On December 28th, the 16 million ton refining and chemical integration project of Shenghong Refining and Chemical (Lianyungang) Co., Ltd., a wholly-owned subsidiary of Dongfang Shenghong (000301. SZ), was fully put into operation, marking the entire process of completing and putting into operation the largest refining and chemical integration project in China.
It is reported that the above refining and chemical integration project is the core raw material platform for Dongfang Shenghong to build a “1+N” new pattern of diversified industrial chains such as new energy, new materials, electronic chemistry, and green environmental protection. Miao Hangen, Chairman of Dongfang Shenghong, said at the signing ceremony, “As a leading project in Lianyungang National Petrochemical Industry Base, the full operation of Shenghong Refining and Chemical is an all-round extension, supplement and strengthening of our high-end industrial chain.” The petrochemical industry chain. ” https://forum.stoneitech.com/
It is worth mentioning that the refining and chemical integration project has many “firsts” in China, such as the largest diameter tower, the heaviest monomer fixed bed reactor, the largest atmospheric and vacuum distillation unit, and cracking furnace. In 2023, with the comprehensive production of the refining and chemical integration project and the continuous expansion of production capacity, Dongfang Shenghong will usher in new development.
According to public information, Dongfang Shenghong is a leading private petrochemical enterprise. The company not only has a whole industrial chain layout of “from a drop of oil to a piece of silk”, but also has entered the field of new energy and new materials, forming a business matrix of “refining+polyester+new materials”
Layout of new energy and new materials
As a “veteran player” of the petrochemical circuit, Dongfang Shenghong has closely followed the trend of the times, keenly insight into industry opportunities, and layout the new energy and new materials circuit in recent years.
Dongfang Shenghong has unique advantages in deeply cultivating new energy and new materials.
On the one hand, Dongfang Shenghong’s vast chemical background provides fertile soil for the development of its new energy and new materials businesses. Shenghong Refining and Chemical Integration Project follows the path of small oil head and large chemical industry. The project is “less oil and more” and has the competitiveness to extend to high-end downstream chemical materials.
On the other hand, the subsidiary of Dongfang Shenghong has industry-leading technology and scale advantages. Jiangsu Sierbang Petrochemical Co., Ltd. (hereinafter referred to as “Sierbang Petrochemical”) is a holding subsidiary of Dongfang Shenghong, and Sierbang Petrochemical is a leading enterprise in the domestic photovoltaic EVA (ethylene vinyl acetate copolymer) industry. After years of research and development, Sierbang Petrochemical has developed multiple brands of photovoltaic grade EVA. The product technology has reached the international advanced level, and the market share of photovoltaic grade EVA is the first in the world. Downstream customers include many leading enterprises in the field of photovoltaic film in China.
For high-tech enterprises, whether they can truly achieve independent control depends to a certain extent on the independent intellectual property rights they own. It is worth mentioning that Dongfang Shenghong attaches importance to independent research and development of advanced technologies during the transformation process. Due to the monopoly of foreign enterprises, the technical barriers to the industrial production of POE (Polyolefin Elastomer) have not yet been completely broken through in China. Dongfang Shenghong said that he was interested in the good application prospect of POE in the field of photovoltaic module packaging adhesive film, and Sierbang Petrochemical has started to carry out research and development with fully independent intellectual property rights.
In the recent research activities, facing the problem of “POE technology source”, Dongfang Shenghong also responded: “The production technology and catalyst for the 800-ton POE pilot plant of the company has been independently developed by the company for more than two years.”
Three “megaton” projects
Miao Hangen, chairman of Dongfang Shenghong, mentioned in the signing speech that “Shenghong Group, relying on the core industrial platforms such as’ big refining and chemical ‘, has been continuously promoting the strategy of new energy and new materials, and the three major’ million ton ‘projects of EVA, acrylonitrile and green degradable materials have been gradually implemented.”
