[Haichuan Project Updates] Sinopec and China Wanda collaborate to launch a 260,000-ton/year acrylonitrile production facility

The total investment for the second-phase expansion project of Shandong Korul Chemical Co., Ltd. is 1.252 billion yuan, of which 1.09 billion yuan is allocated to construction costs. Once completed, the project is expected to generate sales revenue of 1.9 billion yuan and profits and taxes of 240 million yuan. While bringing economic benefits to the company, it will also play a significant role in promoting the development of industries upstream and downstream in Dongying Port. The project utilizes the propylene ammoxidation process technology developed by Sinopec, along with the state-of-the-art SANC-15 catalyst. Its production capacity is 130,000 tons of acrylonitrile per year, with by-products including 13,200 tons of hydrocyanic acid, 4,200 tons of acetonitrile, and 20,300 tons of sulfuric acid. The construction scope mainly includes production facilities for acrylonitrile, acetonitrile, and ammonium sulfide, as well as utility systems such as tank farms, circulating water systems, and air separation units, as well as waste treatment facilities. At present, all the preparatory work ahead of the commencement of Phase 2 is being carried out in an orderly manner. Pile foundation construction has been fully underway. The key equipment required for the project, namely air compressors and refrigerators, have been ordered, and detailed design work has commenced. To date, approximately 20,000 cubic meters of civil engineering work has been completed, along with 2,059 pipe piles.

In line with Wanda Group’s industrial strategic plan and the goal of establishing a billion-yuan industrial park by the port, the company has invested over 10 billion yuan in recent years to develop key projects such as Tianhong Chemical, Hongxu Chemical, Baogang International, Undersea Cable, Tengyu Petrochemical, and Wanda Seaport City, thereby enhancing its leading role in the industry. Wanda Petrochemical’s comprehensive processing capacity exceeds 20 million tons per year, with an oil import quota of 4.4 million tons – the highest in Dongying. Leveraging the significant advantages of having designated production targets, ports, pipeline transportation systems, and bonded storage areas, it has developed a distinctive industrial chain at Wanda that integrates activities ranging from oil refining and chemical processing to rubber tire production, featuring close integration and a scientific structure. It is one of the private refineries in China with the most complete industrial chain ； Among them, Tianhong Company was identified by the provincial party committee and government as one of the 5 petrochemical enterprises to be given priority support across the province, and it will not participate in the integration of local refineries ； Hongxu holds a leading position in the chemical industry, with a dominant market share in its MMA products.

Shandong Korul Chemical Co., Ltd. is a joint venture established by Sinopec Qilu Branch and China Wanda Group. It is also Sinopec’s first mixed-ownership company formed in collaboration with a private enterprise. This partnership allows Sinopec to leverage its advantages in technology, management, and talent, while simultaneously taking advantage of the flexibility that private enterprises bring in terms of resource allocation and operational mechanisms. As a result, complementary strengths are combined to create a successful model for cooperation between private enterprises and state-owned enterprises. The company’s registered capital is 500 million yuan, with Sinopec Qilu Branch holding 55% of the shares and Wanda Holdings Group holding 45%. The 260,000 tons per year acrylonitrile project, with the first phase of 130,000 tons per year capacity, came online in December 2014 ； The second phase of the project involves the construction of an acrylonitrile plant with an annual production capacity of 130,000 tons, along with related supporting facilities; operation is scheduled to begin in October 2021.

This Chinese Wanda is not Wanda Plaza

It is a privatized enterprise in Shandong.

It should be a copy of the Anqing acrylonitrile project. Is it the Ningbo Engineering Company that is carrying out the general contracting?

I haven’t noticed any news in this regard yet

ABS/SAN and acrylamide are the main sectors driving growth in acrylonitrile consumption. The main downstream applications of acrylonitrile include ABS, acrylic fiber, acrylamide/polyacrylamide, nitrile rubber, and hexanitrocinane, among others. Asia is the largest region in the world for acrylic acid consumption. Before 2012, acrylic fiber was the biggest user of acrylic acid; however, as the structure of global acrylic acid consumption has changed in recent years, the share of acrylic fiber has declined. ABS/SAN is gradually becoming the largest consumer of acrylonitrile, while downstream products such as acrylamide, adiponitrile, and nitrile rubber are also seeing steady growth. Developing low-pollution or pollution-free production processes for acrylonitrile has become an inevitable trend. The main industrial methods for producing acrylonitrile are the propylene ammoxidation method and the propane ammoxidation method. Currently, all acrylonitrile in China is produced via the propylene ammoxidation process. China has made significant progress in the research of acrylonitrile production technology. Catalysts are crucial for the production of acrylonitrile, and many companies are focusing on the development of high-performance catalysts, including the Jilin Design Institute of CNPC Northeast Refining & Chemical Engineering Co., Ltd. and the Sinopec Shanghai Research Institute of Petrochemical Technology. The focus of the research is on the development of catalysts for low-temperature, high-pressure, and high-propylene-load conditions. With the growing awareness of environmental protection, the environmental pollution caused by acrylonitrile production is receiving increasing attention. This has had an adverse effect on some acrylonitrile plants built in earlier years; these plants need to invest funds in partially upgrading their facilities and constructing new waste gas and wastewater treatment systems in order to meet **environmental regulations. In the coming years, propylene ammoxidation will remain the primary process for producing acrylonitrile, and the research and development of catalysts will continue to be at the core of this technological process ； Acrylonitrile technology developers all focus on their own catalyst technologies to develop complete acrylonitrile production processes ； As environmental awareness grows in various countries, the environmental pollution caused by acrylonitrile production is receiving increasing attention, making it inevitable to develop production processes for acrylonitrile that result in low or no pollution.

China’s acrylonitrile market is moving toward a balance where supply and demand are relatively weak. By the end of 2017, China’s effective acrylonitrile production capacity was around 1.95 million tons, with an average annual growth rate of 8.86% over the past 5 years; the production facilities are mainly located in companies owned by Sinopec and CNPC. The production capacity of acrylonitrile at the private enterprise Jiangsu Sierbang Petrochemicals is 260,000 tons per year, accounting for approximately 13% of the total production capacity. Saicere’s total acrylonitrile production capacity is 520,000 tons per year, ranking first in China with a share of 24% ； Sinopec Jilin Petrochemical Company has an acrylonitrile production capacity of 420,000 tons per year, ranking second with a share of 19%. As production capacity expands gradually, China’s acrylonitrile market is moving toward a balance where supply and demand are relatively weak; imported products are losing market share to domestic ones, leading to increasingly fierce competition in this industry. In 2017, China’s total acrylonitrile production was 1.74 million tons, with an operating rate of 89% ； Imports of acrylonitrile amounted to 271,000 tons, a decrease of 11.4% compared to the previous year ； The apparent consumption of acrylonitrile was 2.007 million tons, with an average annual compound growth rate of 8.86% over the past 5 years.