The rise of Liaoyang Petrochemical's major aromatic hydrocarbon base

Under the conditions of market competition, people appreciate the flexibility of small-scale enterprises. But giant aircraft carriers can accomplish major adjustments in the industrial structure in a short period of time. How discouraged and skillful they are! Liaoyang Petrochemical is just like this. In a short period of 3 years, it has transformed from a well-known chemical fiber base in China to a large-scale petrochemical base featuring aromatics, and has built a comprehensive structure that combines the processes of oil refining and chemical production. Petrochemical companies. Based on the sales revenue of 18.8 billion yuan in 2006, Liaoyang Petrochemical achieved a total of over 30 billion yuan in sales in both the listed and unmarketed markets in 2007, an annual increase of more than 60%. The giant aircraft carrier realized the perfect "stay pole jump" of benefits.

Under the correct leadership of the Party Group of China National Petroleum Corporation and the management of CNPC, the brilliance of Liaoyang Petrochemical Company is continuing. They focused on building the goal of “benefit company, harmonious enterprise, and rest assured enterprise”, and worked hard to improve the production and management level, steadily promoted the construction of key projects, actively created a harmonious and stable working environment, and pursued the “building of a large petrochemical base featuring aromatics”. The goal is to play a harmonious movement to open up and rejuvenate.

Industry adjustment source source water

In December 2007, with a short period of more than 20 days, Liaoyang Petrochemical Company had 200,000 tons/year ethylene cracking, 200,000 tons* year of ethylene oxide/ethylene glycol, and 1.2 million tons/year of hydrorefining, etc. The newly-built installation achieves safety, green, and successful operation at one time; together with key facilities such as 800,000 tons/year of PTA and 30,000 tons/year of desulphurization/sulfur recovery, etc. that have been completed and put into operation, Liaoyang Petrochemical Company has achieved “Five Projects” and put into production. It is equivalent to three quarters of the total investment during the "10th Five-Year Plan" period.

The 800,000-ton/year PTA plant is not only a key project of Liaoyang Petrochemical, but also has been listed as the first batch of the first petrochemical projects for the country to rejuvenate the old industrial base in northeast China. After it is put into production, it will not only increase its sales revenue by nearly 2 billion yuan, but also The establishment of a large aromatic base lays a solid foundation.

The 30,000-ton/year desulfurization/sulphur recovery unit is an environmental protection project that is responsible to society and responsible to employees. After the production is completed, 99.9% of sulfides produced during crude oil processing are converted into sulfur products. The indicators such as gas emissions fully meet the requirement of “increasing production without increasing pollution”. The 200,000-ton/year ethylene cracker and the 200,000-ton* ethylene oxide/ethylene glycol plant are key construction projects of China National Petroleum Corporation. After completion and production, the company's olefin production capacity and structure have been further optimized, which will be the company's future development scale. Ethylene and the industrial arrangement of “arylene-related” have laid a solid foundation. The 1.2 million-ton/year hydrotreating unit is a follow-up supporting project for Liaoyang Petrochemical's annual production of 5.5 million tons of crude oil. Once completed and put into operation, Liaoyang Petrochemical's diesel products can achieve high quality Euro IV standards and provide high-quality raw materials for downstream ethylene and aromatics plants. It plays an important role in protecting the company's internal quality and achieving clean production goals.

These five characteristic projects have focused on solving the problems of industrial upgrading and sustainable development of Liaoyang Petrochemical, which has expanded the advantages of Liaoyang Petrochemical Company and will help speed up the construction of the three major industries of oil refining, aromatics and olefins, realizing “large chemical fiber” to “large aromatic hydrocarbons”. The transformation has improved the quality of corporate assets and its core competitiveness.

Liaoyang Petrochemical Company's “Five Projects” were completed and put into production. They called the “Aromatic Chinese” brand and wrote the “China Petroleum” four characters in a new chapter in the revitalization of the northeast old industrial base. The adjustment of the company's industrial structure has expanded its advantages, improved the company's core competitiveness, and promoted the transformation of economic growth mode. The PTA project with an annual output of 800,000 tons, which was listed as the country’s first major construction project to revitalize the northeast old industrial base, has laid a solid foundation for the construction of large aromatic hydrocarbon bases, bringing an annual sales income of 2 billion yuan to the company; The production of an adipic acid conversion project with an annual production capacity of 140,000 tons, the production scale has doubled, and the output has exceeded the sum of the original domestic production, making Liaoyang Petrochemical Asia's largest production base for refined adipic acid. ......

