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New Policies Will Be Issued to Promote the Domestic Manufacturing of Large-Scale Petrochemical Equipments
Publishing Time:2013/9/4 17:48:25 Visitors Traffic:[]

The State Development and Reform Commission has issued the Plan of Further Promoting the Domestic Manufacturing of Large-Scale Petrochemical Equipments (draft) to such state-owned enterprises as China Petrochemical Corporation, China National Petroleum Corporation, etc., which included a detailed catalog of import prohibited or restricted products as well as favorable policies for domestic equipments in terms of procurement and management of the first equipment (set) and major devices. In addition, the first purchase system was also introduced by the MOF in view of enhancing government procurement of independently innovated products. The successive introduction of such policies indicate that under the support of the Chinese government, the domestic manufacturing of major technical equipments will enter the substantive stage after the Working Conference on Accelerating the Revitalization of the Equipment Manufacturing held by the State Council in Xi'an in June, 2006.

The average value of the domestic equipment market is approx. 75 billion yuan.

Large-scale petrochemical equipments are included in the 16 developing focuses. According to the Draft, 75% of the petrochemical equipments shall be localized during the 11th Five-Year Plan period.

It is learned that the current demands on petrochemical equipments in China has reached the highest level. The outputs of the newly built refineries and new ethylene projects are approx. 8~10 million tons and 0.8~1 million tons respectively. Relevant experts said that if this objective is accomplished, domestic equipment manufacturing will reach 75 billion yuan, accounting for 3/4 of the total demands on petrochemical equipments, namely 100 billion yuan.

As foreign advanced technologies are adopted by nearly all the domestic large-scale petrochemical projects and domestic equipments have hardly any chance to be awarded, it is proposed in the Draft that the localization of large-scale petrochemical equipments shall be started from the very beginning, with importance attached to every link of the bidding process, and all the new projects of petrochemical enterprises shall be provided with an equipment list, prohibiting any imported equipments that China has already been capable of manufacturing and promoting while restricting those that China has already been capable of manufacturing while still needs further efforts on their promotion.

According to the Draft, import-prohibited equipments include 0.8~2-million-ton hydro-cracking reactors, 700,000-ton cracked gas compressors and 300,000-ton propylene compressors, and import-restricted equipments include 1-million-ton cracked gas compressors, 1-million-ton propylene compressors, 0.6-million-ton PTA air compressors, etc.

Priority shall be given to the key projects of China.

Dr. Zhang Xiaofeng, the Deputy Manager of Beijing Yinuo Weisen Science & Technology Co., Ltd., which is engaged in large-scale petrochemical engineering technology contracting, believes that China’s petrochemical equipment design and manufacturing capabilities have now reached an adequate level, China has now already been capable of independent design and manufacturing of petrochemical equipments, and even internationally most advanced level has been reached in definite fields. The percentage of home-made refining devices and ethylene producing equipments with an annual output of 0.3 million tons have reached above 90% and above 80% respectively, and home-made PTA units have also reached a certain percentage. This remarks a deviation from the originally longstanding reliance on outfit import of China’s petrochemical industry. Breakthroughs have also been made with megaton core ethylene producing equipments, which have already been put into production and completely got rid of the reliance on import.

Of the 510 megaton ethylene cracking gas compressors annually produced by the SINOPEC Maoming Company, 448 were home-made, accounting for 87.8% of the total, which is the highest on the records of domestic technology utilization ratio as well as percentage of and home-made parts. The observations of operating cracking gas compressors with an annual output of 640,000 tons per year as provided to the SINOPEC Maoming Company by Shenyang Blower Factory show that the performance of the set has reached the international most advanced level and the longstanding reliance on import has finally come to an end.

It is also stressed by the Draft that key projects shall be based on in order to enhance the percentage of home-made key equipments. The existing key projects include the megaton ethylene projects in Zhenhai, Tianjin and Fushun, which shall obtain prior approval by the government and be given priority in the budget layout and supported by interest subsidies, allowance, capital injection, etc.

It is revealed by the Director of the /Refinery Institute of CNPC, Zhang Fuqin that the promotion of domestic manufacturing of large-scale petrochemical equipments has already been imperative, and the government shall introduce preferential policies in order to enhance the popularity of home-made equipments. China has witnessed a positive integration with or even a notch above the world in terms of refining and production technologies, and the advanced manufacturing techniques have been basically mastered. China has already been capable of independent designing and manufacturing of the necessary equipments. However, the continuous increase in the size of ethylene plants has caused difficulties in enhancing the domestic manufacturing of key parts. He also stresses that efforts shall be made to accelerate the industrialization and enhance the percentage of home-made large-scale ethylene plants, strengthen technological innovation and achieve major breakthroughs in key technologies and key equipment.

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