Shaoxing Sanyuan - China's First Private PP Manufacturer     

Shaoxing Sanyuan Petrochemical Co., Ltd. (Shaoxing Sanyuan), a subsidiary of Zhejiang Shaoxing Fuling Industrial Group Co., Ltd. (Fuling Group), was founded in Shaoxing Paojiang Industrial Zone of Zhejiang province in January 2004. Shaoxing Sanyuan, as the sole private enterprise operating a 300 000 t/a polypropylene production unit in China up to now, shared a cake in domestic polypropylene business that Sinopec Group and CNPC together hold over 95% market share. Polypropylene particle materials made by Shaoxing Sanyuan can be widely used as a basic raw material in plastic injection molding, filament drawing, sock, apparel, toy, plastic-steel and construction plastic-tube sectors.

China's First Private PP Enterprises   

Since the mid-1990s, China's polypropylene output has increased to 7.1269 million tons in 2007 from 1.0735 million tons in 1995. At present, the demand for polypropylene tends to be saturated in the Pearl River Delta region of southern China, but still has potential in the Yangtze River Delta region, particular in Zhejiang province that the annual demand for polypropylene has been more than 2 million tons in recent years.
   China is a large producer and consumer of polypropylene worldwide. Because Sinopec Group and CNPC have monopolized the production technology of polypropylene in China, the polypropylene business becomes the important source of profits in the two group's products chain. At present, the domestic supply of polypropylene can not meet the local demand, China's has annually imported polypropylene around 3 million tons since 2005, and annual demand for polypropylene has grown basically in pace with the GDP growth.
   Fuling Group, the parent company of Shaoxing Sanyuan, engages in producing plastic film for packaging. Because polypropylene is one of the main raw materials for plastic film, Fuling Group has gradually been aware of, through using polypropylene for a long time, the importance to produce polypropylene itself. In 2003, Fuling Group decided to invest RMB2 billion in building a 600 000 t/a of polypropylene project - the largest single line production capacity in China. Because the construction of polypropylene project acquires huge investment and high technological threshold, fewer private enterprises have the ability to enter into this field, therefore Sinopec Group did not block the polypropylene production technology to Fuling Group. Instead, Sinopec Group licensed the complete set of polypropylene production patents to Shaoxing Sanyuan, in addition, had its subsidiary - Sinopec Engineering Incorporation done the design for Shaoxing Sanyuan.

Strive for Perfection   

Shaoxing Sanyuan started to construct the 600 000 t/a polypropylene project in August 2004, (CCR2004 No.3) and commenced production of its first phase project - 300 000 t/a single production unit in October 2006. The world advanced Spheripol technology is used, which can continuously produce various kinds of polypropylene resins. Now, Shaoxing Sanyuan can produce 1 000 tons per day of the polypropylene, therefore will obtain an annual net profit of more than RMB300 million. Since commissioning of the first phase project, Shaoxing Sanyuan has paid great attention to promote the products' competitiveness in market and value-added. The company also has developed raw materials for F280F type high-speed BOPP plastic film. The company's polypropylene shared above 90% markets in Zhejiang province.
   Shaoxing Sanyuan had no experience in the production of polypropylene before 2003. The company requested the project team to complete the design work and the implementation plan deferring to the high beginning design, the high standard plan; enlarge the specific gravity of new technical equipment to promote the technical level and the product quality; and actively exchange with Sinopec Group and other polypropylene companies about production technologies.

Smooth Sale   

Shaoxing Sanyuan's polypropylene unit, with a designed capacity of 1 000 t/d, reaps annual revenue of RMB4 billion for Shaoxing Sanyuan, which has maintained zero inventory. Because Shaoxing Sanyuan can directly provide its new products to Fuling Group for trial using, it can receive the most accurate feedback about the quality of the new products within three days, shorten by over 1/3 in the feedback time compared to similar products produced in other companies, therefore Shaoxing Sanyuan can control the quality of products promptly.
    Shaoxing Sanyuan plans to invest RMB780 million to construct the second phase project of 300 000 t/a polypropylene and the matching project of 30 000 m3 accumulator tankfarm in Ningbo wharf that is expected for startup before the end of 2008. After the completion, the second phase project will help the company to achieve an annual revenue of RMB10 billion.