The Shandong Huaxing Petrochemical (Group) Co had after-tax revenues of 10.01 billion yuan by August, an increase of 66.5 percent year-on-year. This makes it the second enterprise within the ChemChina Petrochemical system to have sales exceeding 10 billion yuan. It also ranks among the top few subsidiaries of China National Chemical, in profits.
In July of last year, Huaxing Petrochemical put six new facilities into operation to increase production capacity and improve the product mix. They include a 6-million-ton/yr pretreatment facility for crude oil, a 1.6-million-ton delayed coking device, 1.4-million-ton hydrogen refining unit for gasoline and diesel, a 20,000-cubic-meter/hr hydrogen-making device, 1-million-ton catalytic gasoline hydrogen, and a 50,000-ton sulfur recycling and emission gas treatment.
The new facilities helped improve the quality of the company’s lead products, such as 93-octane gas and hydrogen diesel by bringing them up to category III and IV in the national standards. These products have wide recognition in the market and the improved facilities, technology and products will help the company hit its yearly production targets.
In view of the fairly grim market situation this year, Huaxing Petrochemical looked for new ways to increase sales and launched a sales competition among its marketing teams. This resulted in an increased share in the South China and East China markets. At the same time, the company was able to pick up the pace of developing marketing and sales channels in the Northwest.
Huaxing Petrochemical also set up an ERP system, built several customer databases, and began applying a classified management system. It also adjusted its ex-factory prices to make them more flexible and keep them In line with fuel price fluctuations, and it was able to offer some discounts. In addition, it adopted a “one-stop” service system to cut the time needed for product delivery, to increase sales.
The purchasing, marketing, production, finance, accounting and other related departments at Huaxing Petrochemical all did their part, becoming more coordinated and cooperating in adjusting production plans. And, with this concerted effort, Huaxing Petrochemical was able to sell 1.53 million tons of goods in the January-to-July period, an increase of 76.7 percent year-on-year.