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Petrochemical's performance in the first quarter of the chemical sector

In the first quarter of this year, Dalian Petrochemical Company achieved a record high in the production of chemical products. The total volume of goods completed reached 81.963 million tons, an increase of 1.5226 million tons compared to the same period last year. This represents 128.57% of the planned progress. Specifically, 81.254 million tons of polypropylene were produced, marking a rise of 1.5052 million tons year-on-year. EPS (expandable polystyrene) output reached 709 tons, up by 174 tons from the previous year. Additionally, 2,496 tons of hexane were produced, and the company generated a profit of 56.68 million yuan, reflecting strong performance. To ensure smooth operations and avoid unplanned shutdowns, Dalian Petrochemical actively followed the Group’s “Anti-violence Six Bans” guidelines. Employees were encouraged to identify potential hazards, and inspections and maintenance of critical equipment were intensified. In response to issues with the EPS units, technical teams worked proactively to address challenges such as low production load, high costs, product pre-foaming, agglomeration, and inconsistent product sizes. New temporary processes were also introduced to handle emerging issues related to alkyl aluminum de-oiling in polypropylene plants. By using propylene-promoting additives, the liquefied gas yields from three catalytic units significantly improved. Meanwhile, the three gas fractionation units optimized their operations to overcome inefficiencies in cold exchange and maximize propylene production. In total, the company produced 72.28 million tons of propylene in the first quarter, while an additional 8,885 tons were obtained through outsourcing and mutual supply, ensuring a stable raw material supply. The two polypropylene units operated under heavy load, striving to reduce energy consumption. Due to delays in commissioning the new two 2,000-millimeter propylene spheres, material balance became challenging. To address this, the company coordinated the operation of three catalytic units, gas fractionation systems, and the two polypropylene units to maintain flexibility and process as much as possible. Production fluctuations were minimized, and polypropylene brand switching was reduced. As part of the China Petrochemical and Sales Company's compliance initiatives, Dalian Petrochemical also implemented energy-saving production measures. After the anti-freezing period, steam and electric tracing systems were shut down, reducing steam and electricity usage. The company also started using domestically produced main catalysts instead of imported ones, which is expected to cut annual costs by over 10 million yuan. Optimizing the production process and product structure helped maximize profits. As a specialized chemical group, Dalian Petrochemical leveraged upstream and downstream material relations and product characteristics to coordinate production planning and scheduling. Key devices were monitored closely, and all systems were kept in optimal operating conditions. In the first quarter, the EPS unit produced 708.59 tons of EPS, achieving a yield of 86% for three intermediate products—surpassing the historical high by 12%. In February, due to rare ice and snow disasters in southern regions that disrupted land transportation, Dalian Petrochemical ramped up production of polypropylene T36F grade, increasing output from 5,000 tons to 9,000 tons. The actual output reached 9,210.325 tons, demonstrating the company’s commitment to market stability. Last year, Dalian Petrochemical’s chemical segment produced 206,850 tons of polypropylene, an increase of 9.2448 million tons year-on-year, with nearly 240 million yuan in profits. This year, building on this success, the company will continue to leverage its chemical sector advantages to achieve further improvements in key performance indicators. According to the schedule, two polypropylene units and the EPS unit will undergo major overhauls at the end of April, laying a solid foundation for future production expansion.

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