China Chemical Engineering unswervingly promotes the high-quality leap-forward development of the company. Just now, China National Chemical issued an announcement: the cumulative value of newly signed contracts from January to November was 235.142 billion yuan, a year-on-year increase of 6.72%. Among them, the domestic contract value was 195.873 billion yuan, a year-on-year increase of 12.37%. The overseas contract value was 39.269 billion yuan; the accumulated operating income was 120.659 billion yuan, a year-on-year increase of 26.41%.

Overseas business increased in November

The overall growth of China's chemical industry is relatively rapid. In particular, domestic business reached 12.37%; in November, compared with previous months, overseas business had a clear growth trend. Of the 23.938 billion newly signed projects in November, 14.504 billion came from overseas. Although there was an increase in foreign countries in November, on the whole, foreign countries are still very pessimistic, with a decrease compared with the same period last year. This is largely related to the ferocity of the epidemic abroad. Today, the virus has undergone new mutations, and I don’t know how it will affect performance in the future.

We have no control over the epidemic, but we can make appropriate adjustments to business decisions. From the perspective of China's chemical business strategy, China's chemical has focused its efforts on the domestic market, thereby offsetting the impact of the reduction in foreign countries. At the same time, it did not give up overseas business. Therefore, you can see that China Chemical achieved a year-on-year growth of 6.72 from January to November, which is indeed very difficult.

More than 500 million projects reached 109.5 billion

According to statistics, in January-November 2021, Sinochem has obtained about 80 major projects with a single contract value of more than 500 million yuan, with a cumulative contract value of 109.5 billion yuan.

From the perspective of the regional distribution of orders (calculated in amount), they are mainly concentrated in Guangdong, Hebei, Shaanxi, Jiangsu, Hubei, Henan, Guangxi, Tibet, Shandong, Chongqing, Shanxi, Sichuan, Anhui, Tianjin, etc. (below). Among them, Guangdong, Hebei, Shaanxi, Jiangsu, and Hubei are the provinces where China Chemical has key operations and orders.

In addition, by comparing previous large projects, it can be found that China Chemical's emphasis on large projects is constantly increasing. And this trend has also been fully reflected in overseas projects. As discussed in our previous article, the cost of operating a project is similar, so the higher the amount, the more profitable it will be. Of course, the construction of large-scale and large-scale projects will help enhance the strength of China's chemical investment, construction, and operation integration.

Ten billion large single received in the bag

As you can see, China National Chemical Engineering Seventh Construction Co., Ltd., a wholly-owned subsidiary of China National Chemical Corporation, has won the alumina refinery project for Mavcard Bauxite Mine in Guinea of Mavcard UK Co., Ltd. The amount is approximately 1.8 billion euros (equivalent to approximately RMB 11.5 billion yuan). This project is located in Tugue and Kubia districts of Labe Province, Guinea. It mainly develops and builds an alumina refinery with an annual output of 1.5-2 million tons for the Mavcard bauxite project in Labe Province, the Republic of Guinea. Those who read our article should remember that earlier, China Chemical Seventh Construction Co., Ltd. signed a contract for the EPC of the Guinea Mavcard bauxite mine supporting railway project of approximately 7.675 billion yuan. From here, we can see the comprehensive hard power of Sinochem Seventh Construction.

Of course, this tens of billions of dollars has increased the morale of overseas business, and also fully demonstrated China's determination and perseverance to fight overseas.

Good news of key overseas projects spread frequently

In addition to the tens of billions of large orders mentioned above, China Chemical won some iconic large orders overseas in the second half of the year:

In July 2021, China National Chemical Corporation No. 3 successfully won the bid for the general contracting project of Saudi Aramco's gas separation plant and supporting facilities, with a contract value of approximately RMB 450 million. Since the project received the bid invitation in August 2020, the overseas business department of Sinochem's third company has actively organized the bidding work to overcome the impact of the epidemic and maintain close communication with customers. After several rounds of fierce competition, it finally beat the group and received the award notice in June of this year. The winning of the project has laid a solid foundation for the third Sinochem Company to further stabilize the Saudi market and present a congratulatory gift to the centennial of the party.

In August 2021, China National Chemical and Beijing Fortune Dingheng Investment Co., Ltd. held the EPC contract signing ceremony for the first phase of the Congo (Brazzaville) Pointe-Noire Refinery Project at the headquarters of the group company. The project includes the construction of an oil refinery with an annual output of 3 million tons and supporting public auxiliary and off-site facilities. After the project is completed, it will become the largest refining and chemical project in Congo (Brazzaville). The signing of the project is a concrete manifestation of the implementation of China's chemical "one body and two wings" overseas development strategy and further development of the African market.

