Nowadays, the petrochemical integration project base in Daya Bay has become the number one project of national construction, especially this project will involve a huge investment of 7 billion US dollars, and countless manpower and material resources have been mobilized in China, and more than a dozen petrochemical projects and refineries and fertilizer plants that were planned to resume work this year have also been suspended, and all resources and manpower have been concentrated in Daya Bay Petrochemical Base!

Dongxing Petrochemical Co., Ltd. has invested nearly 900 million US dollars in the first phase of the Daya Bay project, and the total investment in the third phase is more than 2 billion US dollars, and the total investment in the three major petrochemical bases in China is as high as 7 billion US dollars.

This investment is also the largest and longest investment project of a foreign-funded enterprise in China so far, and with the start of construction of the project, the media at home and abroad have focused on China!

What the domestic top management attaches more importance to is the positive impact that this investment can bring in the international arena and Hong Kong, Macao and Taiwan, and its far-reaching significance and driving role for foreign investors in domestic development are immeasurable!

Dongxing Group's large-scale foreign exchange investment and China's opening up to it are important areas related to people's livelihood and economy, which shows the determination and courage of the Chinese government to reform and open up, and also shows that China's pace towards the world is accelerating!

With the distance to the Daya Bay Petrochemical Base so close to Hong Kong, with the progress of the project and the acceleration of the construction progress, it has also received widespread attention from Hong Kong and Macao, and even the TW area has also reported.

Formosa Plastics' Wang Yongqing also paid attention to Dongxing Group's petrochemical investment project, and while secretly worried about the future of TW's petrochemical industry, he was also surprised that there was such a strong opponent in East Asia!

In the current period of recession of the petrochemical industry in the TW area, Wang Yongqing, the head of Formosa Plastics, hopes to enter the U.S. market so that Formosa Plastics can truly internationalize the small TW. After he found out the news of Dongxing Group's huge petrochemical investment in the mainland, he immediately found information about this company, as long as the large-scale petrochemical investment persists, it will be a profitable business in the future, and there is no need to worry about product sales and turnover, because this kind of enterprise is a resource-based manufacturer and holds the right to speak in the market. Such an opponent is very likely to become a strong competitor of Formosa Plastics in East Asia in the future!

After Wang Yongqing learned about Dongxing Group and Lin Qiangsheng, he found that the original opponent was not only not simple, but also quite powerful. Previously, a manager in the United States reminded him that there was another Chinese company involved in the U.S. petrochemical industry, and compared with Formosa Plastics' moderation and moderate style, the other was more like a pure American-style company, which treated small and medium-sized petrochemical enterprises that were not doing well and boldly carried out restructuring and mergers and acquisitions to absorb its technological expansion strength, and ruthlessly laid off employees in order to reduce operating costs. Simply cut the business that has no market prospects.

In the past, Wang Yongqing didn't care about this company at all, thinking that he was just an ordinary speculator, but now he doesn't see it that way, looking at its huge investment in the mainland, he is a difficult opponent!

The construction of the Daya Bay Petrochemical Base has also been carefully reported by various media in Hong Kong, and some commentators have analyzed that the opening of this plant has played an immeasurable role in driving the economy of southern China and the whole of China. Many economic experts have also predicted that with the successful completion of the Dongxing Petrochemical Base project, the light industry in South China will usher in a very strong development momentum, and Hong Kong's light industry manufacturing capacity is about to be transferred!

Hong Kong's economy fell rapidly under the double blow of the bursting of the real estate bubble in 82 and 83 and the Sino-British negotiations, and the decline of the real estate industry even exceeded the rational price and fell to the bottom!

At the end of 1982, property prices in Hong Kong were down 60% from 1981. In 1983 the real estate market collapsed. It was not until September 1984, after the signing of the Sino-British Joint Declaration, that the market recovered.

In fact, the Hong Kong stock market ushered in a low-price rebound in the early part of this year, and with the improvement of Hong Kong's economy, many real estate lands that have fallen badly have also ushered in a small wave of upward movement.

Many Hong Kong business owners have already seen that with the deepening of China's reform and opening up, it is bound to attract a large amount of foreign investment, and the mainland is extremely cheap in terms of land and labor, and the monthly wages of Hong Kong workers have exceeded 3,000 yuan, while the monthly wages of mainland workers are less than 100 yuan. In the wake of Hong Kong's economic crisis, many business owners have started to make other plans. It was the opportunity to relocate the production base.

