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The National Development and Reform Commission drafted the â€œImplementation Plan for Further Promoting the Localization of Large-scale Petrochemical Equipmentâ€ (discussion draft), stating that during the â€œ11th Five-Year Planâ€ period, the localization goal of petrochemical equipment should reach 75%. The current draft is widely soliciting opinions from large petrochemical state-owned enterprises such as PetroChina and Sinopec.
According to the relevant person in the oil industry, according to the national petrochemical industry invests more than 300 billion yuan each year, equipment investment generally accounts for about 30% of the total project investment, then in the future the total demand for equipment in the national petrochemical industry will reach 100 billion yuan. For home-made petrochemical equipment manufacturers, it means a market space of at least 75 billion yuan a year.
The plan stipulates that when chemical companies apply for new projects, they must submit a list of equipment, among which domestic equipment that is already capable of being domestically produced and has been promoted, will be banned from importing; if it has localization capabilities but has not yet been promoted and applied, the government will pass taxation. Policy restrictions on imports.
The proposed banned import equipment includes: 800,000 to 2 million tons of hydrocracking reactors, 700,000 tons of cracked gas compressors, and 300,000 tons of propylene compressors. The 1 million tons of cracked gas compressors and propylene compressors, 600,000 tons of PTA air compressors and other equipment are listed as restricted imports.
Domestic leading companies that manufacture these equipment include Great Rubber (600346), Shenyang Blower (Group) Co., Ltd., Jingcheng Environmental Protection Industry Development Company, and Lanzhou High Pressure Valve Co., Ltd.
Experts involved in the formulation of the plan believe that the current design and manufacturing capabilities of China's petrochemical equipment industry have reached a considerable scale and technological level. Most petrochemical equipment can be designed and manufactured on their own, and some of the equipment has reached the international advanced level, which has largely changed China's petrochemical equipment has long relied on imports, and there is no need for repeated introduction.
At present, the localization rate of China's oil refining equipment has reached more than 90%; the localization rate of 300,000 tons of ethylene equipment has reached more than 80%; and some PTA equipment has also been domestically produced. The research and development of the one million-ton ethylene core equipment also achieved breakthroughs and began to be applied.
The plan clearly calls for the major projects of the three major oil companies to be used to promote the localization of major technology and equipment. At present, PetroChinaâ€™s ongoing construction projects include Fushun Petrochemical's annual 1 million-ton ethylene project, Sichuan's 800,000-ton ethylene project, and Daqing Petrochemical's annual 600,000-ton ethylene renovation and expansion project.
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