Dual transformation: Guoji Heavy Equipment listed again

In July 2013, SINOMACH Group and CSSC carried out a joint restructuring. Following the joint restructuring, and in line with the central government’s directives on deepening supply-side structural reforms and focusing on the strategies of \"reducing excess capacity, lowering costs, reducing debt, and boosting productivity,\" the State-owned Assets Supervision and Administration Commission of the State Council guided SINOMACH Group and China National Heavy Machinery Corporation in formulating an overall plan for the reform and revitalization of China National Heavy Machinery Corporation. SINOMACH Group established a leadership and working group for the reform and revitalization of China Second Heavy Machinery, mobilizing the entire group’s efforts to ensure the effective implementation of a series of comprehensive reform measures. In May 2015, in order to gain time and space for reform and to maximize the protection of the interests of small and medium-sized investors, ERCC initiated a voluntary delisting process, and in July of the same year it began trading on the National Equities Exchange and Quotations for Small and Medium-sized Enterprises. The voluntary delisting of Erzhong Chongzhuang became the first successful case in the reform of the delisting system in China’s capital market. When voluntarily delisting, the company makes a commitment to strive for a re-listing as soon as possible. Following their voluntary delisting, China National Heavy Machinery Corporation and its subsidiary China National Heavy Machinery Equipment Corporation have, in line with the central government’s plans for supply-side structural reform, pursued debt restructuring to reduce leverage, optimized asset management to cut production capacity, taken measures to reduce inventory levels, strived to improve quality and efficiency while cutting costs, and integrated resources to address weaknesses. As a result, their business structure, asset quality, and operational mechanisms have continued to improve, while their operating costs, debt levels, and workforce sizes have become more reasonable. In 2016, China National Heavy Machinery Corporation achieved a total profit of 530 million yuan, thus meeting its goals for reform and overcoming difficulties. In 2017, China National Heavy Machinery Corporation further consolidated the achievements of its reform efforts to overcome difficulties, achieving a total profit of 570 million yuan.

The Honggang project is an expansion project for Jiangsu Honggang Petrochemical Co., Ltd. to increase its production capacity of purified terephthalic acid (PTA) to 2.4 million tons per year; it is also a project that Zhenjiang Company is committed to completing by April. Due to the special structure of the materials and products used in this project, the joint welds require local heat treatment using a clamp furnace. To ensure product quality and improve production efficiency, after thorough discussion and consultation with departments such as technology and production, the heat treatment team in the auxiliary workshop innovated its working methods. By making use of existing equipment and fixtures, they developed a plan to carry out partial heat treatment on two car-type furnaces simultaneously. Through close coordination with the crew starting work, and by utilizing the partition in the original No. 1 gas furnace, the furnace installation time was reduced by nearly 8 hours compared to conventional methods. This approach solved the problem of difficult sealing between the inclined surface of the end cap and the furnace opening, reduced the consumption of insulation material, and improved work efficiency. The successful completion of the partial final heat treatment for the Honggang project has provided valuable experience for processing similar products in the future.

The Ganges 100,000 tons/year hydrogenated modified resin project is the first set of complete container products operated independently by DONGYUE Zhenjiang Company. From order processing, material procurement, the preparation of drawings and technical documents to actual production, this project was entirely carried out by Zhenjiang Company on its own. There are a total of 2 hydrogenation reactors, which are key equipment for the upgrading of C5 and C9 petroleum resins at Henghe Materials Technology Co., Ltd.; they play a crucial role in maintaining the company’s market share in the petroleum resin sector. During the preliminary preparation phase, the technicians optimized the boss structure of this project based on the product’s structural characteristics, thereby reducing the amount of surfacing and machining required. At the same time, in light of the tight delivery schedule and heavy production workload associated with this project, as well as the high requirements regarding ellipticity and straightness set forth by the customer in the technical agreement, the process engineers provided technical explanations on the manufacturing processes and key control points. Currently, the Technical Department is systematically carrying out tasks such as process evaluation, re-inspection of welding materials, and re-inspection of steel plates for this project. (Tension Chen Kai)

