According to the prediction of China Chemical Equipment Association, with the sustained and rapid growth of China's petroleum and chemical industry during the "Eleventh Five-Year Plan" period, China's chemical machinery industry will embrace a new development period in the coming years.
At present, under the favorable situation of continuous increasing investment in the petroleum and chemical industry, to adapt to the new changes in demand from industries such as petroleum and chemical, China's chemical machinery industry is quietly carrying out a new round of strategic transformation from quantitative expansion to qualitative improvement. Experts from China Petroleum and Petrochemical Equipment Industry Association recently pointed out that China's chemical machinery industry has long been on the edge of losses, and the massive import of modern large-scale petrochemical equipment is one of the main reasons for the low economic benefits of this industry. However, in 2004, China's chemical machinery industry ushered in a booming market with both strong production and sales, turning around the whole industry's loss situation in one move. The main reasons are as follows: first, the strong demand for petroleum and chemical equipment at home and abroad; second, technological progress has improved the economic benefits of the whole industry; third, progress has been made in industrial restructuring and enterprise restructuring.
According to the 2004-2005 annual report on China's chemical machinery market research, from the perspective of demand structure, at present, petrochemical machinery, plastic machinery and other products still have great demand potential. It can be said that after going through all kinds of hardships, the chemical machinery industry will maintain a stable growth in economic benefits, is expected to end the long-term loss situation and start to transform to sound development.
Industry experts analyzed that since last year, with the soaring international crude oil price, refineries have set off an upsurge in constructing or renovating petroleum hydrogenation units to improve the yield of light oil in the refining process. It is reported that at present, there are more than 100 hydrogenation units in China, and 45 hydrogenation units were under construction or newly built from the second half of 2004 to the first half of 2005. The sudden expansion in demand for domestic hydrogenation units has led to a situation where products are in short supply for equipment manufacturing enterprises. In 2004, many chemical machinery manufacturing enterprises received a large number of orders that had not been seen for many years, and their product sales increased sharply, with another 30% increase in the first half of this year. Obviously, the petrochemical industry has provided strong support for the development of the chemical machinery industry.
 > While demand is growing strongly and economic benefits are improving, China's petroleum and chemical machinery and equipment industry has also made great achievements in independent research and development in recent years, and cultivated certain market competitiveness. For example, the 3.5 million tons/year heavy oil fluid catalytic cracking unit designed and manufactured by China successfully passed the trial run with one feeding at Dalian Petrochemical, marking that China now has catalytic cracking complete technology with independent intellectual property rights, and possesses the strength in engineering design, production and construction of world-famous large-scale catalytic cracking units; the ethylene cold box designed and manufactured by Hangzhou Oxygen Generator Factory has been successfully put into operation in Yanshan Petrochemical's 710,000 tons/year ethylene unit, realizing the localization of large-scale ethylene cold boxes and reaching the international advanced level; the successful development of the 10,000 cubic meter natural gas spherical tank, a national major technical equipment localization innovation project undertaken by Hefei General Machinery Research Institute, has filled the domestic gap. Not long ago, Sui Yongbin, director of the National Major Equipment Office, together with leaders and experts from the domestic equipment manufacturing industry, conducted an on-site inspection on "Hometown of Chinese Pumps and Valves"——Yongjia County, Zhejiang Province, and spoke highly of its positioning the development of pump and valve equipment manufacturing in the petroleum and chemical industry, and committing to the R&D and production of high-temperature, high-pressure, high-parameter large pumps and valves with large market demand. In response to this, a person in charge of Sinopec Ningbo Engineering Company expressed the hope that domestic chemical machinery manufacturing enterprises will adjust their product structure as soon as possible according to demand, improve technological content, and meet the needs of advanced, large-scale and complex projects.
In the long run, the domestic chemical machinery market will maintain a relatively optimistic development trend in the next few years. Some experts analyze that in the next five years, oil refining and ethylene will become the leader and core of the petrochemical industry, and China's chemical machinery industry will present seven major development trends: products with traditional brand advantages will still obtain a high market share, such as major equipment like high-pressure vessels used in large-scale synthetic ammonia and urea plants; equipment required for energy-saving technical transformation and product structure adjustment of petrochemical enterprises will have greater development space; energy-saving unit equipment will have a broad market; the development and innovation of environmental protection equipment will become a new growth point for chemical equipment; the large-scale development of petrochemical units will drive the upsizing of equipment; export products and import substitution products have great potential, for example, tire curing presses in rubber equipment have a good prospect for export, and main equipment for radial tires have obvious price advantages in import substitution; petroleum and chemical product storage and transportation equipment will occupy a specific market share.