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China's domestic key equipment sets of ethylene still need to use external force (1)
**Business Opportunities: The Next 15 Years Still Represent the Peak of Construction**
In 2005, China’s ethylene production capacity stood at 9 million tons per year. According to forecasts from relevant departments, by 2010, domestic demand for ethylene was expected to reach 25–26 million tons annually, while production capacity would only rise to 14 million tons, barely meeting the demand. By 2020, demand is projected to soar to 37–41 million tons, with production capacity reaching 23 million tons per year—still only covering about 60% of domestic needs. To meet this growing demand, China is expected to add 7–8 ethylene units of 800,000 to 1 million tons per year by 2010, and approximately 9 such units by 2020.
Several large-scale ethylene projects have already been approved and are under construction. For example, Zhejiang Zhenhai Petrochemical’s 1 million-ton-per-year ethylene plant, with a total investment of 23.3 billion yuan, was completed in 2009. Fujian Quanzhou’s 800,000-ton-per-year project, costing 26.6 billion yuan, was finished in 2008. Tianjin Petrochemical’s 1 million-ton-per-year unit, with an investment of 20.1 billion yuan, was also completed in 2008. Sichuan Chengdu’s 800,000-ton-per-year project, backed by 21 billion yuan, was completed in 2010. Meanwhile, Lanzhou’s 600,000-ton-per-year ethylene renovation project, with an investment of 6.3 billion yuan, was completed in 2006. Several other projects, including Guangzhou, Fushun, Xinjiang Dushanzi, and Wuhan, are still in the pipeline.
According to Wang Tingjun, a single large-scale ethylene plant with a capacity of one million tons requires over 20 billion yuan in total investment. Based on historical data, equipment costs account for around 30% of the total investment, meaning that each major project could require up to 7 billion yuan in equipment. During the “Eleventh Five-Year Plan†period, China is expected to see about 56 billion yuan in demand for ethylene equipment. This number is projected to rise to 63 billion yuan during the “Twelfth Five-Year Plan.â€
**Domestic Situation: Six Key Equipment Challenges**
The first critical piece of equipment is the ethylene cracking furnace. Previously, these were imported from abroad. However, Chinese manufacturers have made significant progress, developing furnaces with capacities of 20,000, 40,000, 60,000, and even 100,000 tons per year. Now, efforts are underway to develop 150,000–200,000-ton-per-year units to meet the demands of new large-scale ethylene plants.
The second key equipment is the gas compressor, particularly the “three machines†— cracked gas compressors, propylene compressors, and ethylene compressors. These are considered the heart of the ethylene process and are technically complex and expensive. While China has developed the technology for 800,000–1 million-ton units, further R&D is needed in areas like thermodynamic equations, software development, and control systems.
The third major component is the ethylene cold box, which uses plate-fin heat exchangers. Domestic companies, such as Hangzhou Oxygen Making Machine Factory, have made significant strides, achieving international standards. They have produced multiple cold boxes for major petrochemical plants, ending the reliance on imports. The next challenge is to develop high-pressure cold boxes for more advanced processes.
The fourth key equipment is the polymerization reactor, used in polyethylene and polypropylene plants. Although some reactors are now domestically produced, tower-type gas-phase reactors are still not fully mastered. China has successfully designed and manufactured gas-phase reactors for use in ethylene projects, but tubular reactors remain a challenge.
The fifth key equipment is the extrusion granulator, essential for post-processing. While China has partnered with foreign firms to produce smaller units, larger ones capable of handling over 50 tons per hour are still difficult to manufacture independently. These units are currently imported, with high costs involved.
Finally, the sixth critical system is the DCS (Distributed Control System), which manages the control loops in large-scale ethylene plants. Currently, most DCS systems are imported, with brands like Yokogawa and Honeywell dominating the market. Although some domestic efforts have been made, full industrialization and independent development are still ongoing.
With continued investment and technological advancement, China is well-positioned to meet the rising demand for ethylene and related equipment in the coming years.