Dongfang Shenghong Refining, which the market has been paying attention to for a long time, is finally about to hit the ground running. It is understood that the Shenghong Refining and Chemical Project is preparing for commissioning and commissioning!
Recently, the editor asked Dongfang Shenghong’s secretary-general about the refining and chemical situation. The company replied that the Shenghong refining and chemical project is preparing for commissioning and commissioning during the Spring Festival.
The preparation for commissioning and commissioning also means that Dongfang Shenghong will officially become the third largest private refining and chemical enterprise in China.
The dream of refining is about to come true
Dongfang Shenghong becomes the largest single-line production capacity of refining and chemical products in my country
my country’s PX has been strangled by foreign countries for a long time, and the profit margins are large. Therefore, strong chemical fiber companies often have a refining dream. After the country decentralized the approval power of PX projects in 2014, private chemical fiber leaders have expanded to upstream refining, taking the lead in completing The integrated Hengli, Rongsheng and Hengyi will benefit first, and their performance has fully proved the cost advantage of large single lines and the strong profitability of integration.
Dongfang Shenghong also has a refining dream. As one of the three major private refining projects supported by the State Council, the total investment is approximately 67.7 billion yuan and the crude oil processing capacity reaches 16 million tons per year. On September 17, 2018, Shenghong received the national approval for the refining and chemical project, and received the approval report on December 12. Two days later, the opening ceremony of the 16 million tons integrated refining and chemical project was held in Xuwei. This major project in the province includes an annual production of 2.8 million tons of aromatics, 1.1 million tons of ethylene and downstream derivatives projects, as well as supporting 300,000 tons of crude oil terminals, 3 million cubic meters of storage and utility islands, etc.
A 16-million-ton-per-year atmospheric and vacuum distillation unit that is ready for commissioning and commissioning
Fang Wei, Secretary of the Lianyungang Municipal Party Committee, told reporters that on November 19, 2021, the provincial government officially approved the “Lianyungang Petrochemical Industry Base Overall Development Plan (Revised)” to “expand” the construction of a world-class large-scale petrochemical industry base, and also for Shenghong The construction of high-end petrochemical industry chains and industrial clusters provides development space. It is understood that Shenghong Refining and Chemical’s 16 million tons/year refining and chemical integration project has a single-line scale of 16 million tons. It is currently the largest single-line production capacity in my country. Its single-line scale is more than twice the average size of global refineries. It is the largest single-line refinery in my country. Nearly 5 times the average size.
Acquisition of EVA leader Sierbon Petrochemical
Dongfang Shenghong enters a new track
At the same time, when the refining dream is about to be realized, Dongfang Shenghong has taken the initiative to enter the new energy and new materials track.
In May this year, Oriental Shenghong officially launched the reorganization of Sierbon Petrochemical, a subsidiary of the same parent company Shenghong Group, and will enter the new energy and new materials track, which will help create Oriental Shenghong’s “refining + polyester + new Materials” integrated petrochemical leader. On the evening of July 9, Oriental Shenghong issued an announcement stating that the company planned to purchase 100% of the equity of Sierbon by issuing shares and paying cash. The final transaction price was determined to be 14.36 billion yuan. At present, the major asset restructuring and acquisition of Sierbon has been reviewed and approved by the company’s board of directors and shareholders’ meeting, and still needs approval from the China Securities Regulatory Commission.
In recent years, with the rapid development of the photovoltaic industry, the demand for upstream photovoltaic EVA has grown significantly, making EVA companies very popular in the market. According to a research report by Cinda Securities, my country’s current import dependence on photovoltaic material EVA is close to 60%. The cumulative installed capacity of my country’s photovoltaic market has a five-year average annual compound growth rate of 43.48%. With the gradual implementation of “carbon neutrality” policies, my country’s photovoltaic market still has broad space, and the demand for photovoltaic materials EVA is a blue ocean.
At present, there are very few domestic manufacturers with the capacity to mass-produce photovoltaic EVA. There are only three companies, Sairpan, Levima Xinco and Ningbo Formosa Plastics. The cumulative production capacity available for the production of photovoltaic EVA is less than 400,000 tons. It is understood that Sierbon is the largest domestic supplier of EVA. In the field of EVA photovoltaic film materials, its production capacity ranks first in the country, accounting for 31%. According to public information, the MTO unit currently in operation in Sierpan has a design production capacity of approximately 2.4 million tons/year (calculated as methanol), with downstream supporting facilities of 300,000 tons/year EVA, 180,000 tons of EO, 520,000 tons of AN, and 17 Thousands of tons of MMA.
In addition, Sierpan announced at the end of 2019 that it plans to invest 10.8 billion yuan to build the second phase of the project, adding a 700,000 tons/year propane dehydrogenation (PDH) unit under construction, and supporting 520,000 tons/year AN and 180,000 tons of MMA ;According to the plan, the project is scheduled to be completed and put into production by the end of 2021.
Oriental Shenghong creates unique
Aromatic hydrocarbons and alkenes “double chain” mode
Dongfang Shenghong’s main businesses include chemical fiber, petrochemicals, thermoelectricity and other trade. It currently has 2.3 million tons/year polyester filament production capacity and 3.9 million tons/year PTA production capacity. Since last year, Dongfang Shenghong has had many new production capacities/projects under construction/advancement: following the official launch of Honggang Petrochemical’s new 2.4 million tons/year PTA expansion project in March 2021; in July, the company announced again that it planned to build 500,000 tons of super-simulated functional fibers continue to increase its main filament business; at the same time, it acquires Sibern, the domestic leader in high-end EVA photovoltaic materials. Currently, the second chemical fiber production base in Suqian Siyang continues to build a production capacity of 250,000 tons/year of recycled fiber and 500,000 tons/year of functional fiber.
Details of projects under construction announced in its semi-annual report
At this point, Shenghong has not only opened up the integrated layout of the industrial chain from “a drop of oil to a thread”, but has also entered the new energy and new materials track ahead of the curve, forming a unique “double chain” model of aromatics and olefins among domestic peer companies.
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