Guide the development of alcohol-based new materials in Lunan Chemical Industry with an innovative spirit

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Driving the Development of Alcohol-Based New Materials in Lunan Chemical with an Innovative Spirit Author/Source: Lunan Chemical Date: 2021-12-27 Clicks: 10 Looking back at the nine-year development of polyoxymethylene products, this project has grown from nothing to something significant; it has evolved from being an unknown newcomer to gaining a foothold in the industry, and from producing only lower-quality products to entering the high-end market. A series of honors have been awarded, including the Second Prize in Science and Technology from the China Coal Industry Association, the First Prize for Technical Invention at Shandong Energy Group’s first Science and Technology Conference, the Third Prize for Scientific and Technological Innovation from Huaihai, the “National Quality Inspection Stable Qualified Product” award from the China Quality Inspection Association for 2021, recognition as a famous brand product in Shandong Province, and 11 patents. These honors are not only a recognition of the technical efforts and innovations made by the polyoxymethylene technology team over the past nine years, but also a reflection of the concerted efforts of the entire company in overcoming challenges related to the transition to new forms of energy and in developing leading products in the field of alcohol-based new materials. 1. Deficits in revenue make it difficult to decide what to retain. Polyoxymethylene is an engineering plastic whose mechanical properties are closest to those of metal materials, and it is widely used in the electronics, electrical, construction, and aerospace industries. In 2012, construction began on Yankuang Lunan Chemical Co., Ltd.’s first polyoxymethylene production facility with an annual capacity of 40,000 tons; this was also the first polymer materials manufacturing project that truly stepped outside the scope of the coal chemical industry. A completely unfamiliar field, severe technical barriers, as well as the concealment of information and defects in the original process design, led to the fact that after the project was completed in 2013, it was unable to operate at full capacity or efficiency. The plant had to be shut down for maintenance after just one month of continuous operation, and its actual production capacity was only 20% of the designed level. Until 2017, it remained a source of losses for Lunan Chemical. Polyoxymethylene plants in the same industry are facing a similar situation; most have chosen to shut down their plants. Chemical companies are faced with the difficult decision of bearing the losses resulting from plant shutdowns or investing in upgrades in order to keep the plants operating. 2. Making a firm decision to continue working on technological advancements: In order to overcome technical barriers, in 2016 the chemical company decided to carry out technological upgrades. After conducting a technical risk assessment by the group company and considering the strategic priorities related to new alcohol-based materials, it was decided to proceed with upgrades to the polyoxymethylene production facility in order to improve its efficiency and output. With the strong support of the group company, the chemical company’s determination was further strengthened, and a technical research team for the polyoxymethylene production facility was established as a result. From the validation of the process route, the design and selection of key equipment to on-site implementation, every step has been carefully considered. Between 2016 and 2017, the polyoxymethylene production facility underwent its first technical upgrade; in 2017, the annual product output increased from 8,000 tons to 35,000 tons, with an operation rate of 90%. In 2017, it achieved a turnaround, moving from an annual loss of 20 million yuan to a profit of 80 million yuan. The achievements resulting from the technological upgrades in 2017 further strengthened the group company’s confidence in developing alcohol-based new materials. In 2018, the group company continued to carry out improvements to the quality of polyoxymethylene; its products were expanded from being used only in low-end applications such as zippers and bottle caps to mid-tier applications such as sheets and rods. 3 Setting sail again: further expansion of the polyoxymethylene production capacity. In China, there is a significant demand for high-end polyoxymethylene products; these products offer high profits, and over 80% of them are controlled by companies in Europe and the United States. The development of such high-end products is therefore an issue that Chinese polyoxymethylene manufacturers need to address urgently. Through school-enterprise cooperation, Lunan Chemical has carried out joint research and development of high-end modified polyoxymethylene products, pursued the domestic production of key equipment, and optimized as well as innovated process technologies. As a result, it has obtained 11 patents related to polyoxymethylene technology and developed its own innovative approach to this technology. On November 30, 2018, the construction of a project aimed at producing 40,000 tons per year of high-end modified polyoxymethylene began. The project involves 6 key pieces of equipment as well as 6 key technologies developed through independent innovation by Lunan Chemical. It was included in the first batch of major projects for the transformation of old and new economic drivers in Shandong Province, as well as in the list of **green manufacturing integrated projects. It represents an important effort by the group company and the chemical company to fully implement the provincial party committee’s and government’s decisions to accelerate this transformation, to align with the eight strategic development goals, and to promote the growth of high-end chemical material industries for high-quality development. During the project construction period, all personnel involved demonstrated a high level of responsibility and a strong sense of mission, upholding the spirit of hard work characterized by \"opening paths through mountains and building bridges over rivers\" as well as a diligent work ethic, and made every effort to advance the project’s construction, installation, and commissioning processes. During the Spring Festival in 2020, the whole country was hit by the sudden COVID-19 pandemic. Under the strong leadership of companies at all levels, the polyoxymethylene team managed to carry out epidemic prevention and control as well as maintain production and operations. Overcoming challenges such as a shortage of staff, transportation disruptions, and delays in the delivery of equipment and materials, they ensured that the projects under their responsibility were the first to resume work, doing their utmost to make up for the time lost due to the pandemic. Through the efforts of various parties, the