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Henan Energy Chemicals: Multiple Enterprises Working Together to Ensure Supply and Production – Part 3 of the series “Maintaining Stability in the Chemical Industry Amid the Pandemic”. Author/Source: Sinochem News Network. Date: July 8, 2022. Clicks: 45. This year, faced with the complex and severe challenges posed by the COVID-19 pandemic and the arduous task of maintaining production, the enterprises under Henan Energy Chemicals Group have risen to the challenge by working together and taking various measures to ensure supply and stabilize sales. The production of key chemical products such as methanol, acetic acid, ethylene glycol, 1,4-butanediol (BDO), polyethylene terephthalate (PET), compound fertilizers, and methylamine has continued to increase, while sales have seen a significant rise compared to the previous year. From January to May, Henan Energy Group achieved operating revenue of 49 billion yuan and invested 977 million yuan in technology. Among them, the chemical industry segment achieved 61.70% of its annual revenue target, representing a year-on-year increase of 21.54%. Relying on nothing, ensuring the stable operation of the \"lifeline\" – To ensure that efforts in epidemic prevention and control as well as safe production are both carried out effectively, the various chemical parks under Henan Energy Group have taken proactive actions to carry out comprehensive technical upgrades aimed at maintaining the stable operation of their facilities. Henan Energy, Chemicals and New Materials Company elevates its political awareness, strengthens responsibilities regarding safe production, urges various chemical parks to properly maintain the operation of their facilities, proactively identifies and addresses potential risks, and thus effectively safeguards the \"lifeline\" of safe production within the company. Henan Longyu Coal Chemical Co., Ltd. is vigorously advancing technological upgrades aimed at saving energy and reducing consumption, as well as improving quality and efficiency. After the completion of the technical upgrade project for the ethylene glycol high-temperature condensate at this company, significant energy-saving effects were achieved, along with considerable economic benefits. It is possible to save 16–20 tons of low-pressure steam per hour. Moreover, through system optimization and measures such as shutting down steam-driven feed pumps, it is possible to save more than 300 tons of coal fuel per day, over 30,000 kWh of electricity, and 450,000 yuan in production costs, all while ensuring the stable full-load operation of the downstream system equipment. Innovative approaches to maintaining the supply \"security line\": During the pandemic prevention and control period, the companies under Henan Energy actively overcame difficulties such as shortages in coal supply and high levels of product inventory caused by traffic restrictions. By adopting a wartime mindset and coming up with innovative solutions, they managed to strengthen the supply and sales \"security line\". Through communication and coordination with the group company, local authorities, and other parties, Henan Energy, Chemicals and New Materials Company has actively implemented various measures to combat the pandemic, ensure supply, and stabilize sales. It has assisted enterprises located throughout the province in obtaining permits for the procurement of necessary supplies, and has coordinated the use of transportation resources such as road and rail transport to ensure a steady supply of raw materials such as coal needed for production. In overall, there has been a simultaneous focus on pandemic control and on maintaining supply and stable sales. According to Han Lianguo, Party Secretary and Chairman of Anhua Group Company, the company was the first to change its approach to external sales by making full use of commodity trading platforms. It shifted the power to decide on product sales and set prices from traditional clients to the market and suppliers, and was also the first to adopt an online bidding sales model, thereby achieving \"dual innovation\" in both its business model and operational methods. In the first quarter, the materials and products submitted by Anhua Group and its affiliated companies through the platform were all sold after intense bidding by 4 bidding parties; the transaction prices for several varieties reached record highs, with the highest premium amounting to 3,700 yuan per ton, and the highest premium rate per transaction approaching 30%. Henan Kaixiang Fine Chemicals Co., Ltd. is actively promoting the \"Internet + sales\" approach, tapping into the potential of online sales through online auctions and offline comparisons, thereby steadily improving the sales volume of its auxiliary products. Henan Longyu Coal Chemicals Co., Ltd. took advantage of its geographical location to implement a train container transportation plan, achieving a record high of 9,327 tons of coal unloaded in a single day, which helped to alleviate the supply pressures related to coal. Hebi Coal Chemicals Co., Ltd. promptly activated emergency plans for the road transport and container transport of raw coal, coordinating closely with departments responsible for road management, epidemic control, and traffic regulation, and achieved a 100% completion rate in its plans for purchasing large quantities of raw materials. Bringing resources from the east to the west to drive transformation – the “development pathway” This year, in order to minimize the losses caused by the pandemic, Henan Energy Group has implemented an industrial development strategy of bringing resources from the east to the west, thereby accelerating the implementation of a number of innovative, strategic, and leading projects related to the transformation and upgrading of chemical new materials. Leveraging its existing four chemical industrial parks located in Puyang City, Yima City, Yongcheng City, and Hebi City, as well as its industrial infrastructure, Henan Energy Group works together with local authorities to attract high-end chemical enterprises from the eastern coastal areas through investment incentives and encourage them to stay there. The group is actively pushing forward with reforms aimed at establishing a mixed-ownership structure for these enterprises. It also invites domestic high-tech companies such as Meirui New Materials, SINOMACH Group, and Ruibai Chemical to act as strategic investors, so as to collaborate on the development of the chemical new materials industry. To alleviate the pressure resulting from limited resources in the mainland due to pandemic control measures, Henan Energy Group has actively expanded its operations outside the province, transferring some of its ethylene glycol production facilities and other similar plants to the resource-rich western regions through a strategy of moving westward. Bai County and Kuche County in southern Xinjiang are rich in mineral resources such as coal, natural gas, and oil. Focusing on the development of a comprehensive utilization base for coal, oil, and gas resources, Henan Energy Group continues to refine its presence in this region, with its industrial scale growing ever larger. Currently, Henan Energy Xinjiang Company operates key mines in the Kubyai area, including the Kuiji Mining Mine, Yushuling Coal Mine, and Yushuquan Coal Mine. It also has the Zhongtai Coal Coking Plant, which has a coking capacity of 1.9 million tons per year and a methanol production capacity of 200,000 tons per year. Xinjiang Baicheng Longyu New Materials Co., Ltd., which is under Henan Energy, is utilizing the high-quality resources available in the western region to develop high-end coal chemical projects. It plans to build facilities with an annual production capacity of 1.5 million tons of coking products, 200,000 tons of ethylene glycol, and 200,000 tons of BDO; efforts are currently being made to accelerate the preliminary preparations for these projects.