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Qianxi Chemical: From \"On the Brink of Extinction\" to \"Rebirth from the Ashes\" Author/Source: Sinochem News Network Date: 2021-05-07 Clicks: 6 In 2010, a group of young people with dreams set foot on the fertile land of the Yunnan-Guizhou Plateau. It was not until June 2017, after seven years of difficulties and challenges, that Qianxi Chemical finally managed to break through those obstacles and announced the resumption of operations ； At 23:26 on May 31, 2018, the process was completed successfully with one single batch of material being used, and the company achieved four firsts in the national industry. The workers at Qianxi Chemical, who had persevered for 8 years, were witnesses to the company’s rebirth. As the largest coal-based ethylene glycol production facility in Guizhou Province, and as a leading enterprise in the \"Thousand Enterprises Transformation\" initiative, Qianxi Chemical was established, and it gradually came to the attention of the general public. Since the production of ethylene glycol began in 2018, the company has made significant progress in project advancement, team building, and internal management. In 2018, it achieved 134 days of stable operation under high loads with long-term safety ； In 2019, the annual operation rate of the facility reached 95.68%, ranking first among similar facilities within the group company; it was awarded the title of “Advanced Model Facility” by the group company” ； In 2020, the lifespan of the gasifier burner exceeded the record of 288 days of operation; even after being shut down for maintenance for two months due to the pandemic, it still managed to meet the annual production target of 280,000 tons ； The number of consecutive operating days, the average monthly output, and various unit consumption rates have all reached their best levels in history. Over these three years, the company has strengthened internal market-based evaluation systems, breaking down goals and tasks to teams, positions, and individuals to ensure that all employees participate in cost management and help achieve cost control objectives. By combining cost reduction through management efforts with that achieved through technological means, various non-productive expenses were significantly reduced; such expenses dropped by 24%, and the unit manufacturing cost in 2020 was 17.3% lower than in 2019. Strengthen system adjustment and optimization, enhance on-site inspections, eliminate potential accident risks, improve the skill levels of personnel and the emergency response capabilities of the equipment, ensure the long-term stable operation of the equipment, and achieve energy savings in the system. I will take charge of the maintenance work to reduce outsourcing costs, aiming to cut maintenance expenses by 20% in 2020 compared to 2019. At the same time, financing methods were optimized by utilizing revolving credit lines to issue bank acceptance bills, thereby reducing financing costs. Over the course of three years, 1.7075 billion yuan was raised through financing, resulting in savings of 25.9683 million yuan in financial expenses ； From 2018 to 2020, a total of 166.8735 million yuan was recovered as refunds for value-added tax credits. Companies are also working hard to improve their internal capabilities in order to enhance quality and efficiency. The company prevents all losses and waste at the source to minimize costs ； Through the gradual implementation of equipment degradation trend analysis, predictive maintenance, management of inspection in remote and difficult-to-reach areas, and the deployment of intelligent equipment inspection systems, the stability of operation of the production facility’s equipment improved significantly in 2020, with both the efficiency and quality of equipment inspections being markedly enhanced. In 2018, the monthly planned maintenance tasks for the equipment were fewer than the unplanned maintenance tasks. After the implementation of the inspection and maintenance projects in 2019, planned projects accounted for 54%, while unplanned maintenance projects accounted for 46%. The company has adopted the value orientation of \"striving for lower production costs and higher product prices,\" and it seeks to reduce costs by improving coal blending management and increasing the proportion of low-quality coal used in blending. In the first quarter of 2021, the purchase price of raw coal decreased by 11.5% compared to the same period in 2020, resulting in cost savings of 8.71 million yuan. Change the existing channels for selling ethylene glycol, increase the proportion of sales to the southwest and south China regions, and reduce the proportion of sales in areas with high transportation costs, thereby achieving an additional profit of around 100–200 yuan per ton ； By introducing foreign enterprises, byfully utilizing by-products, and enhancing the added value of surplus products. Companies go to great lengths when it comes to technological upgrades. Over the past three years, Qianxi Chemical has won 49 “innovation and entrepreneurship” awards from Guizhou Yueneng for its achievements in this field ； Twelve of them, including \"Research on Energy-Saving and Consumption-Reduction Technologies for Ethylene Glycol Production from Coal,\" \"Technological Upgrades to Improve DMO Quality,\" and \"Applications and Practices of Innovative Organizational Management Methods in the Commissioning of Qianxi Chemical Plants,\" won the first prize. A total of 45 patents have been applied for, including 20 utility model patents and 25 invention patents ； 40 acceptance notices were received (14 for utility model patents and 26 for invention patents), and 14 have been accepted (14 utility model patents). Continuously advancing the technological upgrades of existing facilities, promoting the integrated development of related industries, and fostering the construction of smart parks and intelligent factories… are the medium- to long-term plans formulated by Qianxi Chemical. The company will also, through the upgrading and renovation of existing facilities, filling in gaps, and comprehensive utilization, focus on strengthening its foundation and tapping into potential. With an eye on the company’s long-term goals and the future development of the industrial park, it will make efforts to extend the coal-based ethylene glycol production chain, increase the added value of its products, and strengthen and expand this industry. In 2021, Qianxi Chemical was designated as a provincial leading enterprise under the ‘Thousand Enterprises Transformation’ program. The company will, as before, base its operations on the principle of \"zero\" risks in terms of safety and environmental protection, focusing on ensuring the stable operation of its facilities over long periods. It will also concentrate on production and operation, technological upgrades, cost reduction and efficiency improvement, internal market-based management, project development, and adjustment of the product portfolio, with the goal of reaching a production capacity of 300,000 tons and an output value of 1.137 billion yuan. Liu Zhenfeng, the Party secretary and chairman of the company, is full of confidence for the future: during the 14th Five-Year Plan period, we will build facilities for producing 50,000 tons of dimethyl carbonate, 300,000 tons of methanol, and 150,000 tons of hydrogen peroxide, on top of the existing annual production capacity of 300,000 tons of ethylene glycol. At present, the projects for producing 50,000 tons of dimethyl carbonate and 300,000 tons of methanol have already been approved, while discussions are underway with partners regarding the project for producing 150,000 tons of hydrogen peroxide. Once these three new production lines are built, it is expected that during the 14th Five-Year Plan period, the total industrial output value will reach around 8 billion yuan. By establishing, strengthening, and optimizing industrial chains, Qianxi Chemical will be turned into a model enterprise for modern coal chemical production and management in Guizhou Province, as well as a production base for high-quality coal chemical products in the southwest region.