Erduang (Zhenjiang) Heavy Equipment Co., Ltd. was established on September 19, 2008, and serves as a base for the production of heavy equipment under Sinomach Heavy Equipment, which is part of the China National Machinery Industry Corporation. The company is located in Zhenjiang City, Jiangsu Province, within the Yangtze River Delta region, which enjoys rapid economic development. Its manufacturing complex covers an area of about 1,800 mu and consists of a land-based factory and a heavy-lift dock. It possesses the capability to manufacture ultra-large petrochemical pressure vessels, wind power equipment, large-scale complete sets of machinery, equipment for ocean resource exploitation, as well as shipbuilding components. The facility has a transportation capacity of over 1.3 million tons per year, and it has become a major domestic base for the production of oversized and heavy petrochemical equipment, as well as a modern logistics center for the intermodal transport of large-scale goods by river and sea. The nuclear power vessel plant covers an area of approximately 53,000 square meters and is divided into four bays. It is equipped with large welding equipment such as surfacing welding machines, narrow-gap welding machines, and saddle welders, as well as machining equipment like floor-mounted boring machines and CNC lathes. There are also welding auxiliary devices such as large roll formers, heavy-duty roller frames, and positioners. In addition, it is fitted with large cranes, large-scale heat treatment furnaces, radiographic inspection rooms, and sandblasting rooms. The workshop is primarily used for manufacturing large-scale petrochemical containers and equipment. It has supplied over a hundred such ultra-large petrochemical containers and devices to companies such as CNPC, Sinopec, and CNOOC, achieving international advanced standards. The largest of these weigh up to 2400 T, have a diameter of nearly 10 m, and the longest ones exceed 70 m in length. With the continuous advancement of the oil product upgrading industry, the company has been improving its technical and manufacturing capabilities. It now possesses the capability to manufacture pressure vessels with a capacity of 2,500 tons, and its manufacturing standards are among the best in the country. The complete heavy machinery workshop covers an area of approximately 39,000 square meters and is divided into three bays. It is equipped with large-scale processing equipment such as floor-standing boring machines, CNC vertical lathes, horizontal lathes, and CNC double-gate boring and milling machines, as well as a large assembly pit. The workshop can be used for the manufacturing of major complete sets of equipment such as rolling mills, large-scale steel structures, mining machinery, offshore platforms, marine engines, and wind power equipment. The company is equipped with a physical and chemical testing center as well as a welding training and testing center. It has first-class equipment such as tensile universal testing machines, pendulum impact testing machines, and oxygen, nitrogen, and hydrogen chemical analyzers. The welding training center has the capacity to conduct welding training for 18 workers simultaneously, providing strong technical support for product manufacturing. The company’s restructured terminal holds official operating licenses. The work platform is 709 meters long and 25 meters wide, with complete terminal facilities. The heavy-lift berths at the terminal can make use of the 2 x 850-ton bridge cranes available in the container yard to handle shipments, enabling intermodal transport and transshipment via river, sea, road, and rail. It currently has the capability to handle single shipments of up to 1,700 tons each. The water level in the port area remains above 15 meters throughout the year, with no freezing period. It is equipped with berths capable of accommodating 50,000-ton ships, and is known as the \"number one crane on the Yangtze River\". In recent years, the company’s re-equipped docks have successfully shipped over 100 heavy chemical vessels, including China’s largest coke tower, Zhejiang Petrochemical’s ultra-large diameter and ultra-thick-walled (“double ultra”) hydrogenation reactor that represents international leading standards, and the world’s heaviest and most complex to manufacture hydrogenation reactor for boiling-bed residue processing with an annual capacity of 2.6 million tons. This demonstrates the unique market service advantages and delivery capabilities of its port-based facility. The company adheres to scientific development as its guiding principle, takes the transformation of development models and structural adjustment as its key focus, and strives earnestly to become a world-class integrated service provider for high-end heavy equipment. It works hard to enhance the company’s international competitiveness, strengthen its capabilities in independent innovation and management, and contributes to China’s transition from a major equipment producer to a strong equipment powerhouse.