【HaiChuan Discussion】The Shanxi Institute has been acquired by Shanghai Electric – how are the chemical engineering design institutes in various provinces doing now?

The Three Kingdoms and Warring States periods needed to come to an end; after a long period of division, there must be unity, and after a long period of unity, there must be division. Such is the general trend of the world.

It’s not that simple; many chemical design institutes were originally part of the public service system

The Shanxi Chemical Engineering Design Institute currently has 200 employees on staff, with over 80% holding intermediate or senior professional titles. It has 100 professionals possessing various types of professional and registration qualifications. Thanks to its strong technical capabilities and advanced technical equipment, the institute has won the trust of many clients both within and outside the province, receiving high praise from them all. Services such as engineering design and consulting cover industries including chemicals, petrochemicals, pharmaceuticals, coking, construction, municipal engineering, environmental engineering, surveying, environmental impact assessment, project supervision, and general engineering contracting.

Founded in 1958, Shandong Chemical Engineering Planning and Design Institute currently has over 500 employees, including 7 researchers, 156 senior engineers, 96 engineers, as well as 256 professionals holding various types of registration credentials such as first-class registered architects. The institute’s registered capital is 10 million yuan. It has a Ministry of Commerce, a Department for International Business Cooperation, a Project Management Department, a Technology and Quality Department, as well as six specialized departments for chemical engineering processes, piping, equipment, civil engineering, electrical automation, and utility systems. There are also departments such as the Procurement and Construction Department, the Thermal Power Design Office, the Civil Building Design Office, the Gas Engineering Design Office, Huayu Costing Co., Ltd., Zhengda Construction Supervision Company, and Hengtai Safety Assessment Company. In 1999, it was fully incorporated into China National Chemical Engineering Corporation, and in October 2006 it became part of China National Offshore Oil Corporation. In 2008, it was merged into the listed company Offshore Oil Engineering Co., Ltd. (stock code 600583) to jointly build a world-class heavy industry enterprise. Shandong Chemical Engineering Planning and Design Institute holds certificates of Class A for general project contracting, design in the fields of chemicals, petrochemicals, and pharmaceuticals, engineering consulting, environmental protection engineering design, and project supervision; it also has Class A certificates for project cost estimation and construction projects. It holds Class B certificates for design in the fields of petroleum, power, light industry, thermal power, and gas, as well as Class B certificates for environmental impact assessment. The institute possesses certificates for pressure pipeline design and for designing pressure vessels of Category III under federal regulations, and it is qualified for technical and economic import and export activities. The Ministry of Construction has approved our institute as a Class A comprehensive design institute for the chemical, petrochemical, and pharmaceutical industries. The design, contracting, and supervision services of this company obtained ISO9000 quality system certification in 1998; it boasts a comprehensive range of professional services and a high level of technical expertise, making it a strong, integrated design firm that combines design, contracting, and supervision functions.

The Hebei Chemical Industry Research Institute is affiliated with Jizhong Energy Group Co., Ltd. Since its integration into Jizhong Energy Group, by leveraging the group’s advantages in terms of funding, projects, and management, the institute has adopted modern management systems and business models. It has increased investment in research and development, accelerated industrial and technological transformation, and expanded the scale of its key product lines. As a result, the Chemical Research Institute has evolved from a traditional chemical industry operator into a new type of research institution that focuses on coal chemistry and petrochemicals, while also engaging in various other areas such as pesticides, fine chemicals, and food additives. The institute has a Coal Chemical Engineering Research Institute, a Fine Chemicals Research Institute, and a Pesticides Research Institute. Additionally, the Hebei Province Chemical Product Quality Supervision and Inspection Center, the Hebei Province Petrochemical Environmental Protection Testing Station, the Hebei Province Fine Chemicals Pilot Production Base, and the Hebei Province Petrochemical Technology Information Center are all located within this institute. It also edits and publishes the magazine \"Hebei Chemical Industry\". At present, under the proper leadership of Jizhong Energy, the Hebei Province Chemical Industry Research Institute has its staff full of enthusiasm and confidence. It has clarified property rights issues, increased funding allocations, stepped up research and development efforts, and strengthened and improved its testing capabilities. The institute is striving to become a first-class research institution in the province, leading at the national level, and renowned internationally, as well as a key base for testing chemical products across the province. We firmly believe that on the platform provided by Jizhong Energy Group, Hebei Chemical Industry Research Institute will have an even brighter future. At the same time, we are willing to cooperate with colleagues at home and abroad, working with sincerity, rigor, and innovation to advance scientific progress and productivity, and joining hands to create a more splendid future together.

Let me share my personal views: 1. The petrochemical design industry is one with slim profits; one has to work hard to earn a living in it. Have you heard of any big bosses coming from this industry? No. 2. Currently, there are hundreds of small petrochemical design institutes in China, resulting in an oversupply. 3. Due to insufficient standardization efforts in the country, design institutes often have to carry out repetitive tasks, resulting in low efficiency. 4. There is a serious disconnect between design and production; many designers have no or very little practical experience in production. 5. It is hoped that large, capable manufacturing enterprises will acquire design institutes to promote close integration between production and practice.

In the future, it is an inevitable trend that smaller and medium-sized design institutes (engineering companies) with limited capabilities will be acquired by or come under the control of large corporate groups. This will also help to promote the development of China’s construction industry and contribute to enhancing the country’s ability for independent innovation.

Anhui Provincial Hospital was acquired by Shenhua Beijing Engineering Company.

Chongqing Chemical Engineering Design Institute was fully transferred to Chongqing Chemical and Pharmaceutical Group.