【Business Management Case】An Insight into Yunnan Petrochemical’s Growth Model

Thread Content

40 kilometers west of Kunming, the \"Spring City,\" lies Caopu Town in Anning City. In August 2017, Yunnan Petrochemical of Sinopec was built and put into operation here, with a refining capacity of tens of millions of tons. This change transformed Yunnan’s historical status as a \"terminal province for energy\" into that of a province that exports oil products. The refined oil produced not only meets the oil supply needs of Yunnan province itself but is also exported to the southwestern region, thereby optimizing China’s refined oil distribution network and making it a rising star in the refining industry. By visiting Yunnan Petrochemical, I gained an in-depth understanding of this newly commissioned refinery and identified three \"young\" characteristics. 　　I. Young corporate employees At the group company’s 2018 petrochemical skills competition, four young people from Yunnan Petrochemicals—Shi Guang, Li Yuan, Xia Jiayun, and Wang Huigang—won bronze medals, while four other young people—Guo Liming, Qi Xin, Zhang Yi, and Li Bing—received bronze awards in the category for emergency response teams working in tank areas. 　　With 8 competitors whose average age is 35, winning 5 medals on their first participation is undoubtedly a good result for Yunnan Petrochemical, which is still in its infancy and lacks experience and expertise. 　　Yunnan Petrochemical has a designed production capacity of 13 million tons, yet it employs only 790 staff members, whose average age is less than 35 years. Among them, over 370 employees are under 30 years old, accounting for 47% of the total workforce. It is the refinery with the smallest workforce among those of similar scale in the refining and petrochemical sector, as well as the company with the highest proportion of young employees. 　　Young people taking on leadership roles has become the norm at Yunnan Petrochemical. Jiang Guoquan, the deputy director of Production Department 3, spoke about the young people in the factory with a pleased smile on his face: “Our department has over 120 members, with an average age of less than 30. These young people are eager to learn and dedicated to improving their skills; each of them is like a vibrant little tiger.” ” 　　Take Time as an example: a graduate student majoring in chemical engineering at China University of Petroleum (Huadong), who is only 29 years old this year, already serves as the deputy team leader of Team 1 at the 2.4 million-ton continuous reforming unit in Production Department 3. He is responsible for the daily management of the team as well as coordinating various operational tasks, showing calmness and attention to detail, while also possessing a spirit of innovation. 　　Just like time, Li Yuan, who was born in the 1990s, has now become the deputy shift leader of Team 2 responsible for operating the three continuous reforming units. When it comes to this young man, the experienced workers in the factory have only good things to say about him: “He’s diligent and hardworking; he’s really a great kid!” ”In one year, he went through a transformation, evolving from an ordinary worker to an operator and then to an assistant shift leader. 　　Since its commissioning, Yunnan Petrochemical has seen its plants operate safely and steadily; the yield of its products has increased steadily, while energy consumption has decreased. All performance indicators are better than those specified in the design plans. Behind these achievements are the efforts of many individuals such as Shigao and Li Yuan. 　　Speaking about her own growth, Shigeho said, “We were fortunate to encounter the great opportunity for the development of Yunnan Petrochemical. This newly built refinery brought together a large number of young people with high educational qualifications, expertise in their fields, and ambition. What’s more, the company was willing to give these young people responsibilities and create opportunities for them, thus providing a platform for our growth.” ” 　　II. Modern Equipment and Facilities Entering Yunnan Petrochemical, one finds a clean campus shaded by trees; ducks and swans play in the ponds, while the new refining equipment shines brightly against the backdrop of blue skies and white clouds. 　　Walking around the entire refinery, there are very few people on the roads outside the production facilities. This newly commissioned refinery is equipped with top-tier production and processing equipment available in China, as well as advanced production processes. The new equipment and high level of informatization are major features of the refinery. 　　We learned from Yunnan Petrochemical that all the production and processing equipment in the refinery is of first-class quality in China. Seventeen new units will be built, including ones with a capacity of 13 million tons for atmospheric and vacuum distillation, 3.3 million tons for heavy oil catalytic cracking, and 2.4 million tons per year for continuous reforming. The refining projects employ a fully hydrogenation-based process flow; the main units utilize internationally advanced technologies, offering advantages such as high safety and environmental standards, strong adaptability to crude oil processing, advanced process technologies, complete set of supporting facilities, and high-quality, clean products. 　　