Sino-Stone Cooperation Promotes Localization of Major Equipment to Meet Energy Structure Adjustment
2025-10-03 07:04:09
The China Petroleum and Petrochemical Equipment Industry Association (commonly known as the China Stone Association) recently held its working conference and sixth member congress in Beijing. During the event, Wang Jiming, former president of Sinopec Corp., was elected as the chairman of the sixth council. The association, which was reorganized and renamed the China Shipbuilding Association, has now prioritized the localization of major petrochemical technology and equipment as a key focus for future initiatives.
According to Zhao Zhiming, the executive vice chairman of the association, the China Stone Association was founded in 1985. Initially, it aimed to break down barriers between departments, industries, regions, and ownership structures. However, for many years, it remained closely tied to government functions. After the 2002 election, the association began reforms aligned with international standards. Leaders from major companies such as PetroChina, Sinopec, and CNOOC have taken turns serving as chairmen. Today, the association includes 160 governing units and 867 member organizations.
Currently, the association is focusing on the localization of key petrochemical technology and equipment, a goal directly linked to the State Council's recent "Opinions on Accelerating the Rejuvenation of the Equipment Manufacturing Industry." This policy outlines three main requirements for the oil and petrochemical equipment sector: promoting localization through large-scale projects, introducing and adapting foreign technologies for independent development, and achieving domestic production of million-ton ethylene equipment. It also emphasizes developing offshore oil engineering equipment, large transport vessels, floating production tanks, and LNG carriers, as well as coal chemical equipment to meet national energy needs.
Zhao emphasized that innovation and R&D are essential for successful localization. He cited Sinopec’s experience over the past two decades, highlighting four key lessons: first, strong leadership and organizational coordination are crucial, with top leaders taking full responsibility. Second, strict management and procedural discipline must be maintained, with dedicated offices overseeing localizations. Third, the principle of seeking truth from facts should guide decision-making, balancing risk and breakthroughs. Fourth, collaboration among researchers, designers, manufacturers, and users is vital.
Zhao urged the industry to adopt a global perspective, noting that China's current petrochemical projects are at their peak, offering a rare opportunity for localization. However, this also means tight deadlines and high stakes. Failure to meet these challenges could jeopardize project implementation. He called for increased awareness and investment in R&D, as many companies remain unaware of the technological gaps compared to global competitors. The industry is currently caught in a cycle of low-price competition, harming product quality and overall development.
Investment in R&D remains insufficient, and intellectual property disputes with foreign countries are increasing. Zhao urged the industry to boost R&D spending, not only in equipment but also in advanced technology and information systems. Without cutting-edge technology, there can be no world-class equipment. Additionally, under globalization, tracking and absorbing foreign advancements in technology, management, and patents is essential for industry growth.
Finally, Zhao stressed the need for supportive policies. While company efforts are important, they must be backed by effective policy frameworks. Under the planned economy, financial and resource management was rigid and impractical in today’s market-driven environment. There is a need for innovation in management systems. Furthermore, past policies were often vague and lacked coherence, and future reforms should address these shortcomings to ensure sustainable development.
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