On May 29, the construction of the heavy chemical equipment manufacturing branch of Shanxi Fengxi Chemical Equipment Co., Ltd. officially commenced, marking a significant milestone in the development of Shanxi’s first large-scale non-standard chemical equipment manufacturing base. This initiative is expected to boost the localization of coal chemical equipment production and enhance the region’s industrial capabilities.
According to Shanxi Chemical’s “Eleventh Five-Year Plan†strategy, the province aims to become a key energy and coal chemical base, with projects such as coal-to-oil production (1 million tons per year), tar processing (300,000 tons per year), and crude benzene utilization set to begin soon. In chemical project investments, equipment accounts for over 20%, and in coal-to-oil projects, it exceeds 30%. With this growth, Shanxi’s coal chemical industry is projected to create a massive equipment market worth 35 billion yuan. This sets the stage for a major opportunity in building a specialized base for large-scale, non-standard equipment manufacturing.
As of March this year, the project has completed site inspections, evidence collection, and preliminary design, and has been submitted for filing with the Shanxi Provincial Development and Reform Commission. The base will be developed in stages, with an initial investment of 350 million yuan. The first phase includes establishing a heavy chemical equipment manufacturing branch, a specialized unit for stainless steel and special materials equipment, and an environmental protection equipment division. It will also involve setting up chemical accessory manufacturing branches, professional teams for equipment transportation, installation, maintenance, and technical services, as well as acquiring advanced, energy-efficient processing equipment and improving inspection systems and warehousing facilities.
The entire project is scheduled to be completed and operational by the end of 2008. Once launched, the base is expected to produce 100,000 tons of chemical equipment annually, generate sales revenue exceeding 2 billion yuan, and contribute 350 million yuan in profits and taxes. This marks a transformative step for Shanxi’s chemical industry and underscores its growing role in national energy and industrial development.
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