An Analysis of Dushanzi Petrochemical’s Initiative to Build a World-Class, Specialized, Leading Demonstration Enterprise

In the first quarter of 2023, Dushanzi Petrochemical Company produced 514,800 tons of ethylene and processed 2.03 million tons of crude oil—increases of 230,000 tons and 6,900 tons, respectively, compared to the same period last year.

For a long time, Dushanzi Petrochemical has closely monitored market demand, actively secured resources, and continuously optimized production operations and the coordination between production and sales. By increasing the output of high-efficiency, market-ready products, the company has maintained a steady and positive trend in its production and business operations.

Building on past achievements and embarking on a new journey, the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council held a mobilization meeting on March 31 regarding the initiative for state-owned enterprises to become world-class, specialized, leading demonstration enterprises. Dushanzi Petrochemical was the only refining and chemical enterprise under PetroChina to be selected for this list. This represents both a remarkable achievement and a significant responsibility; the company is forging ahead with determination toward the goal of becoming a leader domestically and a top-tier player globally.

Deepen Product R&D and Accelerate the Building of a World-Class Enterprise

The report to the 20th National Congress of the Communist Party of China calls for improving the modern enterprise system with Chinese characteristics, fostering an entrepreneurial spirit, and accelerating the development of world-class enterprises.

Faced with the reality of being located in a border region far from mainstream markets, Dushanzi Petrochemical Company maintains a clear vision: "Strive for the best, compete for the top spot, and build a world-class enterprise." The company is committed to pursuing long-term goals with passion and steadfastly executing its strategic blueprint.

Dushanzi Petrochemical has thoroughly implemented the decisions and plans of the CPC Central Committee and the State Council, adhering to the principles of "specialized excellence, innovation-driven growth, lean management, and distinctive characteristics" while advancing demonstration initiatives. The company actively develops platforms for technological innovation and focuses on the R&D and production of high-end polyolefin resins and rubber products. It has established four series of distinctive, high-advantage products: solution-polymerized styrene-butadiene rubber (SSBR), pipe materials, blow-molding materials, and metallocene polyolefins.

Since early April, Dushanzi Petrochemical has successfully produced new metallocene polyethylene shrink film (EZP4002HH) and specialized bimodal polyethylene pipe material for nuclear power applications. Metallocene materials offer excellent tensile properties and transparency, and the company has won market acclaim through the strength of its new product development. As the first domestic chemical enterprise to achieve stable, large-scale, and diversified production of specialized metallocene polyethylene materials, the company has broken the monopoly previously held by imported products in this sector.

Uphold Innovation-Led Development and Go All Out to Grow the New Materials Business

Innovation is the soul and most distinctive feature of "specialized, refined, distinctive, and innovative" enterprises. Mindful of its mission to serve the nation through science and technology, Dushanzi Petrochemical Company has continuously ramped up R&D efforts and gone all out to drive the development of its new materials business.

From the establishment of five provincial and ministerial-level R&D platforms—including the Group's synthetic rubber pilot test base and the polyethylene pipe processing technology center—to the inclusion of its TUB121N3000B gas pipe resin in the International PE100+ Association’s list of quality products, a series of achievements marks Dushanzi Petrochemical’s solid progress in pioneering innovation.

Solution-polymerized styrene-butadiene rubber (SSBR) is a critical material for manufacturing high-performance tires; its mass production helps overcome the shortage of essential materials that has hindered the upgrading of the domestic tire industry.

Dushanzi Petrochemical has consistently increased its investment in technology, building China's first SSBR pilot plant and establishing a full-process R&D capability to maintain a leading position in the domestic SSBR sector. The company spearheaded the formulation of the national standard for SSBR, successfully passed national acceptance checks for key industrialization technologies regarding high-performance synthetic rubber, and saw its SSBR products recognized by industry associations as innovative new chemical materials.

After more than a decade of dedicated effort—focused on mastering world-class technology and operating world-scale facilities—Dushanzi Petrochemical ranked first nationwide in SSBR production in 2022. Its eco-friendly SSBR products, such as grades 2557S and 2564S, meet EU standards and command a 52% share of the domestic market, holding a dominant position among domestically produced materials and helping my country transform from a major rubber producer into a global rubber powerhouse.

Focusing on Management Enhancement and Advancing Full-Chain Production Optimization

Benchmarking, setting standards, and striving to surpass them constitute the methodology for establishing a world-class demonstration enterprise characterized by specialization, refinement, uniqueness, and innovation.

Dushanzi Petrochemical Company rigorously benchmarks itself against international leaders, the best in the domestic industry, and the top performers within its corporate system. Focusing on the principles of "four refinements" and "three excellences," the company continuously optimizes its management systems. It has defined objectives and management improvement measures across nine areas—including strategy, organizational support, and operational system backing—while strengthening lean management and deepening internal reforms.

Lean management ensures the smooth progress of the initiative to build a world-class demonstration enterprise. The company fosters a mindset of lean operations and excellence, establishing an integrated control system that links performance indicators with production and operations—prioritizing synergy across production, storage, and sales, as well as cost-price-profit analysis, to optimize the entire production chain.

Adhering to the principles of "aiming for the best, continuous benchmarking, and surpassing leaders," the company has refined its "three-level benchmarking and dynamic standard-raising" indicator system. It implements a philosophy of meeting design standards, improving upon historical performance, striving for excellence within its business segment, leading the industry, and achieving world-class status through international benchmarking. The company has been recognized as an energy efficiency "frontrunner" in the ethylene industry for 11 consecutive years. In 2022, four key indicators—fuel/power consumption and water consumption for its 1.1-million-ton/year ethylene unit, and comprehensive energy consumption and water consumption for its 450,000-ton/year synthetic ammonia unit—ranked at the forefront of the industry.

Embracing heavy responsibilities demonstrates the commitment of a central state-owned enterprise. Standing at the new starting point of building a world-class demonstration enterprise that leads in its specialized field, Dushanzi Petrochemical Company remains mindful of General Secretary Xi Jinping’s vital instruction to serve as a "pillar" of energy supply security. It is steadfast in acting as a highly reliable backbone force for the Party and the nation, striving to make new contributions to Chinese-style modernization.