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Production &
Operation of
Chemical
Business

We produced 12.06 million tonnes of ethylene, 4.94 million tonnes of PX, 17.69 million tonnes of synthetic resin, 1.39 million tonnes of synthetic rubber, 6.13 million tonnes of raw materials for synthetic fiber, 3.2 million tonnes of synthetic fibers, 1.32 million tonnes of synthetic fibers polymers, and 500,000 tonnes of fine chemicals. Among them, the output of synthetic resin and synthetic rubber achieved growth.

Strengthening Structural Adjustments

Based on the adjustments in feedstock, we followed the principle of “self production as the key, external procurement as a complement, and import as an adjustment”, coordinated and dovetailed two markets and two types of resources, and secured the supply of ethylene feedstock. In terms of product structural adjustment, we developed and produced more high-performance new products, breaking new ground. The commercialization of our products was successful. We expanded market share and gained profits in fostering new products such as medical care units. We developed new technologies in producing melt-blown fiber, and built 10,000-tonne production capacity in Yanshan Petrochemical Company and Yizheng Chemical Fiber Company within 76 days, playing a crucial role in fighting against COVID-19. We timely developed new medical and health protection materials and introduced them to the market. New progress was made in the technical research of new fine chemical materials, and mass production and sales were realized. In terms of facility structure adjustment, we actively responded to market changes and measured the performance of product chain and facilities, rationally arranged facility and product plans, and strived to optimize product structure and capacity.

Tapping into the Potential of Operation

We stringently controlled various costs, formulated key points and goals of cost management, focused on key costs such as auxiliary materials for fuel, repairs, external processing, and laboratory tests, measurement, and inspections, conducted comparative analysis from multiple angles, tightly managed and controlled over-budgeted expenditures, and continued to facilitate overall cost target management. We strictly managed the funding plan, optimized the allocation of funds, minimized the net capital employment, and reduced the cost of capital use. We implemented 1,305 projects to raise efficiency throughout the year, established a working mechanism of “daily following up, weekly notification, and monthly review”, strengthened supervision on operation, and ensured that various measures were carried out.

Maintaining Stable Supply Chain for Production and Sales

We dovetailed production and sales, dynamically adjusted the capacity utilization rate based on market changes, and made arrangements for product flow. To solve the insufficient storage capacity of production companies, we actively rented storage resources from the private sector, urgently allocated shared pallets to improve storage capacity, increased the turnover of transfer warehouses with concentrated product consumption and strong loading and unloading capabilities, and spared no effort in clearing the obstacles for related companies. We solved the transportation of products in multiple ways, learnt about the commission and main demands of downstream sector customers in a timely manner, assisted customers in solving practical difficulties, and facilitated them to resume work and production.

Continuously Improving Operations in Coal to Chemical Industry

2 coal mines of Great Wall Energy & Chemical Company (Ningxia) carried out trial production and resumed production in accordance with the law and regulations. The operating cycle and capacity of chemical plants increased significantly, and the integration of coal, electricity, and chemical industry basically took shape. The coal mines of ZTHC Company kept stable and high volume production. The first turnaround for chemical facilities successfully completed. The output of major products set a new record, and techno-economic indicators climbed by a large margin. The coal mines of Zhonganlianhe Coal-chemical Company reached production capacity, and the chemical facilities there achieved stable operation and sustained profitability despite the overbearing design since they were commercialized for the first year. After comparison, selection, and demonstration, the 600,000 tonnes/year coal-to-polyolefin project of Guizhou Energy and Chemical Company was altered and optimized to a 500,000 tonnes/year coal-to-PGA project, and the first draft of its feasibility study was completed. The coal chemical projects put into operation produced 22.21 million tonnes of raw coal and sold 18.66 million tonnes of commercial coal throughout the year, an increase of 4.7% and 3.9% respectively. The output of major chemical products was 3.62 million tonnes, and the total operating volume was 2.98 million tonnes, an increase of 12% and 11% respectively.

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