According to news from the press conference held by the Shandong Provincial Government Information Office last week, with the clearing of outdated production capacity and the improvement of traditional kinetic energy, Shandong, an industrial province, passed the most difficult period of the epidemic and entered a normal development track. The province's industrial added value has been increasing for four consecutive months since March, and the chemical output value has also ended the sharp decline since last year. In the first half of this year, the added value of the province's chemical raw materials and chemical products manufacturing industry increased by 1.5% year-on-year.
It is understood that since 2017, Shandong Province has vigorously promoted the transformation and upgrading of safe production in the chemical industry, reduced coal consumption, eliminated outdated production capacity, re-identified chemical parks, and shut down and transferred "scattered and polluted" enterprises. Affected by this and the decline in product prices, the province's above-scale chemical enterprises completed 1.88 trillion yuan in main operating income in 2019, a 46% year-on-year decline.
But Shandong Province has not stopped the pace of kinetic energy conversion. According to Guan Zhaoquan, deputy director of the Provincial Development and Reform Commission, in the first half of this year, the province’s industrial enterprises above designated size reduced coal consumption by 26.351 million tons and coking capacity by 13.96 million tons. Coal consumption by industrial enterprises above designated size decreased by 12.9% year-on-year. All chemical production companies and 171 hazardous chemical storage companies have all suspended production and operations.
At the same time, the province vigorously cultivates high-end chemical industry. Among them, a large number of high-end chemical projects with large investment, strong driving ability and good market prospects, such as Wanhua Chemical Polyurethane Industry Chain Integrated Ethylene Project, Weilian Chemical’s 2 million tons of para-xylene project, Tianchen Qixiang Nylon New Material Project, etc. Start construction. As of the first half of this year, there have been 340 adjusted high-end chemical "four batches" warehousing projects, of which more than half of the projects have started construction and some have been completed and put into production.
This year is the year when Shandong Province’s new and old kinetic energy conversion "has achieved results at the beginning of three years", and there have been some new changes in various industries that stabilized and improved. In the first half of the year, the chemical industry's product prices rebounded significantly. Shandong's refining and chemical industry has basically digested the high-priced crude oil in the early stage, and the benefits of the industry have generally rebounded. The operating rate of the province's refining and chemical enterprises and the primary crude oil processing production load are both around 90%.
