In the past ten years, private refining and chemical companies have made vertical integration breakthroughs from the bottom up using polyester as the starting point. While realizing the layout of the entire industrial chain from “a drop of oil” to “a thread”, they have also expanded and improved the mid- and upstream industries. layout. Entering a new period of development during the “14th Five-Year Plan”, private refining and chemicals are targeting the field of new chemical materials spurred by the development of domestic “new consumption” and “hard technology”, relying on the rich “chemical raw material library” provided by the upstream “big chemical” platform. And the downstream high-end chemical new materials industry chain will be laid out to start a new round of growth.
Achieved output value of 103.3 billion yuan from January to October
Zhejiang Petrochemical has entered a 100-billion-level enterprise with an output value
Since the beginning of this year, Zhejiang Petrochemical’s 40 million tons/year refining and chemical integration project has been successfully promoted, and the comprehensive benefits have been continuously amplified. According to statistics, from January to October 2021, Zhejiang Petrochemical processed 20.76 million tons of crude oil and achieved an output value of 103.3 billion yuan. This means that another domestic private refining and chemical enterprise with an output value of 100 billion has been born.
In 2014, the State Council clearly proposed that “the refining and chemical integration projects of petrochemical bases determined by the national plan should be opened to social capital,” opening the door to the entire society for the once monopolized industry. Zhejiang Zhoushan Green Petrochemical Base Project came into being. The Zhejiang Petrochemical 40 million tons/year refining and chemical integration project with a total investment of over 200 billion yuan is the world’s largest investment single industry project and the largest investment project by a domestic private enterprise so far. After the project is completed, it can significantly reduce the price of related domestic petrochemical industries, alleviate import dependence, and provide broader space for the development of midstream and downstream enterprises. Relying on the location advantage of Zhoushan port, Zhoushan green petrochemical base can more effectively empower the Yangtze River Delta and even the hinterland of the Yangtze River Delta.
The project was put into operation on December 30, 2019. On the one hand, it has built an integrated industrial chain of “crude oil-aromatics (PX), olefins-PTA, MEG-polyester-spinning-texturing” to achieve high-quality and efficient large-scale production. production, reduce product costs, further enhance profitability, improve overall strength and risk resistance, and achieve leapfrog development; on the other hand, it will improve my country’s voice in the aromatics and ethylene industry to a certain extent, and drive the development of mid- and downstream chemical products production, processing and sales to achieve the company’s economic and social benefits.
Subsequently, the second phase of Zhejiang Petrochemical Company was announced to be fully operational at the Zhoushan base on January 12, 2022. Guo Hekuan, Vice President of Zhejiang Petrochemical, once said in an interview: “The second phase of the 20 million tons/year refining and chemical integration project is advancing faster than the first phase. In this area, we have also planned 2.5 phases and two more sets of ethylene cracking device”. Zhoushan Green Petrochemical Base will also focus on the third phase of development and continue to expand the scale of the industry. It will not only refine and strengthen the mid- and downstream petrochemical industry chain, but also unite Zhoushan Fine Chemicals and Ningbo New Materials to promote the integration of the Yongzhou-Zhou petrochemical industry.
The next giant with a revenue of 100 billion, it is it!
In recent years, domestic large-scale refining and chemical projects have been intensively put into production. Driven by demand due to factors such as the advent of cyclicality and the transfer of overseas orders, there has been endogenous growth, and the main business income has continued to increase. The strong ones, Hengqiang, Hengli Petrochemical, and Rongsheng The rankings of Petrochemical, Dongfang Shenghong and Tongkun all improved compared with the previous year. Among them, the market value of Hengli Petrochemical and Rongsheng Petrochemical is far ahead of the other three companies.
Especially since 2020, affected by the epidemic, insufficient demand from the downstream consumer market has been a major challenge facing the textile industry, and the prosperity of the chemical fiber industry has inevitably declined. Listed polyester companies are basically large-scale enterprises that need to ensure continuous production of their devices. Although there are good production and sales ratios in certain periods, overall they face greater inventory pressure. Judging from the specific situation of enterprises, enterprises that implemented a balanced upstream and downstream integrated development strategy earlier have demonstrated good competitive advantages and risk resistance in the process of coping with this severe market situation.
Shenghong Group is currently making every effort to promote the construction of integrated refining and chemical projects. The scale of the Shenghong refining and chemical integration project is 16 million tons/year of oil refining, 2.8 million tons/year of paraxylene, 1.1 million tons/year of ethylene, etc. Recently, an investor asked the Dongfang Shenghong Secretary General about the refining and chemical situation. The company Answer: During the Spring Festival, the Shenghong Refining and Chemical Project is preparing for commissioning and commissioning. It is reported that the Shenghong refining and chemical integration project plans to start oil testing in February 2022, start secondary refining processing in March, and start chemical equipment in the second half of the year, ensuring that the entire refining and chemical integration industry chain will be opened within 2022. With Shenghong Refining and Chemical’s 16 million tons/year refining and chemical integration project about to be put into production, this means that Oriental Shenghong will officially become the third largest private refining and chemical company in China.
The domestic petrochemical leader Dongfang Shenghong has made a big move into the fields of new materials and new energy to tap into the “dual carbon” market, and its performance has exploded! On the evening of January 5, Oriental Shenghong released a performance forecast, predicting a substantial profit of 4.1 billion to 5 billion yuan in 2021, an increase of 435% to 552.44% over the same period last year (after retrospective adjustment). The substantial growth in performance indicates that Dongfang Shenghong’s major asset restructuring has come to a successful conclusion. From printing and dyeing to chemical fiber to petroleum refining, Dongfang Shenghong has continued to expand through a bottom-up entire industry chain and has gradually grown into a petrochemical giant with a revenue of over 100 billion.
Not surprisingly, it is the next giant with a revenue of 100 billion!
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