Coupled with the launch of the British government's plan to build a financial Hong Kong, the manufacturing industry in Hong Kong is becoming more and more unsustainable. Rising labour costs and rent costs have forced many of Hong Kong's manufacturing industries to look at the nearby Special Administrative Region. Many Hong Kong people have seen the opening of the project of Dongxing Petrochemical Industrial Base and the analysis and prediction of economic experts on the future, and the capital in the light industry, especially in the field of textile plastics, has secretly begun to act!

Many of them have already considered building factories here, and are waiting for the Daya Bay Dongxing Petrochemical Plant to be completed and put into operation.

Domestically, Dongxing Group's huge foreign exchange investment is also very welcome, and China's foreign exchange reserves exceeded $5 billion for the first time last year, but they are still far from actual demand. At the same time, there is a foreign exchange deficit of tens of billions of dollars. There is a shortage of foreign exchange in China, and the investment of $7 billion has filled China's foreign exchange pocket like a timely rain.

Exxon Petrochemical provided the "heart" of the 300,000-ton ethylene project - the pyrolysis gas compressor, a state-of-the-art high-tech equipment that needs to work in extremely harsh environments, and its tank is made of low-temperature and high-pressure resistant materials, which China is not currently able to manufacture. Both materials and manufacturing technology are difficult, and conventional compressors are also foreign products.

Chief Engineer Shen Hong is personally responsible for the production organization of Chinese enterprises and the construction of the entire project, he has conducted research and organization of equipment production in many petrochemical plants in China, such as Daqing Petroleum General Plant, Lanzhou Chemical Plant, Yanshan Petrochemical, these old enterprises have participated, and the enterprises participating in the manufacturing have PetroChina Petrochemical Corporation and the Petrochemical Department and other units, involving a total of more than 1,000 equipment manufacturing enterprises!

Yang Jun, formerly of Yanshan Petrochemical General Plant, is an expert in chemical technology and technology management in China. As one of the pioneers of the large-scale petrochemical industry in New China, he was also invited to Dongxing Petrochemical Company as a special consultant. He is Hu Jianren, who is also very adaptable to the climatic conditions here in Daya Bay, and the old man is about 60 years old, and is currently the deputy director and director of the State Science and Technology Commission.

Previously, Yang Jun and other leaders of the Science and Technology Commission carried out computer application work, which was the first in China to apply microcomputers, and several of Lin Qiangsheng's computer companies dealt with the State Science and Technology Commission in order to promote microcomputers after entering China. Yang Jun also met Lin Qiangsheng.

But at that time, Lin Qiangsheng didn't know that Yang Lao was a real chemical expert, and he was a rare production organization manager in China. He and Shen Hong cooperate with each other, one outside the main and the other inside complement each other, but after all, the second elder is old and Lin Qiangsheng doesn't want them to work, so he sent a lot of deputies to help them do it.

Yang Jun used to be the leader of Yanshan Petrochemical General Plant, and has been responsible for the technical production and introduction and absorption of petrochemical plants during the period of 71~78. He organized and completed the battle of butadiene rubber and the construction of China's first set of 300,000 tons of ethylene project, which raised China's petrochemical technology to a new level.

Yang Jun focused on the construction of an ethylene plant with an annual output of 300,000 tons, and carried out the construction of the "tetraene" project (ethylene, butadiene, polypropylene, and high-pressure polyethylene) centered on the introduction of an ethylene plant with an annual output of 300,000 tons. Through the joint efforts of more than 30,000 builders, the first phase of the expansion project was completed in only 27 months, becoming a successful example of China's large-scale ethylene plant, so that China's petrochemical technology has taken a powerful step to the world's advanced level.

In 1977, the second year of Yanhua's production, it achieved a total industrial output value of more than 2 billion yuan, and realized profits and taxes of 1 billion yuan!

Regarding the planning of Dongxing Petrochemical Company, Yang Jun proposed in the draft design that the refining capacity should be increased from 6 million tons to 8.5 million tons, and the expansion capacity of the project should be increased to the level of 12 million tons!

The output of gasoline, coal and diesel oil has been increased to the level of 6 million tons of crude oil, and the output of lubricant has doubled compared to the original design. The annual output of chemical products has been expanded from 500,000 tons to 2 million tons. Among them, the three major synthetic materials, plastics, synthetic rubber and synthetic fibers, have been expanded from 300,000 tons to 1.5 million tons.

