To what extent are China’s chemical plants aging?

3. How will China’s aging chemical plants be disposed of? China is likely to adopt a strategy of differentiated approaches and multi-faceted efforts in dealing with chemical processing facilities that are over 20 years old. By taking into account considerations related to safety, environmental protection, and industrial upgrading, it will use policy guidance, technological upgrades, and regional integration to ensure the orderly withdrawal from service or upgrading of such outdated production capacities. It is understood that some regions have formulated detailed phasing-out plans; for example, Ningbo requires that facilities whose production processes or equipment are listed in the **phasing-out catalog be phased out by the end of 2027, while production facilities that have been in operation for over 30 years, as well as pressure-type liquefied hydrocarbon spheres that have been in use for over 25 years, must be shut down by 2029. Yunnan Province plans to phase out outdated equipment in industries such as non-ferrous metals and chemicals during 2024–2025, including single-stage fixed gas generators and 60,000 tons per year ammonium phosphate production facilities. In addition, some regions encourage enterprises to use advanced technologies to upgrade old equipment; for example, Henan Xinlianxin upgraded its methanol distillation unit by adopting a heat coupling process of \"five towers with 3+3 effects\". Some companies also use microchannel reactors and continuous flow technology to replace high-risk batch processes, thereby reducing safety risks and improving efficiency. In some areas, digital and intelligent upgrades are being implemented to enable older devices to be connected to industrial Internet platforms, thereby facilitating real-time monitoring and predictive maintenance. For example, Ningbo requires safety risk assessments to be conducted on installations that are 20 to 30 years old, with classified renovations carried out and intelligent inspection as well as personnel positioning systems installed. By 2027, the target is for the rate of numerical control usage in key processes within the country’s chemical industry to exceed 85%. For chemical plants that have been in use for over 20 years, a one-size-fits-all approach is not adopted; instead, methods such as renovation and classification are used. For those plants that are still functional, their production cycle is extended to make the most of them.

4. What impact will this document have on China’s chemical industry? The impact of this document on China’s chemical industry can be roughly divided into the following aspects: First, the optimization of China’s chemical industry structure and the reduction of overcapacity will accelerate. With the release of this document, facilities that are more than 25 or 30 years old will be forced to cease operations; in particular, those used for producing products in high-pressure environments or in strong acid or alkali conditions are likely to be phased out, as such facilities that have been in use for over 20 years are expected to be eliminated. This also aligns with China’s broader trend of developing in a way that avoids excessive competition, and it is beneficial for the long-term healthy development of China’s chemical industry. Secondly, investment in technological upgrading and innovation within China’s chemical industry will accelerate. This document sets a requirement that the degree of numerical control in key manufacturing processes should reach over 85%, and policies encourage the use of microchannel reactors and continuous flow technologies as alternatives to high-risk batch processes. At the same time, efforts are being made to promote low-carbon technologies such as green hydrogen and CCUS. All these policies will drive technological upgrades and innovation in China’s chemical industry, facilitating the adoption of more efficient catalysts and intelligent control systems, which is beneficial for the intelligent transformation and high-end development of this industry. Third, the compliance costs in China’s chemical industry and the business models of these companies will undergo significant changes. This document specifies that companies must bear direct costs such as equipment testing, third-party evaluations, and technological upgrades; they can alleviate this burden through subsidies provided by the central government for such upgrades, but for some companies, this may still represent a substantial cost burden. Furthermore, small and medium-sized enterprises may face greater compliance pressures, and some may withdraw due to an inability to make the necessary adjustments. The policy also encourages mergers and reorganizations in order to optimize resources and make profound adjustments to business models, which is beneficial for the differentiated competition and large-scale operations within China’s chemical industry. The release of this document provides long-term guidance for China’s chemical industry, encouraging enterprises to extend the lifespan of chemical plants through green, low-carbon, and energy-saving upgrades. It provides intrinsic momentum for the long-term sustainable development of China’s chemical industry, driving it toward goals of inherent safety, green efficiency, and international leadership. Meanwhile, chemical companies can assess system integration as early as possible, considering technological upgrades and business model innovations in order to gain an advantage in this industrial transformation.

【Ten Years of Rapid Development in Chemical Equipment】The world’s largest single-series acrylonitrile plant, 2593-2025, was successfully commissioned at Zhenhai Refining & Chemical Co. https://bbs.hcbbs.com/thread-5698314-1-1.html (Source: Haichuan Chemical Forum)

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【Ten Years of Rapid Development in Chemical Engineering Equipment】Nanjing Guoxuan invested 12 billion yuan in a biomass gasification and steam project; the first ignition was successful. https://bbs.hcbbs.com/thread-5698512-1-1.html (Source: Haichuan Chemical Industry Forum)