last two long-distance equipment units of the project – the formaldehyde reactors – were transported across more than 40 cities in six provinces in South and East China to the construction site where they were installed ； The packing required for the project’s distillation tower and absorption tower was also supplied by one of the first enterprises in Hubei Province to resume operations; it was transported over 2,000 kilometers to the project site and installed as soon as possible. The various professionals involved in mechanical and electrical systems stepped in in advance to fill in the gaps, and worked together with the construction team to organize the installation work, thereby providing support for the commissioning process. Due to pandemic prevention and control measures, the German manufacturer of the core equipment, the extruder, was unable to come to the site to provide technical support; therefore, the installation and commissioning team studied the simple drawings in order to figure out how to adjust the instrument control wiring. Conversations across thousands of miles, via the cloud, represent a wonderful example of the dedication and cooperation among Chinese and German technical professionals; it is also a testament to the commitment and efforts of state-owned enterprises in overcoming challenges. During the trial operation period, the company implemented a 24-hour duty system; party members and cadres took the lead, staying on site day and night for dozens of days to oversee every aspect of the work. On June 28, the first feeding trial run of the facility was successful, producing qualified polyoxymethylene products. After more than a year of optimization and adjustments, with continuous operation for 102 days, 122 days… the continuous operation period of the second-phase polyoxymethylene plant kept setting new records. Following system maintenance on June 15, 2021, by December 23 it had reached 190 days of continuous operation, establishing the longest such record in the industry. The operating cycle of the first-phase unit also reached 102 days. Furthermore, due to the need to clean the polyoxymethylene production facilities on a regular basis, the operating rate of such facilities both domestically and internationally is ideally around 95%, while the average operating rate in China is between 85% and 90%. As the operating cycle of the second-phase polyoxymethylene plant was extended, its actual production capacity reached the designed level of 40,000 tons, with an operation rate of 100%, setting a record for operation rates in this industry. 4. Aim for high-end quality and create a high-end brand in southern Shandong. In August 2020, when the second-generation polyoxymethylene products were introduced to the market, customers reported that these products were significantly improved compared to the first generation; however, there was still room for improvement in terms of appearance quality and product stability. To this end, Liu Qiang, who was then the deputy general manager of the Chemicals Company, Party secretary and chairman of Lunan Chemicals Company, and is currently the Party secretary and general manager of Shandong Energy Chemicals Company as well as the chairman of Lunan Chemicals Company, convened a meeting on the quality of polyoxymethylene products involving the Chemicals Company, the Supply and Marketing Company, and Lunan Chemicals. “Product quality is the lifeblood for a company’s long-term survival and the core of its development. ”Liu Qiang emphasized, “True product quality is the word-of-mouth from end customers.” ” Focusing on product quality is like grasping the key to enterprise management; the process of improving product quality is also a process of strengthening enterprise management and raising its level. The chemical company established a technical task force for improving the quality of polyoxymethylene products in its second phase. Focusing on the key factors that hinder the improvement of polyoxymethylene product quality, 6 QC task groups were formed. Quality analysis meetings are held on a monthly basis to improve the product quality management system, and various measures are taken to ensure high quality standards. Hard work pays off. After a year of technical efforts, the second-generation product has achieved the set targets in terms of appearance quality, stability, color consistency rate, and customer satisfaction. It has even managed to replace imported products in high-end fields such as garden irrigation and export-oriented apparel, and is now being exported abroad. 5 Green upgrades to promote the use of domestic equipment: Given that the development of advanced new materials and equipment in China started late, its technical level is still somewhat behind that of foreign countries. Therefore, the key equipment in polyoxymethylene production facilities, such as polymerization machines and pelletizing machines, mostly relies on imports; moreover, the spare parts for these imported devices are expensive, have long supply cycles, and their critical data is kept confidential. To address the bottleneck issues related to high-end equipment and spare parts, the polyoxymethylene team focused on scientific and technological research and development. Through cooperation with domestic manufacturers of materials and equipment, key devices such as polymerization machines were successfully developed domestically and put into industrial use, thereby saving substantial costs associated with importing such equipment and contributing to the improvement of high-end equipment technology in China. The Innovation and Development Project for High-End Polyoxymethylene New Materials is carried out in accordance with the development plans set by relevant ministries and agencies. It aims to promote the development of green new material products, to achieve green upgrades across the entire production process, to break foreign monopolies and technical blockades, to facilitate breakthroughs and applications in key green manufacturing technologies, and to enhance the ability to produce major equipment independently. This project makes a positive contribution to fostering the green and sustainable development of the polyoxymethylene industry as well as to improving its international competitiveness. Postscript: Prepare thoroughly and move forward together, continuing onward to write a new chapter. Recently, the Polyoxymethylene Division, which was recently recognized as one of the top 10 safety-focused production teams in the energy group for 2021, is accelerating the progress of its pilot-scale research and development projects, thereby strengthening the company’s technical capabilities to expand its portfolio of alcohol-based new materials. At the same time, the third phase of the polyoxymethylene project has also been officially launched. Once completed, Yankuang Lunan Chemical Co., Ltd.’s production capacity for polyoxymethylene will reach 120,000 tons per year, ranking it first in the country.