[Haichuan Chemical Salary News] Balin Petrochemical’s caprolactam production chain will be relocated to support the development of Dongfeng Lake New Area in Yueyang City
Thread Content
Hunan Province and Sinopec signed a framework agreement on cooperation for the relocation and development of the caprolactam production chain at Balin Petrochemical. The caprolactam production chain at Balin Petrochemical will be relocated to support the development of the Dongfeng Lake New Area in Yueyang City. According to a report by Huasheng Online on November 8 (reporter: Peng Zhan), at 7 p.m. on November 7, the People’s Government of Hunan Province and Sinopec Group signed the “Framework Agreement on Cooperation for the Relocation, Upgrading, and Transformation of the Caprolactam Production Chain at Sinopec Balin Petrochemical” at Sinopec’s headquarters in Beijing. Chen Fei, Vice Governor of Hunan Province, and Ling Yiqun, Deputy General Manager of Sinopec, signed on behalf of their respective sides and held talks. This is a significant measure taken by both the enterprise and the local authorities to implement environmental protection policies aimed at safeguarding the Yangtze River, as well as the guidelines set out in documents such as those issued by the General Office of the State Council on promoting the relocation and transformation of hazardous chemical manufacturing enterprises in areas with high urban population densities. It serves to deepen strategic cooperation, support the development of the Dongfeng Lake New Area in Yueyang City, enhance the city’s development standards and competitiveness. Additionally, it aims to facilitate the structural transformation and upgrading of Yueyang’s petrochemical industry, improve the competitiveness of its enterprises, and promote integrated development between enterprises and the city. The People’s Government of Hunan Province and Sinopec conducted friendly consultations based on the principles of mutual benefit and common development, and worked together to promote institutional and mechanism innovation. As a result, a cooperation agreement was reached for the upgrading and transformation of the caprolactam industry chain at Baling Petrochemical, covering aspects such as general principles, implementation plans, policy measures, and promotion mechanisms. The four overall principles are: build first and then demolish to maintain stability; pursue transformation and upgrading with monetary compensation; innovate the system and expand the industry; and develop a comprehensive plan for phased implementation. The two parties agreed that the plan for the relocation, upgrading, and transformation of Balin Petrochemical’s caprolactam production chain would be carried out in two phases: the construction of a new facility and the shutdown and demolition of the existing plants. Regarding the relocation, upgrading, and transformation of the caprolactam industry chain at Baling Petrochemical, the People’s Government of Hunan Province and Sinopec have each identified 6 policy measures. The two sides also agreed to establish a task force composed of leaders from Hunan Province, Yueyang City, Sinopec’s headquarters, and Baling Petrochemical, as well as to set up a joint meeting system. Both parties agree to work together to promote institutional innovation. In accordance with the principle of local management, Sinopec will actively cooperate with Hunan Province in fulfilling its responsibility for maintaining stability during the process of relocation, upgrading, and transformation, so as to carry out relevant tasks jointly and ensure stability for both the enterprise and society. On the same day, the People’s ** of Yueyang City and Baling Petrochemical Company also signed a \"Framework Agreement on Cooperation for the Relocation, Upgrading, and Transformation of the Caprolactam Industry Chain at Sinopec Baling Petrochemical Company.\" Yang Kun, Vice Mayor of Yueyang City, and Wu Zhiyong, representative of Baling Petrochemical Company and Party Secretary, signed on behalf of their respective sides. Yi Jialiang, Deputy Secretary-General of Hunan Province; Tong Xudong, Secretary of the Party Leadership Group of the Hunan Provincial Department of Science and Technology; Liu Hesheng, Secretary of the Yueyang Municipal Party Committee and Chairman of the Municipal People’s Congress; Tan Zhenghong, Member of the Municipal Party Committee and Secretary-General; Qiu Hong, Vice Mayor; You Houping, Deputy Director of the Development Planning Department of Sinopec; Jiang Yongfu, Deputy Director of Sinopec’s Finance Department; Xu Yuehua, Deputy Director of the Chemicals Business Unit; Li Degang, General Manager of Baling Petrochemical Company; Peng Gewei, Deputy General Manager; and Zhang Zhongyu, Secretary of the Yunxi District Party Committee in Yueyang City, attended the signing ceremony. For a long time, the people of Hunan Province have maintained a good cooperative relationship with Sinopec. In September 2011, the People’s Government of Hunan Province and Sinopec signed a strategic cooperation framework agreement. The People’s Government of Hunan Province provided full support for the reform and development of Sinopec’s enterprises in the province, while those enterprises also made positive contributions to Hunan’s economic and social development as well as to energy security.
