforms will be significantly improved, with 154,300 tons of standard coal being saved each year, as well as a 52% reduction in waste gas emissions. 　　Driven by projects, the industrial chain is extended. On the one hand, outdated production capacities are phased out; on the other hand, opportunities arising from the shift between old and new drivers of growth are seized. By improving its technical processes, Hualu Hengsheng helps to advance the industry toward mid-to-high-end levels. 　　“During the 13th Five-Year Plan period, projects such as the restructuring of Hualu Hengsheng’s boiler operations, energy-saving upgrades to air separation systems, the upgrading of traditional industries along with the integrated use of clean production methods, the functionalization of fertilizers, and the construction of a facility capable of producing 500,000 tons of ethylene glycol per year were completed one after another. These efforts not only expanded the scale of the enterprise, adjusted its product portfolio, strengthened its technical advantages, and extended its industrial chain, but also led to the creation of three major industrial platforms for large-scale nitrogen fertilizers, hydrocarbons, and carbonyl synthesis, thereby enhancing the flexibility of its multi-product production system. In particular, an industrial layout featuring a diverse range of products and flexible co-production, with clean gasification as its core, has shaped the development direction of this industry. 　　“In our practice of flexible integrated production in a circular economy model with multiple outputs from a single input, we adjust the production structure as market conditions change; the high yield and efficiency achieved this year in the production of dimethylformamide (DMF) is a good example of this. ”said Li Haijun, the director of the chemical production workshop at Hualu Hengsheng. 　　DMF is the flagship product of Hualu Hengsheng’s organic amine product line. As a highly versatile chemical raw material, it can be used as an ingredient in polyurethane systems for the production of PU pastes. This year, Hualu Hengsheng took advantage of the favorable trends in the DMF market and expanded its production capacity by adding another facility with an annual output of 100,000 tons of DMF within just 6 months. As a result, its annual DMF production capacity reached 330,000 tons, making it the largest producer in China and the biggest supplier in the world. 　　Park collaboration and integrated industrial chain connectivity: The Dezhou Canal Hengsheng Chemical Industry Park, where Hualu Hengsheng is located, comprises 6 manufacturing facilities spread over a distance of 5 kilometers from east to west, and has become an important pillar for the development and improvement of Dezhou’s high-end chemical industry. At present, not only have the utility systems such as water, electricity, and steam been integrated across various parks, but intelligent monitoring platforms for safety and environmental protection as well as smart logistics systems have also been established, enabling \"one-click connectivity\". 　　Within the industrial park, the circulation of the industrial chain is smooth, with upstream and downstream entities acting as a \"perfect partnership\". Enterprises can carry out coordinated production among different products, systems, and facilities in response to market changes, thereby achieving a high overall utilization rate of raw materials and strong synergistic effects. At the same time, Hualu Hengsheng also adopts advanced energy-saving technologies and processes, continuously improving the \"three networks\" for raw material utilization, waste utilization, and heat energy utilization, ensuring that all waste is fully utilized. The company meets or exceeds the energy-saving targets set by Shandong Province every year, and has been the leader in terms of energy efficiency in industries such as synthetic ammonia and methanol for 7 consecutive years. 　　Currently, in the northern area of the Hualu Hengsheng Industrial Park, 4,000 workers are working day and night to accelerate the construction of projects aimed at improving the quality of adipic acid, with a total investment of 7 billion yuan. These projects related to amides and new nylon materials will be fully operational by the first half of next year, and they will become new sources of profit for the company.