Maoming's 1 million tons of ethylene highlights the advantages of independent innovation

After two years of operation, Maoming Petrochemical achieved a profit of 4.381 billion yuan, representing nearly 60% of the total investment. The project produced and sold 5.23 million tons of ethylene chemical products, generating hundreds of billions in output value after further processing. As of September this year, China’s first self-innovative ethylene project—Maoming Petrochemical's 1 million-ton ethylene facility—has completed two years of intensive development and has delivered impressive results that have caught the attention of the industry. From October 2006 to August 2008, the project produced 1.8865 million tons of ethylene over the past two years, resulting in 5.23 million tons of various ethylene-based chemical products. Sales revenue reached 46 billion yuan, with the company capturing 60% of the market share in South China's chemical industry. After processing, the output value exceeded 100 billion yuan, with a profit of 4.381 billion yuan—nearly 60% of the total investment—and an annual return on investment exceeding 20%. The project also contributed more than 3 billion yuan in taxes, supporting both national and local fiscal growth. Additionally, it met environmental standards, achieving "three simultaneous" compliance for waste discharge and resource recycling, earning recognition as a national environmentally friendly enterprise. With significant economic, social, and environmental benefits, Maoming Petrochemical’s 1 million-ton ethylene project highlights four key advantages of independent innovation: First, technological innovation. The project invested 1.56 billion yuan, which ranks first in China, and was the first to use Sinopec’s independently developed technology. The equipment localization rate reached 84.84%, with 83.07% of the total equipment cost coming from domestic suppliers. The largest 300,000-ton polypropylene plant adopted an improved localized second-generation ring pipe process, achieving full localization of major equipment. Other facilities, such as the 640,000-ton/year gasoline hydrogenation unit and the 460,000-ton/year aromatic hydrocarbon pump, also utilized core technologies developed by Sinopec. This marked the largest ethylene project in China to incorporate the most independent innovation technologies, breaking the historical reliance on imported technology. After nearly two years of effort, the project successfully mastered its own innovative technologies, achieving standard production for key units like the 300,000-ton polypropylene plant and the 600,000-ton cracking gas compressor, ensuring long-term smooth operations and creating substantial business value. Second, low-cost expansion. By adopting independent innovation technologies and utilizing locally manufactured equipment, along with existing infrastructure and public utilities, the project significantly reduced costs. The total investment came in 343 million yuan below the original budget, and local tax incentives helped cut expenses. Adding one million tons of new ethylene capacity cost just 11,800 yuan per ton, compared to the national average of 147,700 yuan per ton. This represented a 16% cost reduction, setting a new domestic record for ethylene investment and improving the project's return on investment. Third, production and management cost savings. The use of domestic solutions and localized components allowed for efficient cost control. The project implemented the "three agents" localization strategy, reducing procurement costs by 99.74 million yuan annually. With over 500 million yuan saved in production costs, the project became one of the most cost-efficient in China's petrochemical system. Fourth, optimization of refining and chemical integration. By applying independent innovation technologies, Maoming Petrochemical advanced the strategy of "large refineries and large ethylene," enhancing the mutual utilization of oil and ethylene materials. This improved resource efficiency and economic performance. For example, converting aromatics raffinate from ethylene into finished oil increased annual efficiency by 50 million yuan. Meanwhile, integrated fuel and gas supply between refining and ethylene reduced emissions and costs by 40 million yuan. Over the past two years, water consumption per ton of ethylene dropped by 50%, energy consumption decreased by 5%, and key economic and technical indicators entered the industry's top tier.

Business Card

Yutian Jifu Paper Products Co., Ltd. , https://www.yutianjifu.com