On August 17, 2021, China National Chemical Corporation VII received the bid-winning letter for the hydrocracking unit project of Gazprom Moscow Refinery. The contract amount is about 20.3 billion rubles (including VAT), which is equivalent to about 1.8 billion yuan. The construction period is 34 months. The seventh company is mainly responsible for the construction of the hydrocracking unit (HCU), hydrogen production unit (HPU) and torch of this project. The project is located in Moscow, the capital region of Russia. It is the first time for the Seven Company to enter the political and economic center of Russia. Another breakthrough after the layout is of great significance for promoting the rapid growth of the Russian market.

The fifth branch of China Chemical Engineering 13th Construction Co., Ltd. successfully won the bid of Chengda Company-Inner Mongolia Huaheng Energy Technology Co., Ltd. PTMEG and PBAT new material industry chain integration project installation package A, and the bid amount was 118.7 million yuan. The project is a new large-scale chemical project, including 800,000 tons/year acetylene raw material device, 120,000 tons/year acetylene generating device, 3×104,000 tons/year BDO device, 4×46,000 tons/year PTMEG, 60,000 tons/year Annual PBAT, 28000Nm/h natural gas hydrogen production plant, 3x240,000 tons/year formaldehyde plant and supporting public works and auxiliary facilities. This project is the largest device of the same type currently under construction in China. The project has improved the layout of the owner's industrial chain, and at the same time responds to the country's call for vigorously developing biodegradable plastics, which is of great significance to my country's environmental protection.

China National Chemical Engineering Seventh Construction Co., Ltd. signed a contract for the hydrocracking unit project of the Moscow refinery. The project is located in Moscow, the capital of Russia. It is the first time that China Chemical Engineering Seventh Construction Co., Ltd. has entered the political and economic center of Russia. Another breakthrough after the overall layout of the Skovsky Krai and Western Leningrad Oblast is of great significance for accelerating the network and rapid growth of the Russian market.

Although the overseas road is difficult, China Chemical is still persevering and working hard step by step. There are many projects, so I won’t list them one by one here.

Won a number of honors

A few days ago, the 2021 list of AAA-level credit enterprises in the construction industry was officially announced. Five companies, including the Second Company, Fourth Company, Seventh Company, Fourteenth Company, and Communications Construction Company, under China Chemical, were rated as AAA-rated credit enterprises. Among them, the 4th company and the 7th company have been awarded the rating 5 times in total, the 2nd company and the 14th company have been awarded the rating 4 times, and the CCCC was awarded this rating for the first time. And these are the accumulation of bits and pieces of hard power of Chinese chemistry.

Build a world-class engineering company

China National Chemical is one of the industrial engineering companies with the most complete qualifications, the most complete functions, and the most complete business chain in the field of chemical industrial engineering in my country. Through the provision of full-process and all-round services, we will finally deliver modern factories with advanced technology, complex processes and huge investments. Through continuous innovation and refined management, we will actively promote full-process services, industrial operations, and capital operations in multiple engineering fields to achieve Simultaneous growth of scale and benefits.

I’ve talked to you before that China Chemical has long been insisting on innovation-driven development, cultivating and attracting talents of all kinds. Relying on its design institutes, it has built an open innovation platform of "1 Headquarters + Multiple Branches + N Platform", which is oriented towards global marketization. Select and hire high-end R&D personnel. Accelerate the transformation of scientific and technological achievements, create a "source of origin" for original technologies in the chemical industry, and implement the "four 15%" positive incentive mechanism such as 15% of industrial profits for the transformation of scientific and technological achievements to reward R&D teams. This is still very worthy of promotion and reference in the construction of state-owned enterprises.

With the help of a strong team of talents and scientific research capabilities, China Chemical has accelerated technological innovation and achievement transformation in the fields of new materials, clean energy, and green environmental protection. It has achieved a number of "stuck neck" technological breakthroughs, and at the same time strives to build an ecological civilization. Play a bigger role.

In the field of industrial new energy, Wuhuan Company, a subsidiary of China National Chemical Corporation, has carried out technical exploration and project implementation of hydrogen production and hydrogen storage and transportation. In 2020, it signed an EPC contract for Yidu 10000t/a oil storage project with Hyyang Energy Holding Co., Ltd.; In the field of new materials, ChemChina has developed and mastered core technologies in the field of new chemical materials such as caprolactam, adiponitrile, and aerogel, and has reached the international advanced level. It has strong project execution capabilities in the design and construction of large-scale petrochemical and new coal chemical projects and other chemical engineering fields, firmly occupying a leading position in the domestic market, and having strong competitiveness in the international engineering market. At the same time, relevant diversified businesses are carried out in the fields of construction engineering and environmental governance such as municipal engineering, power engineering, transportation, park planning and construction. The goal is to become a world-class engineering company.

Come on, China Chemical, sprinting for the last month, looking forward to your big explosion! Editor/Sang Xiaomei