Safe production brings benefits

For businesses, safety is efficiency. For large-scale petrochemical companies such as Liaoyang Petrochemical, the effect of safety on benefits is particularly evident. It is based on the high attention to safety work, Liaoyang Petrochemical Company will safety production policy "safety first, prevention-based" as "life-first, people-oriented"; the first focus is "life first", will Employees’ lives and health are a top priority. They have intensified their safety management efforts, especially by putting “one book, one watch and one card” into practice, making them small enough to change flanges, large enough to get hot, and overhauled to achieve full control, making the long-cycle operation reliability of the device large. With the increase in the scope, the safety production situation has achieved a fundamental improvement. The company has been rated as "Advanced Unit in Safety Production for Group Companies" for 7 consecutive years.

The company focuses on high production and stable production, strengthens the coordination of plans, ensures that resources are allocated in full and in balance, and continuously optimizes processing plans. On the basis of stable operation, the company's economic and technical indicators continue to improve. Among them, several indexes such as light oil yield, processing loss rate, and comprehensive energy consumption have all taken the lead in PetroChina, and are even the best in the country.

The major overhaul of petrochemical plants and the opening and shutdown of vehicles are the top priorities for safety work. In order to ensure that these key links are not flawed, Liaoyang Petrochemical Company deeply studied the "production-controlled" management experience of Dalian Westpac Petrochemical Company and fully implemented the "Four Working Methods" and "Four One Card Operation Methods", requiring each employee to do To "planned work, action plan, step by step confirmation, afterwards summary". The company revised a total of 20 production management systems and 56 sets of safety operation procedures, and established 72 sets of standardized job operation cards, initially forming a system of controlled production management.

In view of the fact that five sets of newly-built devices have been successively driven, reconstructed and overhauled, and implemented in depth, the company effectively exerted the guarantee effect of the controlled system. In the maintenance organization, they focused on the safety, quality, and schedule management of the maintenance process, and successfully completed the maintenance tasks for 22 units and 1358 projects. In the drive of the device, they strictly inspected and accepted according to the 22 items of the provisions of the new device 100, to achieve step-by-step control. These safety measures have ensured the quality of maintenance work. The 800,000-ton* PTA unit has been operating safely for 140 days, setting a new record for the long-term operation of domestic PTA units and ensuring the economic efficiency of the company.

Developing the international market into a vast world

The structural adjustment only solved the product problem and the stable production solved the output problem. But this is not a real benefit after all. How to sell products and sell them well is a greater test for a modern company.

Liaoyang Petrochemical has focused on the implementation of a number of key projects with large scale and strong driving force in the construction of large petrochemical bases featuring aromatics. They will build an annual output of 450,000 tons of PX production equipment for an annual output of 800,000 tons of PTA, not only increasing the annual production capacity of LX Petrochemical PX from 250,000 tons to 700,000 tons, but also optimizing for PX and PTA. Expansion of the aromatics business laid the foundation. However, after the installation of the device, due to the lack of supply of raw materials in the domestic market, PX devices face the dilemma of whether to open or stop.

Faced with the current situation of holding the "golden rice bowl", Ryu Chenghui, general manager of Liaoyang Petrochemical Company, has been exploring. He took seriously the pulse market, aimed at the defects of the operating model, based on the domestic and foreign markets, put forward a new concept of "feed processing"; require companies to go out, please come in, directly enter the international market to play a game, promote international operations, the past The operation mode of "customer processing" changed to the business mode of "feed processing". "Feed processing" is not a general foreign trade method. Although there is only one word difference between it and "custom processing," there are essential differences. "Processing" means that foreigners take their overseas raw materials to the country for processing, and the property rights are not transferred, and then sell the processed products overseas. A domestic company is only a manufacturer and earns only a modest processing fee. In addition, “feed processing” means that companies purchase raw materials from the international market, and then take the processed products to the international market for sales. Compared with China, Liaoyang Petrochemical is more like a “foreigner”. The "feed processing" mode not only enables the processor to firmly control the initiative of raw material procurement and product export in the international market, but also enjoys preferential policies such as zero tariff and zero VAT provided by the country. The entire commercial operation cost is greatly reduced. This kind of thinking adjustment must not only have a global perspective, but also have the ability to control and judge the direction of products under the global market environment. It is necessary to “see what we know” and be smart.

Liaoyang Petrochemical fully utilizes the characteristics of “two resources and two markets” at home and abroad to take the lead in adopting the new feed processing commercial operation mode in the northeast, importing raw materials of mixed xylene (MX), producing paraxylene (PX) and pure benzene. (BZ) products and push them to the international market. Only from the known statistical data for the 10 months of 2007, Liaoyang Petrochemical Company achieved total import and export trade of USD 560 million, an increase of 273% from the same period of last year, which is 1.2 times of its total trade volume in the previous 20 years. The company's import and export of chemical goods totaled 542,200 tons, and 109 vessels for import and export of imports and exports accounted for about 70% of the total volume of liquids handled by Dalian Port. Among them, 305,900 tons of mixed xylene (MX) was imported, 226,700 tons of paraxylene (PX) was exported, and 29,600 tons of pure benzene (BZ) was imported.

