Hengli Group was the first to achieve development across the entire industrial chain; the Changxing Island refining and chemical project will begin operations on December 15

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Hengli Group takes the lead in achieving full-chain development; the Changxing Island refining and chemical project will begin operations on December 15. Author/Source: Date: 2018-12-14 Clicks: 8 After nearly two years of intensive construction, Hengli Group (600346)’s major project on Changxing Island in Dalian – a refining and chemical complex with an annual capacity of 20 million tons – is about to start operating. This marks Hengli Group as the first company in the industry to achieve a full-chain development model that spans from crude oil to polyester. On the evening of December 12, Hengli Co., Ltd. issued a announcement stating that the \"20 million tons per year integrated refining and chemical project,\" funded and constructed by its subsidiary Hengli Petrochemical (Dalian) Refining & Chemical Co., Ltd., has completed the construction of the plant foundations and equipment installation. The project’s utility systems and auxiliary facilities are now ready for operation, and all the preparatory work necessary before starting up the relevant units, such as production technical preparations and commissioning plans, has been completed. The company plans to commence the commissioning of units such as atmospheric and vacuum distillation units on December 15, 2018. Reporters from the Securities Daily learned that as part of the company’s major asset restructuring in 2017 and the related fundraising initiatives for investment projects, Hengli’s \"2 million tons per year integrated refining and chemical project\" has received strong support from relevant authorities; it has been included in various important documents as a project to be given priority attention, and it also serves as an important benchmark project for the new round of efforts to revitalize the Northeast region. Throughout the process, the company has been committed to advancing the implementation of this project with the goal of creating a sustainable enterprise that can last for a century. By utilizing international advanced technologies and processes, as well as bringing in top domestic construction firms, it has set high standards and strict requirements, striving to turn the Changxing Island petrochemical project into a model facility for petrochemical manufacturing on a global scale. Publicly available information shows that this integrated refining and chemical processing project has a crude oil processing capacity of 20 million tons per year. The project is centered around a catalytic reforming unit with an annual capacity of 9.6 million tons and a PX unit with an annual capacity of 4.5 million tons; it is also equipped with MTBE, isomerization, and alkylation units. The designed annual output includes 9.92 million tons of gasoline, diesel, and aviation kerosene, as well as 4.5 million tons of PX. Additionally, the project generates 1.62 million tons of chemical light oil, 970,000 tons of benzene, 640,000 tons of liquefied gas, 530,000 tons of lubricating base oil, 520,000 tons of sulfur, 430,000 tons of polypropylene, 350,000 tons of acetic acid, and 130,000 tons of heavy aromatics. This project is a key element in Hengli Group’s efforts to upgrade its production capacity structure and implement a strategic development plan for the entire polyester fiber industry chain. In the relevant announcements it issued, Hengli Co., Ltd. stated that as the refining and chemical processing projects begin operations at an accelerated pace, the company’s business activities will expand from the current areas of polyester fibers and PTA to more upstream sectors such as PX and refining. This will enable the company to become the first in the industry to adopt a full-chain development model that spans from crude oil to PX, PTA, and finally polyester. Such an approach will further strengthen the company’s upstream production capacity and its competitive advantages, help optimize and improve the structure of its business operations as well as its integrated operational efficiency, and also enhance the company’s ability to generate profits sustainably and its resilience in the face of risks.