Photovoltaic grade EVA materials are the main raw materials for photovoltaic adhesive films, which are mainly used for packaging photovoltaic modules, playing a bonding role, providing structural support for modules, protecting and improving battery efficiency. The EVA industry in-depth research report of Capital Securities pointed out that “after the small peak of production capacity in 2022, new domestic production capacity will decrease in 2023-2024. With the rapid expansion of the global photovoltaic industry, there will be huge import substitution space, and it is expected that the high EVA boom cycle will continue until 2024.”.
Currently, Sierbang Petrochemical has a capacity of 300000 tons/year of EVA, including 200000 tons of tubular devices and 100000 tons of kettle devices. From the financial report of Dongfang Shenghong, it can be seen that the gross profit margin of the company’s EVA products is relatively high, and in the first half of 2022, the gross profit margin of the company’s EVA products was 42.97%. Dongfang Shenghong stated that it plans to build 700000 tons of EVA and 50000 tons of ENBA high-end polyolefin material projects. The new EVA capacity will be gradually put into production by the end of 2024, and completed and put into production in 2025. After expansion, the EVA capacity of Dongfang Shenghong will reach million tons/year.
Acrylonitrile is widely used in the production of ABS, polyacrylamide, nylon 66, carbon fiber and other products. Shibang Petrochemical’s acrylonitrile products have become the main raw material supplier for many mainstream domestic carbon fiber enterprises. According to China Economic Information Network, “Carbon fiber is an important application scenario for acrylonitrile downstream. From the perspective of carbon fiber policy, China’s carbon fiber development has a relatively short history, started relatively late, and has not yet reached the international level.”. “Therefore, the support of national policies will help accelerate the development of the carbon fiber industry and accelerate the process of domestic substitution.”
According to a research report on China Merchants Securities, “The future development prospects of biodegradable plastics are enormous. According to the prediction data of the European Bioplastic Association, the global annual production capacity of biodegradable plastics will reach 1.334 million tons by 2024, with a compound annual growth rate of 2.7%. According to the prediction of HISMArkit, the global demand for biodegradable plastics is expected to reach 550000 tons by 2023.”
Dongfang Shenghong degradable plastics is in the early stage of the project. Phase I has planned to construct 340000 tons of maleic anhydride, 300000 tons of BDO, and 180000 tons of PBAT, and is planned to be put into production in 2024. Dongfang Shenghong said that there are other degradable plastic products under development and planning, and the capacity scale of degradable plastic in the future will also reach millions of tons.
Practice a green and low-carbon road
In addition to accelerating the pace of solving the “bottleneck” problem in the industry, as a leading private enterprise in the petrochemical industry, Dongfang Shenghong’s responsibility is also reflected in practicing the green and low-carbon road.
In order to “turn carbon into treasure” and create a zero carbon factory, Srpska Petrochemical and Iceland Carbon Cycle International jointly built the world’s first “carbon dioxide capture and utilization – green methanol – new energy materials” industrial chain project. The project recycles carbon dioxide from industrial tail gas into methanol, and through deep processing by integrated upstream and downstream devices, ultimately produces 20000 tons of photovoltaic grade EVA resin, exploring a new green development path of “turning carbon into treasure”.
In addition, Dongfang Shenghong uses new technologies and processes, biomass fibers and recycled materials to lead the industry’s green cycle. Its subsidiaries, Guowang Gaoke and Honggang Petrochemical, were awarded the title of “Green Factory” by the Ministry of Industry and Information Technology of the People’s Republic of China.
It is worth mentioning that the safety and environmental protection investment in the refining and chemical integration project has reached 11 billion yuan, accounting for 16% of the total investment. The amount and proportion of environmental protection investment are at the leading level in the industry, and the environmental protection technology, equipment progressiveness and energy consumption emission indicators are superior to national standards. The project achieves “three wastes” regeneration and recycling through integrated upstream and downstream production of combined units, significantly reducing energy consumption and exhaust emissions, and achieving a reclaimed water reuse rate of 85%; The ethylene plant innovatively adopts a heat pump system composed of a refrigeration compressor and an ethylene tower,
“We will strive to meet the fierce battle and wait for the opportunity to move forward.” The road ahead is long and full of opportunities. What new answers will Dongfang Shenghong give in the future?