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Reporter: After the completion of the reorganization of the association, what changes have taken place in the organization and member units?
Zhao Zhiming: China Stone Association was established in 1985. At the beginning of its establishment, it broke the barriers of departments, industries, regions, and ownership. However, for a long time, it was characterized by a government-run association with a planned economy. In 2002, the association carried out reforms in accordance with international practice. The top executives of PetroChina, Sinopec, and CNOOC in turn took the position of chairman. The chairman of the fifth board of directors was served by Zheng Hu, deputy general manager of CNPC. After this change, the former president of Sinopec Corp. Wang Jiming was elected as the chairman of the sixth board of directors. At present, China Stone Association has a total of 160 governing units, more than 700 member units, an increase of more than 300 over the previous session.
Reporter: Under the circumstance that the domesticization of major petrochemical technology equipment such as one million tons of ethylene and one million tons of PTA has become an important part of the current revitalization of the equipment manufacturing industry in China, what are your views and suggestions on how to implement localization? What are the next steps? Plans and arrangements?
Zhao Zhiming: We have already determined the localization of major petrochemical technology and equipment as an important task for the association in the future. Sinopec has always attached great importance to the localization of major equipment, and the results achieved are also very rewarding. Since the "Eighth Five-Year Plan," a total of more than 2,000 sets of equipment have been tackled domestically, saving investment costs of more than 5 billion yuan. Recently, senior leaders of Sinopec also specially invited more than 10 experts to listen to the work report of the localization office of major equipment of Sinopec, and studied the working ideas and goals for the next step. In the next stage, Sinopec will tackle the development of new equipment after large-scale installations, develop 10 million tons of refinery equipment, and strive to achieve the localization rate of 10 million tons of oil refining equipment to 95%; second, to conduct 1 million tons of ethylene and The development of its associated equipment and equipment plans to rely on Tianjin and Zhenhai ethylene projects to achieve breakthroughs in the domestic production of major equipment such as ethylene triples, cold boxes, quenching boilers, polyethylene and polypropylene reactors, as well as localization of already operational ethylene. Equipment to strengthen long-term follow-up monitoring, analysis and improvement, and regular comprehensive evaluation, a good overall effect in the new project resolutely promote the use of the third; million tons PTA device key equipment oxidation reactor, hydrotreating reactor and other research and development .
Looking at the experiences and lessons of Sinopec's more than 20 years of major equipment localization, we can learn a few experiences: First, the leaders attach importance to, strengthen organization and coordination, dare to take board, and dare to take risks and responsibilities. Senior leaders of Sinopec personally took the lead in the leading group of major equipment localization, and repeatedly stated that "we must resolve to die, to do meticulous work, and each link must be seriously implemented. As long as it is serious, the Chinese have nothing to do. Of course, the importance and efforts of localization and equipment manufacturing companies are equally important; followed by the implementation of organizational structures and strict management procedures. In 1983, Sinopec set up a localization office for major equipment, organized the feasibility study for localized projects every year, insisted on independent development with domestic research and development capabilities and conditions, and firmly prohibited the import of equipment with good application performance; Seek truth from facts, diversify risks, and focus on breakthroughs. We do not blindly move forward and do not follow the old rules. We do not emphasize 100% localization. We can gradually achieve breakthroughs in projects that do not have certainty through the integration of technology and trade and Chinese and foreign cooperation. Fourth, we must adhere to the joint research of scientific research, design, manufacturing, and users. .
In short, for the domesticization of major petrochemical technology and equipment, the three major companies and domestic equipment manufacturing companies should be examined at a global level. At present, the investment and construction of China's petrochemical projects is at its peak. This is a rare opportunity for localization, and it also means that the time for localization is urgent. Failure to do a good job will result in the failure to implement the project.
Reporter: In your opinion, what are the core competitiveness of the petroleum and petrochemical equipment manufacturing industry and enterprises? How can companies improve their independent innovation and original innovation capabilities?
Zhao Zhiming: I think this core competitiveness is mainly reflected in three aspects: First, independent intellectual property rights and technological innovation. Innovation and R&D need investment. At present, the R&D expenses of domestic equipment manufacturing enterprises account for only 2% to 3% of the operating revenue, while the developed countries have generally reached 5% to 10%. The second is the management level of the company. Enterprise management is a manifestation of overall competitiveness. In a completely open market, the level of management is often of great importance. Third is talent. We should vigorously upgrade the overall quality of employees in the equipment manufacturing industry, break the monopoly of monopoly and distribution, and establish a long-term mechanism for attracting and retaining talent.
To enhance the ability of independent innovation, enterprises must first raise their awareness. At present, many of our companies are not aware of the gap between themselves and foreign countries. They only realize that fierce competition in the industry has fallen into the vicious circle of sacrificing product quality with low-price competition and bad money driving out good money, and ultimately reduced the level of the entire industry. In terms of innovative R&D expenditures, the current investment from countries and companies is insufficient, and there are more and more intellectual property disputes with foreign countries. To this end, we call for the equipment manufacturing industry to increase investment in R&D. In addition to attaching importance to equipment research and development, it is necessary to increase investment in technology and information. Without advanced technology, there can be no advanced equipment. At the same time, under the trend of global economic integration, we should increase the tracking and absorption of cutting-edge technology, management, and patent information so that information can promote the development of the industry.
Reporter: At present, China once again emphasizes the revitalization of equipment manufacturing and localization. What do you think can be improved in this regard? What role will the Association play in it?
Zhao Zhiming: The localization work must have an organizational structure to coordinate leadership and coordination. Without organizational guarantee policies, it cannot be implemented. China established the State Council Leading Group for the Major Localization of Technical Equipment in 1983 and was later revoked for various reasons. The "State Council's Several Opinions on Revitalizing the Equipment Manufacturing Industry" just announced clearly stipulates that the National Development and Reform Commission is specifically responsible for the revitalization of the organizational leadership and coordination of the equipment manufacturing industry. However, this alone is not enough, and the State Council has identified 16 key technologies for key development. Equipment should also have special organizational guarantees. Another point that needs to be pointed out is that under the conditions of the planned economy, what we have adopted is the management mode of managing money and goods. This is not feasible under current market economy conditions, and there should be breakthroughs in the management system and mechanism. Innovation. In addition, in the past, China’s series of policy measures on the equipment manufacturing industry were often superficial, non-specific, and lacked operability and coherence. This should also be the direction and goal of future reforms.
The "Opinions" also pointed out that the revitalization of the equipment manufacturing industry should play a role in associations, especially professional associations. To this end, the association should play a good role as a bridge link, build a platform for exchanges and cooperation, and build a fair competition environment for domestic and foreign companies with different ownership. At the same time, it truly represents the interests of the industry and dares to submit different opinions to the government, instead of acting as a "two government," and taking the government's policies to issue orders or seek private interests.
Creating a New Situation for Vitalizing Petroleum and Petrochemical Equipment——An Interview with Zhao Zhiming, Vice Chairman and Secretary General of China Petroleum and Petrochemical Equipment Industry Association
On June 28th, the change of the China Petroleum and Petrochemical Equipment Industry Association (CAST) and the 6th member representative meeting were held in Beijing. During the meeting, the reporter interviewed Zhao Zhiming, executive vice chairman and secretary-general of China Stone Association, on several hot issues in the development of petroleum and petrochemical equipment manufacturing industry.