Liaoyang Petrochemical Lianmao, which is in charge of foreign trade, has become the largest import and export trading company for aromatic products, creating a new record for Liaohua’s foreign trade history, and also creating the first record of total imports of MX and export PX and BZ. The increase in foreign trade in Liaoyang City thus ranks first in Liaoning Province.

Liaoyang Petrochemical has built its own information network using the internationally renowned Platts company's market sales price and information platform to accurately and timely understand the global sales of aromatics purchases and sales, and to obtain first-hand information. On this basis, Liaoyang Petrochemical purchases MX raw materials in the global market according to standard international trade methods, and utilizes the production scale advantages of annual output of 700,000 tons of PX and the technological advantages of product purity of 99.7%% to produce other companies that are difficult to produce. High-quality PX and BZ products; At the same time, the sale of PX to large international companies has stimulated the demand for PX in the international market, quickly establishing a pivotal position in the international aromatics market and releasing commercial potential.

“This kind of real-time marketing and sales method enables us to grasp the current benefits of feed processing and reduce operational risks.” With its own operational strength, Liaoyang Petrochemical Company has occupied the major spot markets of PX and BZ in Asia. Liaoyang Petrochemical's global procurement and global sales strategy directly translates the scale advantage into a global market influence, which not only realizes a substantial profitability of the company, but also plays a role in checking the domestic sales of PX and BZ products in terms of prices.

Harmony construction brings boundless vitality

Promote harmony with development and ensure development with harmony. While accelerating its own development, Liaoyang Petrochemical Company attached great importance to harmonious construction and realized the “product contributing society, benefits remain in the enterprise, and benefits the return of its employees”, creating a solid foundation for the development of large aromatic hydrocarbon bases. The company insists on the coordinated development of listing and non-listing, the whole people and the collective, the main business and the auxiliary business, and brings together the billion-party company and the newly-formed mining area business unit to Liaohua.

They unified resources in a balanced manner, rationally distributed benefits, and made steady efforts to jointly manage and establish a 5+1 management model for non-listed companies, which enabled the company to exhibit an extremely harmonious internal atmosphere and to basically form the “Greater Liaoning View”.

The company advocates the concept of harmonious development and effectively fulfills the "three major responsibilities" of state-owned enterprises. It has built 300,000 square meters of limited-price commodity housing and 100,000 square meters of affordable housing. This year, Liaoyang Petrochemical Company also started the construction of affordable housing for 110,000 square meters. The 380,000 square meters of affordable housing in Longyuan Community was also completed in a one-time plan. The company has built 255 low-rental turnover houses. In 2007, more than 2,000 families moved to their new homes. The company has also invested tens of millions of yuan in the maintenance of the retaining wall and renovation of the retaining wall, the drinking water of the surrounding villages, and the education of the surrounding areas.

The company has always insisted on motivating employees on the job, taking care of retired employees, caring for laid-off comrades, caring for families with special hardships, and working hard to build a harmonious situation. Under the company's strong support and encouragement, Liaoyang Petrochemical Company's team won the championship of substation, gas welder and engine repair bench professional team in the company's professional skills competition this year, and the runner-up of the polypropylene plant operating competition team, won a total of 13 gold medals and silver medal 5 Blocks, bronze medals, the total number of winning the prize reached 55 people, in the contest site littered "Liaohua cyclone", has been highly praised by the group companies, joint-stock companies, all sectors of society and brothers. The "senior blue-collar" team became the company's famous brand in the Chinese petroleum system and became a beautiful business card for Liaoyang Petrochemical Company. Every year on the New Year's Day, Spring Festival, and on the eve of the May Day, the company paid visits and condolences to a large number of non-employed groups, granted grants, and continuously extended the development results of the company to the employees.

In line with this, the company started by improving the conditions of production and work for its employees and continued to let employees feel the warmth of the corporate family. Continue to improve the medical conditions of staff hospitals, effectively improve the level of medical insurance treatment, increase investment in education and training, and continuously improve staff education.

The development of Liaoyang Petrochemical has effectively promoted the development of the local economy. The contribution of Liaoyang Petrochemical has accounted for nearly half of the financial revenue of Liaoyang City. In November 2007, relying on the construction of Liaoyang Petrochemical's aromatic hydrocarbon base, Liaoyang City organized the “Liaoyang Aromatic Hydrocarbon Industry Forum” to plan the construction of an aromatic hydrocarbon base in Liaoyang City. An industrial cluster with Liaoyang Petrochemical as its core, covering chemical, chemical fiber, plastic, and other industries has shown tremendous vitality.