“Northern Element Model” Helps Superior Enterprises Stand Out

With resources such as coal and rock salt, the Shanxi-Shaan-Ning-Meng high energy-carrying industrial circle has experienced vigorous development in the past 67 years. In particular, in recent years, Hubei Yihua Chemical Co., Ltd. has acquired Inner Mongolia Haiji Chlor-alkali Co., Ltd., Shanghai. Heavy Industry Co., Ltd. entered the Wuhai chlor-alkali company in Inner Mongolia, heating the local chlor-alkali industry. However, as enterprises continue to refresh their production records, they also encountered difficulties in the development of homogeneity and logistics.
On November 10th, Shaanxi Beiyuan Chemical Group Co., Ltd. rolled off the first phase of a 1 million-ton per year PVC complex recycling project. At the end of 2011, after the completion of the project, the annual PVC output of the company will reach 1.1 million tons and the annual revenue will exceed 10 billion yuan. Although the PVC industry is currently highly competitive, Wang Fengjun, general manager of the company, believes that the Beiyuan brand products will stand out and occupy a larger market share. He said that this kind of emboldenedness is because they have created a "Northern model" in which state-owned enterprises and private enterprises complement each other and organically combine their advantages.
In an interview with reporters, the local government and relevant industry professionals all have a positive attitude toward the “Northern Element Model”. The "North Element Model" began in 2007 with the two capital increase of North Chemicals. The first time was the joint cooperation between Beiyuan Chemical and 10 private enterprises in Yulin, which increased the share capital of the company from 70 million yuan to 1 billion yuan, achieving the strong combination of private enterprises; the second time was cooperation with Shaanxi Coal Chemical Group. , Signed the “Agreement on Increasing Capital and Expanding Shares of Shaanxi Beiyuan Chemical Co., Ltd. to Establish a Large-scale PVC Production Base”, and the company’s share capital increased from 1 billion yuan to 1.68 billion yuan. Two times of capital increase and expansion of stocks have enabled Beiyuan to build a 1 million-ton/year PVC project with a material foundation, and also created a precedent for local private enterprises and large state-owned enterprises to jointly build coal and salt chemical projects. With the advantages of large-scale state-owned enterprises, Beiyuan Chemical successfully achieved the approval of various procedures for the expansion project and successfully obtained a loan of 5 billion yuan.
Wang Fengjun believes that there are currently only four PVC companies that have invested hundreds of billions of yuan and have a capacity of 600,000 tons/year or so in the surrounding area of ​​Wuhai, Inner Mongolia. Future competition will depend on the improvement of the industrial chain and the operating conditions of the circular economy.
"Although from a scale point of view, we are not the largest in the country, but it is the fastest construction." Wang Fengjun said that relying on the increasingly mature "North Elementary model", they are full of confidence in the country's largest PVC project built in the future.
The combination of strong and powerful state-owned enterprises and large state-owned enterprises brought sufficient funds and ensured high-tech and high-level project construction. Through the use of Italy's Woodinola Ion Membrane Electrolytic Cell, Japan's Chiso Polymerization Technology, Swiss Bot's Evaporation Unit, Korea's Samsung Air Compressor, etc., the project can achieve international advanced level in process technology, devices, and product quality. It can solve the problem of homogeneity of domestic products and produce a variety of high-quality resins that meet the needs of the market.
Shaanxi Coal Chemical Industry Group established five industry-level 2 enterprises in Northern Shaanxi to enable Beiyuan Chemical to supply raw materials to the deep processing of chlor-alkali products, forming an industrial park for recycling and comprehensive utilization, which maximizes the cost of the project. Scale, resources and technology have several major advantages.
In the past, the company’s 100,000-ton/year PVC project did not have self-contained salt, coal resources, electricity, and steam energy, and there was no self-contained calcium carbide sludge residue converted to a cement project, so the advantage was not obvious. The 1 million-ton/year PVC project is a comprehensive recycling project, supporting 800,000 tons of caustic soda, 2.4 million tons of cement per year, and 4×60 megawatts of back-draft thermal power units and supporting salt projects. The project's self-recovery brine technology adopts recycled water-using salt, calcium carbide slag produced by PVC and fly ash produced by thermoelectricity are used to produce cement, and thermoelectricity supplies electric power and steam for each installation area, and realizes material recycling between each other.
Now, if the company purchases calcium carbide from the surrounding calcium carbide enterprises, the purchase cost will be 500 yuan less per ton than the eastern coast, and the annual cost can be reduced by 750 million yuan; if Shaanxi Coal Industry Group is used in northern Shaanxi to provide direct-priced, affordable calcium carbide for Beiyuan, The cost savings are even more pronounced. The total cost of self-produced power generation is currently 0.25 yuan/kWh, while power consumption of similar manufacturers is about 0.5 yuan/kWh, saving 750 million yuan in electricity costs. According to the calculation of self-built salt mines, the cost of raw salt is less than 100 yuan per ton, and the annual cost savings can reach 300 million yuan. The use of waste residue to produce cement costs less than 100 yuan per ton. Based on the current market price of 300 yuan per ton, the annual cost can be reduced by 480 million yuan. Only a few of these items can save costs of 2.28 billion yuan each year.
At the same time, Shaanxi Coal Chemical Industry Group incorporated Beiyuan Chemicals into the group's mature large logistics system and solved the logistics problem of 1.1 million tons of PVC products.
Wang Fengjun said that with the accelerating pace of integration of the chlor-alkali industry, those enterprises that lack resources, low technological content, small scale, and large pollution will gradually lose their competitiveness due to environmental protection and cost pressures. Some have the advantages of location, resources, scale, and recycling economy. Businesses will stand out. This is exactly where the value of the "North Element Model" lies.

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