business

Chemicals Marketing

In 2016, we had an output of 11.0586 million tons ethylene and 4.33 million tons p-xylene respectively, a drop of 59,300 tons and 70,000 tons separately; cost of “ethylene” was dropped by RMB 57/ton; proportion of synthetic resin new products and special resin was 61.4%, a rise of 2 percent point, we replaced 205,000 tons imported resins; differentiation rate of synthetic fiber reached 86.5%, a rise of 4.4 percent point; proportion for high value-added product of synthetic rubber was 20.5%.

Continuous structural adjustment: We carried out raw material structural adjustment in order to maximize input-output efficiency, optimized raw material structure by keeping close to market dynamics, dug and reasonably utilized refinery byproduct gas resources, and arranged the processing of heavy cracking materials, such as diesel and hydrocracking UCO. In terms of product structure adjustment, we aimed to improve the added value of products, insisted on replacing imported products, optimized the division of variety and grade manufacturing among enterprises and workshops, and upgraded level and grade of the three synthetic materials by integrating production- marketing-research. We adjusted equipment structure by focusingon benefits and considering immediate and long-term benefits, and restricted and stopped the production of equipment which had no contribution margin and influences on product chain; meanwhile, we urged enterprises to keep stability of employees, dispose the assets of devices that were no longer used and maintain periodic shutdown equipment.

Intensification of production and operation management: We strictly controlled investment risks and ensured return on investment. ROCE (excluding coal-to-chemicals) in chemical sector reached 14.7%, a rise of 4.1 percent point, reaching the advanced level of major chemical companies worldwide. We strengthened cost objective management to all staffs and strictly controlled the cost from all perspectives; the total cost for chemical products throughout the whole year was RMB 1,308/ton, a drop of RMB 22. We strengthened the connection between production and marketing, continued optimizing production arrangement according to market conditions and benefit, increased the output of products that were well received on market and enjoyed good benefits, and increased market share painstakingly by integrating production and marketing.