Seven departments: Promoting the safe renovation of old petrochemical and chemical plants

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　　Seven departments, including the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, the People’s Bank of China, the State Taxation Administration, the State Administration for Market Regulation, and the China Banking and Insurance Regulatory Commission, jointly issued the \"Implementation Plan for Promoting Equipment Upgrades in the Industrial Sector\" recently, proposing to facilitate the safe renovation of old facilities in the petrochemical industry. 　　The plan proposes that by 2027, investment in equipment in the industrial sector will have increased by more than 25% compared to 2023. The adoption rate of digital R&D and design tools among industrial enterprises above a certain scale, as well as the proportion of key manufacturing processes that utilize numerical control, will exceed 90% and 75% respectively. All industrial enterprises above a certain scale in major industrial provinces, cities, and key parks will undergo digital transformation. Production capacity in industries that fall below the established energy efficiency standards will be phased out, while the energy efficiency of major energy-consuming equipment will reach energy-saving levels. The level of intrinsic safety will improve significantly, innovative products will be promoted more rapidly, and the share of advanced production capacity will continue to rise. 　　The plan outlines 4 major initiatives comprising 12 tasks, including an initiative to upgrade advanced equipment, a digital transformation initiative, an initiative to promote green equipment, and an initiative to improve the level of intrinsical safety. 　　The plan proposes to promote the safe renovation of old petrochemical and chemical plants. Promote the application of process technologies such as continuous processing, microreactors, and supergravity reactions, as well as digital technologies like optimized reactor control and predictive maintenance for pumps; meanwhile, upgrade older gasification furnaces, reactors (vessels), distillation towers, pumps, heat exchangers, storage tanks, and other equipment. Properly address safety risks associated with old installations, such as high risks in their processes, high failure rates of moving equipment, and leakage issues with stationary equipment, thereby improving the inherent safety level of the industry. 　　The plan requires that in key industries such as petrochemicals, pharmaceuticals, shipbuilding, and electronics, a batch of advanced equipment be upgraded in relation to pilot-scale testing and verification processes including design verification, test verification, and process verification, in order to enhance engineering and industrialization capabilities. Focus on upgrading advanced equipment such as model manufacturing devices and experimental analysis instruments in the design verification phase; update testing instruments for mechanical testing, optical testing, environmental testing, etc., in the testing and verification phase; upgrade specialized equipment for tests such as environmental adaptability tests, reliability tests, process verification tests, and safety compliance tests, as well as equipment for sample preparation and pilot production including specialized sample making, material processing, electronic assembly, and mechanical processing, in the process verification phase; and upgrade instruments and equipment for electronic measurement, non-destructive testing, and intelligent inspection in the inspection and testing phase. 　　In addition, the plan proposes that the raw material manufacturing industry accelerate the deployment and use of new types of intelligent equipment such as driverless transport vehicles, and promote the intelligent transformation and upgrading of key process equipment such as catalytic cracking and smelting. Accelerate the deep integration of next-generation information technology with the entire manufacturing process and all relevant elements, and promote breakthroughs in manufacturing technologies, process innovation, lean management, and business process reengineering. Large group enterprises and industrial parks are encouraged to establish industrial Internet platforms with their own unique features. Promote the widespread use of energy-saving, environmentally friendly green equipment in key energy-consuming industries and critical processes. Promote the improvement of energy efficiency in key energy-consuming equipment. For industries such as petrochemicals and chemicals for which standards regarding water intake and usage have already been established, efforts are being made to promote water conservation in industry and the recycling of wastewater. Industrial cooling systems and wastewater treatment and reuse systems are being upgraded, and a number of equipment items such as cooling towers are being replaced. 　　To ensure the effective implementation of relevant policies and measures, the Plan proposes to increase financial support for equipment renewal and technological upgrades in the industrial sector, and to include eligible key projects within the scope of funding such as investments from the central budget. Increase tax incentives for specialized equipment used in energy and water conservation, environmental protection, and safe production, and include digital and intelligent upgrades within the scope of these incentives. 　　At the same time, strengthen financial support by establishing special reloans for technological innovation and technological upgrading. Formulate guidance plans for the technical transformation and upgrading of industrial enterprises, strengthen cooperation between banks and enterprises, recommend key technical transformation projects with financing needs to financial institutions, and increase lending for the medium- and long-term needs of the manufacturing sector. 　　In addition, the Plan encourages local authorities to strengthen the provision of resources needed for enterprise technological transformation projects, by including aspects such as land use and energy consumption related to such projects within the scope of priority support. For technological transformation projects that do not require additional land and involve mainly equipment upgrades, a system of commitment registration is promoted to simplify the preliminary approval procedures.