In 2023, we focused on professional management, structural adjustment, cost and profitability, and market expansion. We also concentrated on high-quality development, increasing the proportion of high value-added products, and successfully completed all targets.

Improving Professional Management

For process management. Based on the characteristics of chemical production facilities, we developed standardized templates for setting process alarms for 40 types of chemical facilities, and effectively improved process stability.

For equipment management. The Company steadily promoted the construction of equipment integrity management system. We further sorted out the KPIs of the Equipment Sub Committee, conducted special analysis around indicator deviations, key equipment failures of various subsidiaries, equipment accidents, etc., and shared the results.

Optimizing Business Operations, Taping Potential and Increasing Profitability

Established Naphtha Reserve Storage.  We established a domestic reserve capacity of 50,000 cubic meters in Tianjin Petrochemical Company, and a bonded reserve capacity of 430,000 cubic meters in Yangshan, Zhuhai, and Yangpu, connecting the complex process of "collection and storage - bonded tanks - logistics and distribution – subsidiaries" for imported bonded resources.

Flexible Load Adjustment.  We ensured all profitable facilities were fully utilized, with more efforts made on load reduction and operational shutdown for facilities with negative marginal benefit.

Optimization Across Regions.  We carried out optimization calculations in the four regions of Shanghai, Tianjin, Nanjing, and Hunan & Hubei, seized the key points of material supply among subsidiaries, and leveraged deep regional optimization. We optimized the mutual supply of raw materials and product sales based on the profitability and overall contributions of subsidiaries and their facilities, coordinated raw material procurement, product sales, and logistics, and reduced cross regional allocation costs.

New Production Capacity Put Into Operation.  The 1 million-tonne/year ethylene project of Hainan Petrochemical Company and the 600,000-tonne/year caprolactam project of Baling Petrochemical Company were completed and put into operation. The CHPPO plant of Tianjin Petrochemical Company was fully connected throughout the process. The EVA unit of Gulei Petrochemical Company started up smoothly. The 170,000-tonne/year styrene project based thermoplastic elastomer of Hainan Baling Chemical New Material Co., Ltd. was put into operation and achieved product export. The successful operation of the 5000-tonne/year liquid rubber plant of Maoming Petrochemical Company achieved the localization of high-performance liquid rubber for 5G copper clad panels for the first time.

Shutdown Outdated Production Capacity.   The 1 # polyester unit of Shanghai Petrochemical Company, the 1 # PTA unit of Yizheng Chemical Fiber Company, and the PTA and PX units of Luoyang Petrochemical Company were shut down and retired.

Producing More High Value-added Products

We actively promoted technological breakthroughs for 83 high-end products. Qilu Petrochemical Company's 5000-tonne/year special rubber plant, Maoming Petrochemical Company's 1000-tonne/year POE plant, and Zhenhai Refining and Chemical Company's 3000-tonne/year poly 1-butene plant achieved stable operation, with orderly market expansion. Shanghai Petrochemical Company implemented the research and development of carbon fiber large fiber bundles to meet production standards and reduce carbon fiber production costs. The 100-tonne high-strength medium modulus carbon fiber production line was operating stably, with the SCF55 product (T800 level) undergoing customer trials and certification in high-end application fields. Yizheng Chemical Fiber Company accelerated the technological research and industrial scaleup for 4000-tonnes/year of para aramid, developing high-end products such as para aramid for bulletproof helmets, and promoting the construction of high-performance fiber bases.

Coal Chemicals

We adjusted production based on sales and profitability, vigorously promoted the stable and high production of coal mines and chemical plants, adjusted and optimized product structure, reduced costs and expenses, and developed high value-added new products. The production of coal mines and major chemical products reached a historic high, with an increase of 1.7 million tonnes of coal production and a reduction of 147 yuan/tonne in unit production costs of chemical products. For Sinopec Great Wall Energy and Chemical (Ningxia) Co., Ltd., the production capacity of Songxinzhuang coal mine increased by 300,000 tonnes/year. The continuous operation of a single gasifier increased by 9 days, achieving the best operating level of a coal water slurry gasifier under the same load condition. The high-quality vinyl acetate project was successfully put into operation and entered the EVA market. The BDO standard transformation project was put into operation, and the production of BDO and polytetrahydrofuran reached a new historic high. The export of chemical products increased by 42%, achieving operating profits for three consecutive years. For Zhongtian Hechuang Company, its coal mine applied hydraulic fracturing technology for pressure relief mining to alleviate the risk of rockburst. It successfully produced new products such as film material LD160H and injection plastic LD650, and successfully sold weather resistant film products to the Central Asian market, with a total profit ranking among the top chemical companies. For Zhongan United Coal Chemical Co., Ltd., its methanol synthesis unit maintained stable high load operation after changing the catalyst, and the production of methanol and polyolefins continued to reach monthly new highs. It successfully completed industrial trials of biomass co-firing gasification, providing technical support for diversified raw materials.