As one of the largest caprolactam producers in China, Baling Petrochemical has developed a complete set of caprolactam production technologies centered on ammonia oximation, and successfully brought these technologies into industrial use. Subsequently, it has also developed new caprolactam production methods such as the **oxime gas-phase Beckmann rearrangement technique and cyclohexene esterification hydrogenation technique**, all of which are ready for industrial implementation. In terms of polyamides, research and development have been completed on ultra-high viscosity pellets with a relative viscosity of around 4.0, highly fluid nylon, and PA6/66 copolymerized nylon; meanwhile, research is underway on flame-retardant nylons, polyamide elastomers, and special polyamide materials for use in vehicle lightweighting, thereby laying a technical foundation for the diversification and differentiation of polyamide products. However, at present, the caprolactam industry chain layout of Baling Petrochemical suffers from shortcomings such as a relatively scattered structure, unreasonable integration of the various stages in the industry chain, outdated process routes for some production units, and insufficient matching between the capabilities of the upstream and downstream facilities. Peng Gewei, deputy general manager of Baling Petrochemical, said that in order to achieve further development, the company will extend the caprolactam industry chain. It plans to carry out industrial cooperation with well-known downstream enterprises in China’s new materials sector in areas such as BOPA films, high-end polyamide products, and polyamide materials for automotive lightweighting. The goal is to attract these downstream enterprises to invest in setting up factories near Baling Petrochemical, thereby strengthening the caprolactam-polyamide-spinning (engineering plastics) industry chain. By around 2025, an industrial scale of 600,000 tons per year for caprolactam, 400,000 tons per year for polyamide, 300,000 tons per year for spinning, and 100,000 tons per year for engineering plastics will be established in the Yueyang area.
Caprolactam is short for ε-caprolactam; its molecular formula is C6H11NO. It appears as a white powder or crystals, with an oily texture to the touch. Caprolactam is one of the important raw materials in the organic chemical industry. Its main use is to be polymerized to produce polyamide chips (commonly known as nylon-6 chips or polyamide-6 chips), which can then be further processed into nylon fibers, engineering plastics, and plastic films. Nylon-6 chips have different primary application areas depending on their quality and specifications. On October 27, 2017, the International Agency for Research on Cancer under the World Health Organization published a preliminary list of carcinogens; caprolactam was included in Group 4 of carcinogens (according to data updated by the International Agency for Research on Cancer on January 26, 2018, Group 4 carcinogens are those that may not pose a carcinogenic risk to humans).
On the morning of October 30th, Dutch time, the share transfer ceremony between Hengshen Holding Group (hereinafter referred to as “Hengshen”) and Fubangte Holding Company (hereinafter referred to as “Fubangte”) was successfully held in Maastricht, the Netherlands. Following this transaction, Hengshen acquired 100% of the shares in Fabont’s caprolactam factory in the Netherlands (Fabont Ltd.) as well as 60% of the shares in Fabont’s caprolactam factory in Nanjing, China (Nanjing Fabont Oriental Chemical Co., Ltd.). This move enabled Hengshen to become the world’s largest caprolactam production group, and it was the first company to establish a complete industrial chain that covers 8 different stages in the production process. It is understood that caprolactam, abbreviated as CPL, is primarily used through polymerization to produce polyamide 6 chips, which can then be further processed into nylon fibers, engineering plastics, and plastic films. It is widely utilized in industries such as machinery, automotive manufacturing, chemical equipment, aviation, and metallurgy, and is one of the important organic chemical raw materials. Hengshen Holding Group is a modern enterprise group composed of various subsidiaries such as Shenyuan New Materials, Hengshen Synthetic Fibers, Liheng Nylon, and Liyuan Nylon. It was the first in the world to establish a complete industrial chain that spans from caprolactam to dyeing and finishing processes. In July 2017, Shenyuan New Materials Co., Ltd.’s integrated plant with an annual production capacity of 400,000 tons of caprolactam and polyamides was successfully commissioned and put into operation, ranking fourth in the world in terms of caprolactam production capacity.
Fubont has been dedicated to the production of high-quality caprolactam and sulfuric acid an for 66 years; it is the world’s largest caprolactam producer and was formerly part of the globally renowned Dutch company Royal DSM. Fubont boasts globally renowned product quality, after-sales service, and sustainable patents. It is a key supplier to well-known engineering plastic manufacturers such as BASF, DSM, Lanxess, and Dow, whose engineered plastics are widely used in the production of vehicles by brands like Mercedes-Benz, BMW, and Audi. As part of this deal, Hengshen acquired Diessmann Europe’s 280,000-ton caprolactam production facility in Europe, as well as its 320,000-ton phenol production facility; it also got the 400,000-ton caprolactam production facility at Fubangte’s factory in Nanjing. In addition, Hengshen obtained key technologies and intellectual property rights, including caprolactam production technology, the phenol-based production process, and technology for producing large-grain sulfuric acid.
