Despite stiff market competition and profit margin challenges, FREP still managed to gain good profit margin from the first half of the year, and has been gaining profit consecutively in May, June and July through market-oriented production, and leveraging the synergy and strengths of refining and petrochemical integration, and focusing on optimization/improvement and value management.

     “The first step to stop losing and start gaining is to properly manage the operation of existing units, and fully revitalize the stock assets”, said Mr. Lu Dong, FREP Chairman & President.

    The company’s production BTs made efforts to focus on flawless operation and profit improvement, strength field management, optimize production organization, revitalize the potential capacity of units, reduce consumption of energy and raw material, and improve the level of fine management and plant operating performance.

      “Without spending even one penny of investment, we utilized the key gross margin variables, carried out indicator competition, and relied on the employees’ optimized adjustment and fine operation to achieve more than RMB13 million profits in 4 months”, said Fuels-1 BT manager Tang Liyan, today, optimized adjustment has become a spontaneous action of employees.

    FREP fully utilized processing means of the existing refining and petrochemical integration, optimized the production process routes according to the principles of “aromatics for aromatics, olefins for olefins, oils for oils”, increased the crude oil and various in-house resources from the “fraction” level to the “molecule” level, so as to realize maximized utilization of resources and maximized profit margin.

     “Through modeling and technical analysis, we are able to select the most economical ethylene feed, and carried out narrow fraction management for ethylene feed, which has achieved significant profit gain”, said DGM of the Technical & Planning Dept. Lin Xu.

     FREP also focused on the reduction of energy consumption cost, and further optimized the energy structure, so as to increase the energy efficiency. They utilized polyethylene super-condensation technology, controlled the volume of outsourced natural gas, established the technical and economic indicator management system, and incorporated nitrogen usage into the energy management scope, increased the thermal efficiency of the heating furnaces, which have all achieved significant performance.

This article was published as headline news in SINOPEC Newspaper on August 20, 2014