Discussion on Several Issues in Equipment Update and Renovation

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Equipment renewal and transformation are highly policy-driven, cover a wide range of aspects, and involve numerous issues; therefore, this textbook cannot delve into them in depth. Only a few issues that are closely related to the operation of the device will be discussed. 1. Equipment renewal and technological upgrades should aim to improve economic efficiency. Enterprises should have a development plan for their production direction and scale, which should remain relatively stable. **The policy for developing the national economy has shifted to an inward-oriented approach. For a company as well, it should adopt an internal development approach, shifting its focus from expansion, technological upgrades, and new projects to researching and improving its technical capabilities in order to enhance economic efficiency. That is, with a relatively stable production scale, new technologies and equipment are continuously adopted, and old equipment with outdated technology is replaced, in order to increase production, expand capacity, reduce consumption, lower costs, and achieve better economic benefits. II. It is necessary to formulate practical plans for equipment renewal and upgrading. At present, old enterprises account for a large proportion in businesses, and the task of upgrading the old industrial bases in the Northeast is particularly arduous. **Since it is not possible to invest a large amount of money in a short period of time, it is necessary to formulate a practical, forward-thinking plan that can be achieved through effort, in line with the **overall guidelines and under the guidance of the relevant authorities, taking into account the actual conditions of the enterprise, and to implement this plan in phases. The focus of planning is to create favorable production conditions and strive for safe and civilized production, which is a principle that enterprises must adhere to. In other words, it is to create favorable working conditions and necessary safety measures for employees, in order to ensure their health and meet environmental protection requirements. The focus of transformation during a certain period should be highlighted. The focus of equipment renovation is on the technical upgrading or replacement of a company’s key equipment. For example, in the chlor-alkali industry, graphite electrolyzers were replaced by metal-anode electrolyzers in the early 1980s; the equipment sizes remained similar, production could double, energy consumption was reduced by 5%, the service life of the equipment was extended, and maintenance work was reduced, resulting in excellent economic benefits. Currently, efforts are being made to upgrade the caustic soda distillation process in order to reduce steam consumption. Once these two types of equipment in the chlor-alkali industry are upgraded, the level of equipment sophistication takes a significant step forward toward modernization. The gas generators, compressors, and synthesis towers in fertilizer plants will be the focus of technical upgrades for medium and small-sized fertilizer plants; as the performance of these equipment improves, so does the overall equipment level of fertilizer manufacturing enterprises. III. Proper and appropriate selection of equipment: Given that China’s economy is still relatively underdeveloped and there is a large labor force, careful consideration should be given to determining which technologies to use for upgrading and modernizing existing technical equipment. We believe that the first thing to emphasize is the selection of appropriate technologies, namely those that offer good economic returns, require low investment, and generate high profits. Therefore, our technology policy should be determined based on the principle of combining advancement, applicability, and cost-effectiveness. Advanced technology refers to the technologies that play a leading role in contemporary production development, and it has a concept of era. Applicable technology refers to the technology with the best economic efficiency among the various technologies that can be used to achieve a certain goal under specific socio-economic conditions. The same technology can yield good economic results under certain socio-economic conditions, but not under other socio-economic conditions. There are significant differences among various enterprises; while adopting advanced technologies is common practice, such efforts encounter limitations in terms of equipment manufacturing capabilities, technical expertise, and investment. Therefore, we should adopt a policy of having multiple levels of technology coexist, and select advanced technologies that suit our company’s technical and economic conditions based on its actual situation. Before carrying out equipment upgrades, enterprises need to stay informed about technological developments and conduct thorough research. Special attention should be paid to the following issues. ①In recent years, enterprises have introduced a large number of devices, including many imported as individual units. Generally speaking, the technology behind these devices is quite advanced and suitable for China’s current conditions; therefore, efforts should be made to absorb and adapt this technology. ②It is necessary to actively learn from the effective major technological innovation achievements of peer organizations in the same industry. Technical exchanges within the same industry should be strongly promoted. ③Actively adopt the research results, as well as new processes and equipment, from scientific research institutions or machinery manufacturing plants. ④Experience and lessons learned from the equipment renovation in our factory should be summarized. Based on investigations and research, and through technical and economic analysis of multiple options, we can make relatively accurate decisions. IV. Enterprises should be proactive and arrange projects reasonably; the low rate of equipment depreciation needs to be addressed **gradually. In the near term, it is also impossible to **allocate a large amount of funds for enterprises to carry out technological upgrades. However, with the expansion of corporate autonomy and the implementation of economic responsibility systems, corporate own funds, including depreciation funds and funds for production development from retained profits, will gradually increase. At this time, as long as enterprises make overall arrangements and use resources reasonably, it is possible to address some urgently needed projects. Furthermore, specialized equipment accounts for a large proportion in enterprises; it is relatively easy to carry out technical upgrades on such equipment through major repairs. The amount exceeding the original value of the equipment is covered by funds allocated for technical upgrades, thereby addressing the issue of the equipment’s \"value increase\". In short, enterprises should have a plan for technological upgrading that aims to improve their technology and transform their appearance, and they should make active efforts to make rational use of all types of funds at their disposal. After some time of effort, the technical equipment of large and medium-sized enterprises will see significant improvements.