【Haichuan Chemical Salary News】A 10-million-ton petrochemical project approved in Dongying, Shandong! Or a new pattern in the petrochemical industry may emerge

People’s Government of Dongying City: Notice on Issuing the 2020 National Economic and Social Development Plan for Dongying City. To the people’s governments of all counties and districts, as well as all departments and units in the city: The 2020 National Economic and Social Development Plan for Dongying City has been reviewed and approved at the fourth session of the eighth People’s Congress of the city. It is now issued to you; please ensure its thorough implementation. People’s Government of Dongying City, February 26, 2020 (this document is made public). The 2020 National Economic and Social Development Plan for Dongying City outlines the key tasks for economic and social development in that year, with an emphasis on accelerating the transition from old to new drivers of growth. First, promote the development of high-end industrial clusters. Centering on the development plan for the “5+2+2” industries and clusters, efforts will be accelerated to extend the industrial chains, optimize the product chains, and enhance the value chains, thereby promoting the overall improvement of existing industries and their advancement toward higher levels. In line with the direction and path of transformation and development, the petrochemical industry supports certain enterprises in participating in the Yantai Yulong Island project; it also helps those enterprises that have been approved by the provincial authorities as not part of the integration process to extend their industrial chains. Additionally, it facilitates central state-owned enterprises in integrating with other companies to develop projects in the fields of chemicals and new materials ； The remaining enterprises rely on PX projects to extend their industrial chains downward, focusing on the development of new chemical materials, and build oil refining facilities with a capacity of 10 million tons; they also plan to construct a second phase of integrated petrochemical projects with an equivalent capacity at an appropriate time. Actively promote cooperation projects with Singapore’s Shouhua Group in the field of new materials, Mitsubishi in Japan in engineering plastics, as well as with Chinese companies such as Sinochem and Zhenhua in propane dehydrogenation and propylene oxide production, as well as in new energy materials, in order to accelerate the transformation of the petrochemical industry. In the rubber industry, efforts should be made to accelerate integration, improvement, and brand building. Projects such as the upgrading of manufacturing equipment for high-performance semi-steel radial tires produced by Yongsheng Rubber should be carried out thoroughly. The goal is to develop around 5 companies that can rank among the leaders in the global tire industry, as well as a number of specialized enterprises that produce high-quality rubber materials and components. Breakthroughs should also be achieved in high-end fields such as aviation tires. The petroleum equipment industry adheres to the approach of advancing the enterprise through technology while simultaneously expanding into new markets; it focuses on the development of high-end, intelligent oil and gas energy equipment projects in order to continuously enhance its core competitiveness. In the non-ferrous metals industry, support is provided to leading enterprises to expand their scale, improve quality, and extend their production chains; particular emphasis is placed on advancing projects such as those related to high-precision copper foil production by Hesheng Copper Industry. In the new materials industry, efforts are being accelerated to implement projects such as functional ceramic new materials industrial parks and high-performance thermal insulation materials, in order to drive the two traditional industries of chemicals and non-ferrous metals toward the development of new materials. Meanwhile, the industries related to functional ceramic materials and high-performance fiber materials are being directed toward applications in 5G, electronic devices, and rare earth catalytic materials.

