[Haichuan Chemical: Stepping into a New Era] Fushun Petrochemical Becomes a World-Class Paraffin Base
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Fushun Petrochemical’s world-class paraffin production base adds luster to the Belt and Road Initiative. ****Following the launch of the significant initiative to build the \"Belt and Road,\" the company seized the opportunities presented by this initiative to expand its operations overseas, making continuous efforts in foreign markets. The company’s paraffin products have reached 19 countries and regions along the \"Belt and Road,\" demonstrating the competitiveness and influence of Chinese petroleum products in international markets. Since 2017, in line with the key development objectives outlined in the 13th Five-Year Plan, the company has made every effort to advance its plan for co-production of oil and wax. First, the 300,000 tons per year dewaxing and degreasing unit that had been idle for 10 years was upgraded to a 600,000 tons per year diphenyl degreasing unit, resulting in an annual increase in paraffin production of 210,000 tons. At the same time, the microcrystalline wax and polishing oil projects were advanced, which not only increased paraffin production but also filled the gap in high-melting-point microcrystalline waxes. At present, all projects have fully entered the substantive implementation phase, while the microcrystalline wax and polishing oil projects are in the preliminary stage. One in every 7 candles in the world is made from materials produced by Fushun Petrochemical. The company’s paraffin production accounts for one-third of the total in China and one-seventh of the global total, earning it the title of \"Paraffin King\". Last year, the total volume of paraffin products exported reached 200,000 tons (including both direct and indirect exports), accounting for 40% of the U.S. market share; this year, nearly 400,000 tons of paraffin were sold throughout the year.
Paraffin is a type of mineral wax, and it is also a type of petroleum wax； It is obtained by processing the lubricating oil fractions derived from crude oil distillation through solvent refining, solvent dewaxing, or wax crystallization via freezing and extrusion dewaxing; subsequent solvent deoiling and refining yield flaky or needle-like crystals. Microcrystalline wax is a refined synthetic wax with properties similar to those of microcrystals, featuring good luster, a high melting point, and a light color. It has a compact structure that is firm yet smooth, and it can blend with various natural waxes while raising the melting point of lower-grade waxes and improving the performance of coarse waxes. Microcrystalline wax is itself as white as jade and develops a shiny surface when rubbed, which is highly beneficial for producing light-colored products. It possesses excellent oil-absorbing capabilities, allowing it to form stable, uniform pastes with various solvents and waxes; it also has emulsifying properties and can be used as an additive in shoe polish, car wax, polishing waxes, floor waxes, finishing waxes, traditional Chinese medicine pills, protective agents, candles, wax toys, dental materials, and cosmetics. Additionally, using this material in wax paper formulations results in clearer writing and a significantly improved resistance to abrasion. Microcrystalline wax has a wide range of applications and represents the latest advancement in synthetic waxes from the 1990s; it can replace imported similar waxes, reducing costs by approximately 50%.
There’s also the subsequent process of wax oil hydrogenation.
It is hoped that more high-end products can be developed, such as temperature-sensitive wax/phase-change wax, which would bring a higher added value.
Is it more profitable to hydrogenate paraffin oil, or to produce microcrystalline wax? However, with microcrystalline wax being used for candle production, the market for it has grown significantly. It seems that most of the wax oil is still processed through hydrogenation to be used as raw material. On August 4th, the Liaoyang Petrochemical plant’s project to upgrade its wax oil hydrocracking capacity to 1.1 million tons per year, which was undertaken under the EPC contract by Huayu Company’s East China Design Institute, was successfully completed. It is understood that, in accordance with the overall processing flow plan for the optimization and efficiency improvement project of Liaoyang Petrochemical’s Russian crude oil processing, the project involves upgrading the existing wax oil hydrocracking unit with an annual production capacity of 1 million tons; after the upgrade, its capacity will be increased to 1.1 million tons per year. The unit will operate under a scheme aimed at producing more naphtha, in order to boost the plant’s overall aromatic compound production capacity. The hydrogen cracking reforming unit with an annual production capacity of 1.1 million tons of wax oil will significantly enhance Liaoyang Petrochemical’s capabilities in diversified oil refining as well as its ability to process complex oil products. It is a key project for Liaoyang Petrochemical to overcome financial difficulties and achieve economic transformation in the coming period, and it is also the first of the five reform projects to be completed successfully.
Developing unique features is a good strategy for a company’s survival
The products obtained from the hydrogenation of paraffin oil are ordinary commodities that can be sold easily through existing sales networks. If it is converted into macrocrystalline wax, although the gross profit is higher, it belongs to the category of specialty chemicals, and the sales networks in the petrochemical industry certainly cannot sell such products, or only low-margin basic products can be sold.
The products obtained from the hydrogenation of paraffin oil are ordinary commodities that can be sold easily through existing sales networks. If it is converted into macrocrystalline wax, although the gross profit is higher, it belongs to the category of specialty chemicals, and the sales networks in the petrochemical industry certainly cannot sell such products, or only low-margin basic products can be sold.
Does goose fat contain a high amount of paraffin? Happy New Year