To this end, atmospheric and vacuum distillation, lubricating oil, and various chemical plants should be redesigned, the design of the original 500,000 tons of light oil cracking and separation device was changed to 900,000 tons, and a set of 900,000 tons of light oil cracking and separation equipment was introduced to manufacture ethylene propylene. The petroleum hydrocarbon cracker is mainly used to produce ethylene, and at the same time co-produce propylene and carbon four fractions, pyrolysis by-products of pyrolysis gasoline, fertilizer raw materials and various additives for industrial equipment oil.

In short, there are many types of products in petrochemical enterprises, and after the completion of large ethylene, there is no worry about making money. That's a super cash cow. It is a popular saying that the ethylene produced by the ethylene factory is not sold to the outside world, because the production capacity is absorbed by the high value-added products manufactured by itself!

Yang Jun also proposed another set of plans to Lin Qiangsheng according to the actual situation in China. This is also more experienced in China, and the domestic construction of a set of 800,000 tons of light diesel cracking and separation equipment to replace the introduction of 900,000 tons of naphtha cracking and separation unit. Yanshan Petrochemical is taking this approach, because China is now in serious short supply of naphtha raw materials that can be processed.

To build a large-scale ethylene plant, the first thing to do is to solve the problem of raw material routes. Foreign crude oil has a high content of light components, and naphtha is mostly used as raw material, while China's crude oil has a high content of recombinant components. The naphtha yield is only 6%-8%, and according to the crude oil processing volume of 2.5 million tons in the seventies, and the production of 1 ton of ethylene from 3 tons of naphtha, the raw materials will definitely not meet the needs of the production of 300,000 tons of ethylene plant. Therefore, at that time, Yang Jun advocated starting from China's national conditions. Light diesel oil is used as raw material to pyrolysis to prepare ethylene.

Yang Jun also made this suggestion to Lin Qiangsheng, the quality of domestic naphtha is not good, the supply is insufficient in the short term, and relying on domestic naphtha production may not be able to support Dongxing's large petrochemical project!

But when this opinion was raised, Lin Qiangsheng quickly rejected Yang Jun's kindness after just a little thought. He knows that in the future, domestic ethylene preparation will mainly rely on naphtha raw material routes, which proves that either domestic technology or the purchase of foreign raw materials supply relationship has been balanced, and Chinese ethylene producers are no longer worried about the supply of raw materials.

With the growth of the national economy and the deepening of China's rural reform, the modernization of agricultural production will inevitably be promoted in the future, and the large use of rural tractors has also increased diesel consumption, and China is a country lacking diesel. If the diesel cracking route is adopted, it will inevitably compete with agriculture for diesel in the future, and the impact on national food security and politics will outweigh the losses, and it will do more harm than good. It is impossible for Lin Qiangsheng to agree to this kind of hated thing, even if he wants to import naphtha after the petrochemical base is built, he will do it.

Moreover, the more mature process of foreign ethylene production technology wood is also based on naphtha, and the ethylene production unit with light diesel oil as the cracking raw material will definitely be eliminated.

In addition, naphtha is also used in many ways, in petroleum refining it is the main raw material for the manufacture of clean gasoline, and in the petrochemical industry it is the raw material for the manufacture of ethylene, aromatics/polyester, synthetic ammonia/fertilizer and hydrogen production. In terms of quantity relationship, naphtha is the largest in the amount of oil, followed by vinyl, and aromatic hydrocarbons are smaller. In this way, for the refining and petrochemical industries, there is great competition in the distribution of naphtha raw materials!

Dongxing Petrochemical Co., Ltd. should enter the field of naphtha production and manufacturing as soon as possible, and at the same time make a large number of strategic reserves to have a certain say in naphtha resources!

After that, Lin Qiangsheng and Yang Jun discussed the issue of agricultural oil, and Yang Laoyi also expressed his understanding when he heard that the light diesel cracker could not be used for agricultural modernization.

In this way, the Dongxing Petrochemical Base in Daya Bay is planned, and the manufacturing of 21 projects such as ethylene propylene rubber, isoprene rubber, formaldehyde, polyester, nylon polyester, acrylic polyester, ethylene glycol, light oil pyrolysis, plexiglass, methyl acrylate and ammonium sulfate is planned, and the total cost of introducing new international environmental protection equipment is 680 million US dollars, and Dongxing Petrochemical successfully signed the final contract with Exxon Petrochemical Company.

Domestic companies have also won nearly $200 million in procurement contracts, and the competent authorities and many petrochemical companies are also very happy. The state has given them the task, and how much foreign exchange can be pulled out of the 7 billion US dollars from foreign investors depends on their ability, and the high-level officials are looking at it from behind, and more than 200 million US dollars is a good start! (To be continued.) )