Dongying Port is located at the optimal spot on the over 1,000-kilometer coastline of the Bohai Bay, from Huanghua to Longkou, for building deep-water ports, and has become the largest port in the Bohai Sea region specialized in oil products and liquid chemical goods. With a petroleum refining capacity of 70 million tons, Dongying accounts for one-tenth of the country’s total refining capacity. The petrochemical industry has become a pillar industry in Dongying City, accounting for half of the city’s total industrial output. However, with the rapid development of the petrochemical industry in recent years, especially amid efforts to build a high-end petrochemical hub in northern Shandong, Dongying Port, which serves as a support for the local petrochemical industry, has proven to be insufficiently capable. Its overall scale is relatively small, and issues such as a lack of deep-water berths and low-grade docks are becoming increasingly prominent. In recent years, Dongying City has seized the significant opportunity provided by the provincial party committee and provincial authorities to develop a high-end petrochemical industry base in northern Shandong. It has made vigorous efforts to promote the transformation and upgrading of its petrochemical industry, thereby securing broad prospects for its development; the petrochemical industry has entered a new phase of high-quality growth. According to the Municipal Development and Reform Commission, 12 projects in Dongying have been selected as key provincial projects for 2020, an increase of 9 compared to 2019. The total investment amounts to 252,428 million yuan, covering 8 construction projects and 4 preparation projects; these 12 projects span industries such as new materials, high-end equipment, next-generation information technology, and modern efficient agriculture. There are 7 projects related to the field of new materials. The total investment for Lihua Yili Jinan Refining & Chemical Co., Ltd.’s 400,000 tons per year high-performance ABS resin production project is 617,567 million yuan, with an investment of 150,000 million yuan planned for 2020. The project mainly involves the construction of facilities for producing 400,000 tons per year of ABS resin and 260,000 tons per year of acrylonitrile, along with related supporting systems. The company will take advantage of its own raw material advantages to expand its production capabilities and develop high-performance resins, aiming to become the most comprehensive, advanced, and competitive integrated enterprise in China for the ABS/PC industry chain. The total investment for Dongying Weilian Chemical Co., Ltd.’s project to produce 2.5 million tons per year of purified terephthalic acid and related facilities amounts to 4,604,050,000 yuan. In 2020, an investment of 1,200,000,000 yuan is planned. The project covers an area of 700 mu, and it involves the installation of a new unit for producing purified terephthalic acid, along with associated utility and auxiliary facilities. This project is part of the expansion of our city’s petrochemical industry chain; it fills the gap in PTA products within the province, and the single unit involved is currently the largest of its kind in China. The construction project for Juriu New Materials (Dongying) Co., Ltd. to produce 87,000 tons of photocurable series materials per year requires a total investment of 1,340,710,000 yuan, with an investment of 544,550,000 yuan planned for 2020. The 6 products of this project are supported by 6 invention patents, all of which are independently developed and represent world-leading technology. The total investment for Dongying Junfu Purification Technology Co., Ltd.’s liquid microporous filtration material project is 250 million yuan; in 2020, an investment of 50 million yuan is planned, which will be used primarily for the production of liquid microporous filtration material products. This project utilizes its own patented technology, which helps enhance the international competitiveness of the materials. The total investment for Shandong Sinopec Shenghua Chemical Group Co., Ltd.’s 5,000-ton/year power battery additive production project is 363.62 million yuan, with an investment of 115.28 million yuan planned for 2020. This project utilizes internationally leading technologies such as high-throughput continuous flow reactors, and is in line with the development direction of the \"four new\" industries. Shandong Hengpeng Sanitary Products Co., Ltd.’s project to produce 48,000 tons per year of high-quality, environmentally friendly elastic non-woven fabrics for medical use requires a total investment of 864 million yuan; 410 million yuan is planned to be invested in 2020. The product is China’s first green, environmentally friendly high-end elastic non-woven fabric for medical use; it eliminates the generation of waste and fills a gap in **this technical field. The Zhongfang Special Fiber Co., Ltd. project for producing 10,000 tons of para-aramid fibers per year requires a total investment of 1 billion yuan, with an investment of 100 million yuan planned for 2020. The technology of this project reaches international advanced levels; it represents the first time in China that a fully continuous production process has been implemented, breaking the foreign technological monopoly.

People’s Government of Dongying City: Notice on Issuing the 2020 National Economic and Social Development Plan for Dongying City. People’s governments of all counties and districts, as well as various departments and units in the city: The “2020 National Economic and Social Development Plan for Dongying City” has been approved at the fourth session of the eighth People’s Congress of the city. It is now issued to you; please ensure its thorough implementation. People’s Government of Dongying City, February 26, 2020 (This document is made public.) Dongying City’s 2020 plan for national economic and social development outlines the key tasks for economic and social development in that year, with an emphasis on accelerating the transition from old to new drivers of growth. First, promote the development of high-end industrial clusters. Centering on the development plan for the “5+2+2” industries and clusters, efforts will be accelerated to extend the industrial chains, optimize the product chains, and enhance the value chains, thereby promoting the overall improvement of existing industries and their advancement toward higher levels. In line with the direction and path of transformation and development, the petrochemical industry supports certain enterprises in participating in the Yantai Yulong Island project; it also helps those enterprises that have been approved by the provincial authorities as not part of the integration process to extend their industrial chains. Additionally, it facilitates central state-owned enterprises in integrating with other companies to develop projects in the fields of chemicals and new materials ； The remaining enterprises rely on PX projects to extend their industrial chains downward, focusing on the development of new chemical materials, and build oil refining facilities with a capacity of 10 million tons; they also plan to construct a second phase of integrated petrochemical projects with an equivalent capacity at an appropriate time. Actively promote cooperation projects with Singapore’s Shouhua Group in the field of new materials, Mitsubishi in Japan in engineering plastics, as well as with Chinese companies such as Sinochem and Zhenhua in propane dehydrogenation and propylene oxide production, as well as in new energy materials, in order to accelerate the transformation of the petrochemical industry. In the rubber industry, efforts should be made to accelerate integration, improvement, and brand building. Projects such as the upgrading of manufacturing equipment for high-performance semi-steel radial tires produced by Yongsheng Rubber should be carried out thoroughly. The goal is to develop around 5 companies that can rank among the leaders in the global tire industry, as well as a number of specialized enterprises that produce high-quality rubber materials and components. Breakthroughs should also be achieved in high-end fields such as aviation tires. The petroleum equipment industry adheres to the approach of advancing the enterprise through technology while simultaneously expanding into new markets; it focuses on the development of high-end, intelligent oil and gas energy equipment projects in order to continuously enhance its core competitiveness. In the non-ferrous metals industry, support is provided to leading enterprises to expand their scale, improve quality, and extend their production chains; particular emphasis is placed on advancing projects such as those related to high-precision copper foil production by Hesheng Copper Industry. In the new materials industry, efforts are being accelerated to implement projects such as functional ceramic new materials industrial parks and high-performance thermal insulation materials, in order to drive the two traditional industries of chemicals and non-ferrous metals toward the development of new materials. Meanwhile, the industries related to functional ceramic materials and high-performance fiber materials are being directed toward applications in 5G, electronic devices, and rare earth catalytic materials.