New equipment has also opened up new possibilities. Last November, the gasoline produced by Yunnan Petrochemical met the National VI (B) standard, leading the country by at least 4 years ； At the beginning of November last year, Yunnan Petrochemical began producing military Jet A-3 fuel in bulk using a 1.4 million tons per year jet fuel hydrogenation unit and a 2.1 million tons per year hydrocracking unit, marking the successful completion of the qualification certification for this military aviation fuel and granting it access to the market ； On November 29 of last year, the Yunnan Petrochemical refining project, which had been in operation for just 15 months, successfully passed its completion inspection, setting a record as the project in this industry to achieve completion inspection in the shortest time. 　　Song Guanwu, the company’s deputy general manager, believes: “To do a job well, one must first have the right tools.” As a newly commissioned refinery, Yunnan Petrochemical boasts the ‘youngest’ equipment and products, which inherently ensures the safety, reliability, and stability of its operations, as well as advanced levels in economic and technical indicators such as energy consumption and material usage. This is also one of the key reasons why companies are able to achieve leadership in multiple industries. ” 　　III. A youthful approach to development The employees of Yunnan Petrochemical come from 26 enterprises and 45 universities across the country; each employee has their own unique perspective and style. Enterprise managers have been striving to unify thinking, so that employees and the company can be in sync, thereby creating strong cohesion within a shared corporate culture. 　Jin Yanjiang, Party Secretary and General Manager of Yunnan Petrochemical Company, said, “65% of the company’s employees are graduates from after 2012; they possess strong innovation capabilities. It is essential to embrace and retain their innovative ideas, respect their individuality, seek common ground while respecting differences, and create a multicultural environment with unified thinking. This helps to stimulate the enthusiasm of young employees to achieve success, and provides an environment and platform that enables them to stand out. Such an approach is very important for the development of the refinery.” ” 　　Since the beginning of the year, Yunnan Petrochemical has vigorously promoted the initiative of \"extensive training, intensive practice, and thorough assessments.\" It has organized skill competitions and conducted in-depth discussions on job responsibilities, while also pushing forward the implementation of refined management practices. The experience gained from such management approaches is summarized and shared, with the aim of fostering good habits of precise operation and management. The company’s corporate spirit of \"unity and progress, rigor and pragmatism, responsibility and dedication, stability and efficiency\" is used to inspire its employees, helping to build a sense of consensus and providing them with a platform to showcase their talents and make contributions in their roles. 　　The company is vigorously promoting \"flat management\" to shorten the response chain as much as possible and improve work efficiency. At the same time, the requests of front-line employees can also be conveyed to management through the most convenient means. Through entirely new mechanisms and management approaches, it ensures that employees feel a sense of responsibility and rights as owners both at work and in their personal lives. 　　“Our residence is located quite far from the refinery. Some employees have suggested that during commuting hours, it would be helpful if the company could increase the number of stops and the frequency of the shuttle buses. We thought there would be a lengthy application process, but to our surprise, the management listened to these suggestions and immediately assigned the relevant departments to take action. Working here, the most immediate impression is that the managers are approachable, the decision-making process is fast, and employees feel valued. ”When asked about her feelings about working here, employee Zhao Yue gave a thumbs up. 　　This is true domestically as well as internationally. Bao Yongxin, deputy director of the Quality, Safety, and Environmental Protection Department, told us that Yunnan Petrochemical has always adopted an open approach to business operations. From the beginning of its establishment, a \"Green Co-Construction Committee\" was set up, inviting local villagers, company employees, and industry experts to participate. In addition, the main wastewater discharge outlet was located beside the road, allowing environmental and pollution-related data to be made public at any time, so as to listen to public opinions and address concerns. Social media platforms, local residents, and community organizations are invited to visit the company to observe its production processes, thereby establishing channels of communication between society and the refinery. As long as it does not disrupt normal operations, anyone can go to the facility to closely examine the production processes and environmental protection measures in place. 　　Young talent, advanced equipment, and a brand-new business philosophy are the most distinctive features of Yunnan Petrochemical, serving as the driving force behind its innovative development. These elements enable this young refinery to achieve continuous breakthroughs and remarkable results, turning it into a shining gem on the Yunnan-Guizhou Plateau.