The facility’s refining capacity now exceeds 50 million tons annually.

NINGBO, China, Dec. 26, 2024 — Sinopec (HKG: 0386) has announced the completion of its Zhenhai Refinery’s second-phase expansion and advanced materials project. This achievement showcases advancements in innovation, smart manufacturing, and energy efficiency in large-scale projects. The refinery’s capacity is now 40 million tons per year, contributing to the Zhejiang Ningbo Petrochemical Industrial Base exceeding a total refining capacity of 50 million tons annually. This establishes it as China’s leading, most technologically advanced, and globally competitive petrochemical industrial base.

Situated in the Yangtze River Delta, a major downstream product consumption center, the Zhejiang Ningbo Petrochemical Industrial Base is a key part of Sinopec’s operations. The second-phase expansion, a CNY 41.6 billion investment, features 18 production units, including atmospheric distillation, catalytic cracking, polypropylene, and propane dehydrogenation units. The project’s chemical-focused approach generates numerous high-value supply chains.

This expanded production supports the creation of high-end polyolefins, advanced materials, and specialty chemicals. It’s projected to yield approximately 8 million tons of petrochemical products yearly, substantially increasing the supply capacity for sectors like automotive, home appliances, and textiles in the region. This is expected to generate trillions of yuan in overall industrial value.

The project demonstrated significant strides in technological innovation and sustainability, including:

• The localization of 10 key technologies, including a world-leading vertical labyrinth compressor.
• Widespread use of smart technologies, creating integrated digital and physical factories.
• Adoption of a fully localized industrial operating system and a proprietary industrial internet platform for improved decision-making.
• Comprehensive energy efficiency measures, resulting in an 11.7% overall energy consumption reduction.
• A strong focus on safety and quality, resulting in over 90 million consecutive safe man-hours and a 100% quality pass rate for all units – setting a new industry standard.

Zhenhai Refinery, Sinopec’s largest integrated refining and chemical facility, has an ethylene production capacity of 2.2 million tons annually. It’s also the only Chinese company consistently ranked among the top performers in Solomon’s Global Ethylene Performance Evaluation.

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