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Shandong Energy’s Annual Chemical Products Records 15 Million Tons

2021-01-25 17:27:05

Ever since the reorganization, Shandong Energy Group (“the Group”) has been concerned by all walks of life. It was recently learned from the Group that as at 31 December 2020, given various adverse impact including the COVID-19, its total annual production of chemical products still exceeded 15 million tons, and the synergic production and sales volume of methanol ranked No.1 in China, exceeding the target and making a new record in history. 

“In the most difficult time, the main transportation lines for chemical products were restricted and regulated, and most downstream factories were shut down. As the liquified chemicals inventory kept increasing, the company faced the danger of load and production reduction at any time, and the pressure could be imagined.” Mr. Ren Yi, chairman and party secretary of Yankuang Chemical Company told the reporters. “Facing the negative impact of the pandemic and the severe losses across chemical industry, Yankuang Chemical focused on ‘combating the pandemic, maintaining safe and stable production, reducing cost, expanding new markets and increasing profits', effectively overcome the negative impact of the pandemic, and still realized a profit of over RMB700 million in 2020.”

“After the pandemic stabilized last year, we concentrated on increasing production and reducing consumption, and worked at full capacity to make up for the output affected by the pandemic”Mr. Zhang Ling, deputy party secretary and general manager of Lunan Chemical Company said. Lunan Chemical, No. 1 in chemicals production and scale among Yankuang’s subordinate chemical companies, has making full use of its advantages in system interconnection and implementing a more flexible integrated operation mode. And the alcohol-aldehyde combined technological upgrading project was incorporated into the system on 4 November 2020. Based on the previous two products, i.e. normal butanol and isobutanol, two new products, namely normal butyraldehyde and isobutyraldehyde were added, the more flexible products of 4 kinds were launched. In December, by further optimizing the potentials, the yield of isobutyraldehyde was successfully increased by 10%. Till 7 December 2020, the annual acetic acid output of Lunan Chemical successfully broke through 1 million tons, ranking top three in China.

As at 4 December 2020, Yankuang Guohong Company’s methanol production has exceeded 650,000 tons, 25 days ahead of schedule to achieve the annual goal. In 2020, Guohong Company carried out lean management and comprehensively deepened the production and control mode of “333”. By continuously optimizing the operation system, scientifically arranging the maintenance plan, maximumly guaranteeing the effective operation time of the device, the daily methanol output hit a record high repeatedly, breaking the daily and shift production records for 14 times.

A sudden external power failure caused by outside power grid led to the whole system outage in Yanzhou Coal Yulin methanol plant for the first time on 8 November 2020. While, benefiting rapid reaction, orderly-organized safety equipment stoppage & process treatment, and concerted cooperation of all employees of the factory, the system restored full production only with 47 hours and 47 minutes.

Due to the requirements of pandemic prevention and control, Xinjiang Coal Chemical Company had to close the plant twice for more than 90 days, and the harsh winter made it extremely difficult to complete the target. While they insisted on internal control, tapping potentials to ensure stable and high production and efficiency, and formulated 16 hard measures to reduce cost and increase efficiency. Thus the equipment reached running at full load, unit consumption pressure minimized, alcohol and ammonia output reached 2,200 tons per day, and made the impossible possible.

Under the pandemic impact and unstable market environment, Shenglong Company of Zaozhuang Mining Group, assured coal quality stable and controllable by a series of applicable measures, namely sticking to the production target, constantly strengthening process quality management, optimizing coal blending, etc. 968,000 tons of higher value-added standard first-grade coke (increasing 17.55% compared with the same period of last year), 1.67 million tons of coke and 176,600 tons of methanol were produced in 2020.

Inner Mongolia Rongxin Chemical, the first company within the Group to start the construction of “intelligent factory”, is promoting the transformation and upgrading of traditional coal chemical production to intelligent manufacturing. The profits from waste heat recovery and power generation, by-products export, tax planning and others reached about RMB360 million in 2020. The output of main products exceeded 2.1 million tons, completing the phase I target of the company's “Task by Three Steps in Ten Years”.

Chairman Li Xiyong pointed out thatthe eye-catching performances cannot be achieved without loyalty and responsibility, wisdom and sweat, and more cannot be separated from the integration effect and the “six major synergies” effect after the joint reorganization of the Group. Li Xiyong also said in the next step, the Group will comprehensively optimize and improve the value chain of chemical products, build a deep processing base for high-end new chemical materials in the province, cultivate and expand a chemical raw material production base outside the province, so as to achieve multiple effect, multiplier effect and geometric effect of “one plus one equals more than two”.