【Haichuan Chemical Salary News】The feasibility study for the relocation and upgrading project of Baling Petrochemical’s caprolactam facility has been approved!

Baling Petrochemical’s existing caprolactam production facility is located in the city center. Construction began in 1989, and after several expansions and upgrades, the overall capacity of this production chain has reached 300,000 tons per year. With the rapid development of cities, the caprolactam production facilities have gradually been surrounded by urban areas. On November 7, 2018, the People’s Government of Hunan Province, together with Sinopec, and the People’s Government of Yueyang City, together with Baling Petrochemical, signed a provincial and municipal \"Framework Agreement on Cooperation for the Relocation, Upgrading, and Transformation of the Caprolactam Industry Chain of Sinopec Baling Petrochemical Company\", in order to fully advance strategic cooperation in this industry chain. At the beginning of this year, Baling Petrochemical established a leadership group and a project team for the integrated management of the relocation, upgrading, and transformation of the caprolactam industry chain. On February 28, the project’s developer, \"Sinopec Baling Petrochemical Co., Ltd.\", which was established with funding from Sinopec Corporation and Sinopec Group Asset Management Co., Ltd., received its business license.

According to a report from 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 a \"Framework Agreement on Cooperation for the Relocation, Upgrading, and Transformation of the Caprolactam production chain at Sinopec Balin Petrochemical Company\" 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 innovations. 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. Both parties agreed that the plan for the relocation, upgrading, and transformation of the caprolactam production chain at Baling Petrochemical 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 primary responsibility for maintaining stability during the process of relocation, upgrading, and transformation, so as to 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.

According to a report from Hunan Daily·Xin Hunan Client on December 5 (reporter: Xu Yaping; correspondents: Luo Xiaobo, He Wensheng), this morning, the signing ceremony and kickoff event for the project aimed at the relocation, upgrading, and transformation of the caprolactam industry chain were held in Yueyang. Yueyang City ** signed the \"Compensation Framework Agreement for the Relocation, Upgrading, and Transformation Project of the Caprolactam Industry Chain at Sinopec Baling Petrochemical Company\" and the \"Agreement on the Placement of this Project within the Facility of Sinopec Baling Petrochemical Company\" with Baling Petrochemical Company. The project covers an area of 2,650 mu, with a total investment of around 14.3 billion yuan (including the related downstream industries, the total investment reaches 20.8 billion yuan). Once completed, it will generate an annual output value of 18.8 billion yuan and profits and taxes amounting to 1.075 billion yuan, while providing employment for 2,000 people. By developing the downstream textile and engineering plastic industries, it will contribute an additional 100 billion yuan to the local GDP. This move represents a significant breakthrough for Hunan Province in addressing the issue of chemical pollution along its rivers.

The existing caprolactam facility is located in the urban area of Baling Petrochemical Company, which is part of the central urban district of Yueyang. Construction began in 1989 with an initial capacity of 50,000 tons per year; after four rounds of expansion and upgrades, the overall capacity of the caprolactam production chain has now reached 300,000 tons per year. However, with the rapid development of the city, the caprolactam production facilities have gradually been surrounded by urban areas. Shifting from two to three is imperative. The relocation of the project to the Hunan Yueyang Green Chemical Industry Park in Yunxi District will effectively address a range of issues, including environmental and safety hazards in densely populated areas of the urban center, the restoration of the ecological environment in Dongting Lake, the adoption of advanced technologies for upgrading and expanding the new factory facilities, as well as the replacement of commercial land in the city area.