The Influence of Differential Industrial Policy on Petrochemical Industry in Xinjiang

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In order to further support and guide the healthy development of Xinjiang's industries, the National Development and Reform Commission recently issued the "Several Opinions on Supporting the Healthy Development of Industries in Xinjiang," and proposed a differentiated industrial policy, focusing on supporting the development of 12 industries of the Xinjiang Production and Construction Corps and 6 industries. The project approval authority is delegated to the Xinjiang Uygur Autonomous Region and the Corps Development and Reform Commission. The "Opinions" also proposed that guidance and support be increased in many aspects such as planning guidance, major project arrangements, and fund allocation.

These 12 key industries are steel, electrolytic aluminum, cement, polysilicon, petrochemicals, coal, coal chemical, thermal power, renewable energy, automobiles, equipment, and light industrial textiles. The decentralized industries for the six project approval rights are steel, cement and chemical (PTA, polyester, etc.), coal, coal chemical (demonstration projects), and renewable energy. It can be seen that a large part of these industries are strictly controlled projects in other regions, and Xinjiang has enjoyed special “care” because of its unique resources, environment, and industrial infrastructure.

The "Opinions" put forward: "The state supports the local processing of crude oil produced in Xinjiang and uses the imported crude oil to appropriately expand the crude oil processing capacity." Shi Huizhong, deputy director of the Petrochemical Industry Industry Management Office in Xinjiang Autonomous Region, believes that this strong support policy can be compared. In a short period of time, Xinjiang's crude oil processing and petrochemical industry will develop rapidly, and the pull of local economy will be very obvious.

According to a set of data provided by him, in 2011, Xinjiang produced 26.23 million tons of crude oil, 10.88 million tons of crude oil was imported through China-Kazakhstan crude oil pipelines, 27.5 million tons of crude oil processing capacity of several major oil refineries, and nearly 10 million tons of crude oil came out of Xinjiang. Relying on abundant oil and gas resources, Xinjiang is building a national energy processing base and the goal is to reach 48 million tons of crude oil processing capacity by 2015. Since the implementation of the new round of aid for Xinjiang, the oil and gas processing capacity in Xinjiang increased by 9% last year.

With regard to the development of coal and coal chemical industries, the Opinions proposes that “a large modern coal mine be built, the exploration and development of coalbed methane resources should be accelerated, and the comprehensive utilization of coalbed methane resources must be promoted; the coal deep processing demonstration focusing on coal-based natural gas should be promoted to optimize the thermal power structure”. This policy has a clear catalytic effect on the development of modern coal chemical industry in Xinjiang. The predicted reserves of coal resources in Xinjiang reached 2.19 trillion tons, accounting for 40% of the country's forecasted reserves. It is understood that the Xinjiang Uygur Autonomous Region Party Committee and the government have supported coal as another pillar industry following oil, and actively promoted the conversion of coal resources by converting coal to oil, coal to gas, coal to olefins, coal to dimethyl ether, and coal. The coal deep processing projects such as ethylene glycol are taken as the commanding heights for the development of the modern coal chemical industry. It is proposed that by 2015, the major new coal chemical products will have a production target of 60 billion cubic meters of coal-to-natural gas, 3.6 million tons of coal, and coal. 1 million tons of olefins, 1 million tons of coal-based ethylene glycol, and 800,000 tons of dimethyl ether from coal.

The market for coal-based natural gas and coal deep-processing products is huge. In a resource-rich region such as Xinjiang, which is far from the interior of the country, the conversion of coal into pits is realized, and then the terminal products are transported to the consumer market by pipelines and other means, which can both stimulate the economic development of Xinjiang. National economic construction also plays a significant role in promoting. Li Yongwu, president of the China Petrochemical Federation, pointed out during his inspection tour of Xinjiang last year that the “12th Five-Year Plan” period will be a time when Xinjiang’s coal chemical industry will shine. The country has introduced a differentiated industrial policy for coal and coal chemical industry, and the coal chemical industry in Xinjiang is even more powerful.

Xinjiang has good lighting conditions and rich photovoltaic resources. It is a “fengshui treasureland” for the development of solar photovoltaic industry. The "Opinions" proposes to speed up the construction of polysilicon projects that the country has already approved, and then make overall plans for new construction projects based on market demand. As the polysilicon industry upstream of the solar photovoltaic industry chain, the previous stage was affected by the shrinking global market demand, resulting in excess capacity and a dismal market. Therefore, the current state of the polysilicon industry in terms of scale is generally limited, the polysilicon industry to expand and expand, new projects must be approved by the National Development and Reform Commission.

It is under such a background that, taking into account Xinjiang's advantages in resource transformation, the country still supports Xinjiang in accelerating the construction of approved polysilicon projects, and then co-ordinates new construction projects according to market demand, which will accelerate the development and application of the solar photovoltaic industry in Xinjiang. It is of great significance to realize the comprehensive recycling of resources and promote the adjustment of energy structure. At present, the polysilicon industry in Xinjiang has begun to take shape. Special transformers and Xinjiang Silicon Industry Co., Ltd. and Daquan Group's Shihezi polysilicon project have laid the foundation for the polysilicon industry. The country has further introduced differentiated industrial policies and the development prospects of the polysilicon industry in Xinjiang are bright.

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