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Shenyang Chemical's largest domestic acrylic plant to drive successfully

In the factory area of Shenyang Petrochemical Group Paraffin Chemical Co., Ltd., located near the Shenyang-Dalian Highway, a single acrylic monomer unit with a maximum capacity of over 300,000 cubic meters has drawn global attention under the bright autumn sun. It resembles a silver dragon lying on the ground, gleaming in the sunlight. At noon, in the central control room adjacent to the acrylic facility, as the commander gave the order, the first tank of propylene raw material was injected into the system. The "Silver Dragon," long prepared for operation, immediately came to life. Within a few hours, the first batch of acrylic product was officially released. After testing, its acid purity reached an impressive 99.7%, far exceeding national standards. "One successful investment drives development!" The control room erupted in thunderous applause. Shen Hua employees have every reason to be proud of this achievement. This 130,000-ton-per-year acrylic acid production line represents world-class scale and technology. Once fully operational, it is expected to generate RMB 2.3 billion in new sales revenue for Shenyang Chemical Group. Next year, the entire Shenhua Group is projected to surpass 7 billion yuan in revenue. More importantly, this project has fundamentally transformed the company’s product structure, moving it from merely selling upstream raw materials to developing high-value downstream products. It marks another turning point in Shenhua's growth journey. "It is reform that has brought Shenhua to where it is today," said Wang Dazhuang, chairman of Shenhua Group, before the official launch of the acrylic plant. Following strategic restructuring with China Bluestar Group Corporation, the company clarified its development direction and strategy. Before the reform, the company had its own plans but lacked funding and technical resources. Even with good ideas, implementation was difficult. Reform broke through these barriers, enabling rapid progress. In the chemical industry, where projects drive development, Shenhua has made significant breakthroughs. In less than two years, the group successfully launched six major projects, investing over 400 million yuan of its own funds. Alongside the acrylic acid project, a newly built 40,000-ton/year propylene oxide and polyether project is already producing, generating over 600 million yuan in annual sales and becoming the third-largest facility in the country. Meanwhile, the PVC paste resin project, after transformation, now has an annual capacity of 100,000 tons, making it Asia’s largest producer. Overall group sales doubled post-restructuring. From a small refinery with a narrow product range, Shenhua has rapidly evolved into a "new star" in the chemical industry, driven by large-scale projects and high-tech innovation. Reform has set the stage for explosive growth. Like a growing chemical giant, Shenhua’s vision extends beyond just the acrylic project. Its ambitious plan includes the CPP (Catalytic Thermal Cracking and Ethylene Production) project, which could reshape China’s and even the world’s chemical industry. The site for the CPP project is just a few hundred meters away from the acrylic plant. “The process and engineering design are in full progress. Some key equipment has already been ordered. The basic and detailed designs have been commissioned to the most authoritative agencies in the country,” said Liu Weidong, assistant general manager of the Chemical Group. CPP technology is a leading domestic innovation for olefins production. Its main advantage lies in economic efficiency—using heavy residue oil instead of expensive crude oil as feedstock. It is more affordable and widely available, while also increasing production capacity by nearly 20% compared to traditional methods. This groundbreaking process fills a gap in the international market. Shenhua invested 3.6 billion yuan in a 500,000-ton CPP project, the first of its kind in China. It is a national demonstration project included in the "Eleventh Five-Year Plan." Expected to be completed by 2008, the project will add 5 billion yuan in revenue to Shenhua. Once operational, it will play a vital role in expanding ethylene raw material sources and developing petrochemical products across China. As a Chinese chemical expert remarked: “Projects like acrylic acid and CPP reflect both Shenhua’s technical and economic strength.” These two promising projects act as powerful engines, propelling Shenhua toward becoming a major chemical enterprise with over 10 billion yuan in annual sales. With a clear strategic direction, Shenhua is confident and bold in planning for the future. In the next phase, the company will expand PVC paste resin production to 200,000 tons annually, solidifying its position as Asia’s top producer. Additionally, the new 1,200-acre site in the west of Wuxi Chemical Co., Ltd. has become a new base for the group. After the CPP project goes online in 2008, it will lead to a series of follow-up processing projects. When fully integrated, Shenhua will achieve seamless connections between petrochemicals, chlor-alkali chemicals, and fine chemicals, showcasing an even more impressive "big chemical" vision.

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