Rongsheng Petrochemical invests 19.6 billion yuan to upgrade the Zhejiang Petrochemical integrated base

On the evening of July 16, Rongsheng Petrochemical (002493) announced that its controlling subsidiary, Zhejiang Petroleum & Chemical Co., Ltd., will implement a renovation and upgrade project for its integrated refining and chemical complex, with a total investment of approximately 19.6 billion yuan. The overall construction period is 2 years.

I. Construction and Expansion of Multiple Core Units with Clear and Considerable Profitability Projections

This technical transformation utilizes the products from Zhejiang Petrochemical's existing units as raw materials, plans multiple key chemical units, and simultaneously implements capacity expansion and upgrades for some existing production lines. The main new constructions include the 5# Continuous Catalytic Reforming Unit, 3# Reforming Hydrogen Concentration Unit, 3# Rich Hydrogen Concentration Unit, 3# C1/C2 Separation Unit, and 1# C10 Separation Unit.

According to the project feasibility study report, after the project is fully completed and put into operation, the annual net profit is expected to increase by 1.40955 billion yuan. The project's after-tax financial internal rate of return reaches 11.08%, and the after-tax investment payback period is 8.93 years (including the 2-year construction period), indicating that the project's economic benefits are reliably secured.

II. Leveraging 40 Million Tons of Crude Oil Capacity to Optimize Resource Utilization via Molecular Processing

Rongsheng Petrochemical explained the core logic behind this investment, stating that this renovation is a key measure to drive the transformation and upgrading of Zhejiang Petrochemical's product structure. The project fully integrates Zhejiang Petrochemical's existing 40 million tons/year crude oil processing resources, implements molecular processing and refined management models, and realizes a flexible and precise processing route of "aromatics when suitable, olefins when suitable, chemicals when suitable," exploring a new path for maximizing the efficient utilization of crude oil resources.

The project focuses on the industry transformation主线 of "reducing fuel oil and increasing chemicals." Through the optimization of the unit structure, it increases the output ratio of chemical raw materials such as aromatics and ethylene, extends the downstream high-end new materials industry chain, increases the proportion of high value-added products, and continuously strengthens the comprehensive competitive advantage of the integrated base.