On the morning of July 28, the signing ceremony for the investment contract for the 600,000-ton-per-year integrated project for caprolactam production, polymerization, and spinning in Pingdingshan was held in Zhengzhou. The parties involved were the People’s Government of Pingdingshan City, China Pingmei Shennma Group, Sanding Holding Group, and Pingdingshan Development Investment Company. It is reported that the integrated project for the annual production of 600,000 tons of caprolactam—polymerization—spinning will be jointly funded by China Pingmei Shenma Group, Sanding Holding Group, and Pingdingshan City Development Investment Company. The total investment is expected to be 20 billion yuan, with the project located in the Pingdingshan Nylon New Materials Industry Cluster. Vice Governor Liu Wei and relevant responsible officials from provincial departments directly under the government ； Zhou Bin, Secretary of the Municipal Party Committee; Zhang Leiming, Mayor; Li Mao, Deputy Mayor ； Yang Jianguo, Executive Deputy General Manager Ma Yuan, Deputy General Manager Wan Shanfu, Director Zhang Dianzi ； Ding Ermin ； Liu Di, chairman of Beijing Sanlian Hongpu Company, Li De, deputy general manager, and others attended the signing ceremony. The ceremony was presided over by Zhang Leiming.
Liang Tieshan said that in recent years, China Pingmei Shenma Group has focused on leveraging coal resources, expanding its uses beyond coal, and moving beyond coal-based industries. It has pursued a strategic transformation with determination, working to establish a modern industrial system characterized by diversified support and coordinated development. In particular, the group has made it its main goal to strengthen and expand the nylon industry; building on its leading global position in nylon 66 products, it has implemented a number of major structural adjustment projects despite challenging conditions, thereby providing strong support for the company’s strategic transformation. Zhou Bin said that the construction of an integrated project for the production of 600,000 tons per year of caprolactam, polymerization, and spinning is a significant milestone for Pingdingshan City in accelerating its transformation and development, as it moves forward toward achieving the goal of becoming a \"Nylon City of China\". Once completed, the project will further promote the clustered development of industries using new nylon materials, laying a solid foundation for the establishment of a billion-yuan-scale industry base for such materials, and accelerating Pingdingshan’s transformation from a \"coal hub in Central China\" to a \"Nylon City of China\".
The Tengger High-Tech Materials Industrial Park of Inner Mongolia Qinghua Group is accelerating the construction of the caprolactam project, turning this key project into a powerful tool for promoting high-quality economic development. At the construction site of the caprolactam project in the Tengger High-Tech Materials Industrial Park of Inner Mongolia Qinghua Group, workers are welding and installing production equipment. Starting in July, Qinghua Group’s Tengger High-Tech Materials Industrial Park launched a \"100-Day Campaign\" with the goal of completing the construction of the caprolactam production facility by the end of October and moving on to the testing phase.
Luxi Chemical released its performance forecast on Wednesday (October 10, 2018) evening. With the gradual commissioning of projects such as the second phase of caprolactam production and hydrogen peroxide production, the output and sales volume of its products increased on a year-on-year basis. It is expected that the company will achieve a net profit of 2.3 billion to 2.4 billion yuan in the first three quarters of 2018, representing a year-on-year increase of 114.59% to 123.92%. The 100,000-tonne per year phase II project of the 200,000-tonne per year caprolactam production facility, which was built by Liaocheng Meisi New Materials Technology Co., Ltd., a wholly-owned subsidiary of Luxi Chemical, came online in February 2018; the hydrogen peroxide production unit constructed as part of this facility began operating prior to the start of phase II of the caprolactam production project.
Recently, construction on the Yongrong caprolactam (CPL) project is in full swing at the Lingang Industrial Park in Xiuyu District, Putian. Among them, the civil works for the refining unit have been completed, and 157 pieces of equipment have been installed ； The amoximation plant has also completed its civil works, with 160 pieces of equipment installed ； **The device has completed the installation of 60 units. Additionally, the supporting production facilities and public works are also nearing completion. The CPL project is invested and constructed by Fujian Yongrong Technology Co., Ltd., with a total investment of 14.88 billion yuan. The project’s production capacity is 600,000 tons per year, and once operational, it is expected to generate an annual output value of 15 billion yuan; trial production is scheduled to begin in June this year.
On April 20, Zhang Xinming, deputy director of the Development Planning Department of Sinopec Group, and his team visited Yue to discuss the comprehensive relocation and construction of the caprolactam facility in the urban area. Vice Mayor Yang Kun and Vice Chairman of the Municipal Political Consultative Conference Kong Fujian attended, along with the heads of Baling Petrochemical, Yunxi District, and other relevant municipal departments. With the rapid development of the central urban area in Yueyang, the caprolactam industry chain in the Baling Petrochemical area has become integrated with the urban area. Moreover, the production facilities store large quantities of flammable, explosive, toxic, and harmful materials, posing significant safety and environmental hazards. In accordance with the relevant regulations and policy requirements, and in order to meet the development needs of Yueyang city, as well as to facilitate the technological upgrading of the caprolactam industry chain and help Baling Petrochemical get out of financial difficulties, our city has decided to relocate all caprolactam production facilities in the urban area to the Yueyang Green Chemical Industry Park.