Sinopec is currently conducting a post-evaluation of key projects that successfully met the goals of the "Ninth Five-Year Plan" and "Tenth Five-Year Plan," aiming to document best practices, address existing challenges, and further advance the localization of critical equipment. This effort is part of a broader strategy to enhance domestic manufacturing capabilities and reduce reliance on foreign suppliers.
Since the National Development and Reform Commission's Major Technical Equipment Coordination Office held a national conference on petrochemical equipment localization in Shenyang in April this year, Sinopec has accelerated its efforts to localize large-scale ethylene production equipment. In early May, the company's major equipment localization leadership group reviewed progress on key projects such as ethylene cracker compressors, propylene refrigeration compressors, large extrusion granulation units, and high-nickel alloy tubing. The goal is to integrate domestically developed equipment into the overall project plan.
Recently, Sinopec has also finalized several localization initiatives, including projects for million-ton ethylene cracker compressors, propylene refrigeration compressors, ethylene cold boxes, labyrinth seal compressors, and more. These efforts involve thorough investigations, continuous tracking, and active coordination to ensure smooth implementation.
According to Zhang Jianhua, Sinopec’s Senior Vice President, supporting domestic production of major equipment has not only boosted the technological level of local manufacturers but also brought tangible benefits to Sinopec itself. First, it has significantly improved the company’s equipment support capabilities. With global shortages of specialized equipment, especially for large-scale units like ethylene “three machines†and hydrogen compressors, Sinopec faced severe supply pressures. Foreign manufacturers often couldn't meet domestic demand due to full production schedules. Between 2003 and 2007, prices for such equipment nearly doubled. By supporting the development of a circulating hydrogen compressor by Shenchuang, Sinopec eased supply constraints. Compared to imported alternatives, the locally produced unit offered lower costs and faster delivery—reducing lead time by four months and ensuring timely project completion.
Second, procurement costs have dropped significantly. After Sinopec and Yizhong Group jointly developed a forging-welded hydrogenation reactor, Sinopec purchased over 60 units from a heavy machinery group, saving approximately 550 million yuan in procurement expenses.
Third, Sinopec has gained stronger bargaining power with foreign companies. Before the successful localization of large-scale air separation plants, foreign firms dominated the market, often setting high prices and long delivery times with little room for negotiation. After domestic development, foreign suppliers had to lower their prices to remain competitive.
Currently, Sinopec is preparing the "Eleventh Five-Year Plan for Major Equipment Localization Development," and the first draft has already been completed. This strategic initiative reflects the company’s commitment to building a more self-reliant and technologically advanced petrochemical industry.
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