People’s Government of Dongying City: Notice on Issuing the 2020 National Economic and Social Development Plan for Dongying City. To the people’s governments of all counties and districts, as well as all departments and units in the city: The 2020 National Economic and Social Development Plan for Dongying City has been reviewed and approved at the fourth session of the eighth People’s Congress of the city. It is now issued to you; please ensure its thorough implementation. People’s Government of Dongying City, February 26, 2020 (this document is made public). The 2020 National Economic and Social Development Plan for Dongying City outlines the key tasks for economic and social development in that year, with an emphasis on accelerating the transition from old to new drivers of growth. First, promote the development of high-end industrial clusters. Centering on the development plan for the “5+2+2” industries and clusters, efforts will be accelerated to extend the industrial chains, optimize the product chains, and enhance the value chains, thereby promoting the overall improvement of existing industries and their advancement toward higher levels. In line with the direction and path of transformation and development, the petrochemical industry supports certain enterprises in participating in the Yantai Yulong Island project; it also helps those enterprises that have been approved by the provincial authorities as not part of the integration process to extend their industrial chains. Additionally, it facilitates central state-owned enterprises in integrating with other companies to develop projects in the fields of chemicals and new materials ； The remaining enterprises rely on PX projects to extend their industrial chains downward, focusing on the development of new chemical materials, and build oil refining facilities with a capacity of 10 million tons; they also plan to construct a second phase of integrated petrochemical projects with an equivalent capacity at an appropriate time. Actively promote cooperation projects with Singapore’s Shouhua Group in the field of new materials, Mitsubishi in Japan in engineering plastics, as well as with Chinese companies such as Sinochem and Zhenhua in propane dehydrogenation and propylene oxide production, as well as in new energy materials, in order to accelerate the transformation of the petrochemical industry. In the rubber industry, efforts should be made to accelerate integration, improvement, and brand building. Projects such as the upgrading of manufacturing equipment for high-performance semi-steel radial tires produced by Yongsheng Rubber should be carried out thoroughly. The goal is to develop around 5 companies that can rank among the leaders in the global tire industry, as well as a number of specialized enterprises that produce high-quality rubber materials and components. Breakthroughs should also be achieved in high-end fields such as aviation tires. The petroleum equipment industry adheres to the approach of advancing the enterprise through technology while simultaneously expanding into new markets; it focuses on the development of high-end, intelligent oil and gas energy equipment projects in order to continuously enhance its core competitiveness. In the non-ferrous metals industry, support is provided to leading enterprises to expand their scale, improve quality, and extend their production chains; particular emphasis is placed on advancing projects such as those related to high-precision copper foil production by Hesheng Copper Industry. In the new materials industry, efforts are being accelerated to implement projects such as functional ceramic new materials industrial parks and high-performance thermal insulation materials, in order to drive the two traditional industries of chemicals and non-ferrous metals toward the development of new materials. Meanwhile, the industries related to functional ceramic materials and high-performance fiber materials are being directed toward applications in 5G, electronic devices, and rare earth catalytic materials.

The tea pot refineries in Shandong have finally realized that they need to unite to build large-scale oil refineries – thankfully, it’s not too late.

Why are the local refineries in Shandong called teapots? “The term “tea pot” enterprises does not refer solely to the refining companies in Shandong; so-called “tea pot” refineries are small and medium-sized local refineries across the country, with those in Shandong being the most prominent, accounting for 54% of the country’s total refining capacity. Refining companies are referred to as “teapots” because, unlike large buyers who purchase crude oil continuously, they buy it in intermittent amounts, with quantities ranging from hundreds of thousands of tons to millions of tons.

For petaton-scale refining and chemical processing, **will the National Development and Reform Commission give approval?