On June 28th, the China Petroleum and Petrochemical Equipment Industry Association (CAST) held its leadership change and the 6th member representative meeting in Beijing. During the event, the reporter had an exclusive interview with Zhao Zhiming, the Executive Vice Chairman and Secretary-General of the China Stone Association, discussing key issues in the development of the petroleum and petrochemical equipment manufacturing industry.
Reporter: After the recent reorganization of the association, what changes have occurred within the organization and among its member units?
Zhao Zhiming: Established in 1985, the China Stone Association initially broke down barriers between departments, industries, regions, and ownership structures. However, for many years, it operated more like a government-run entity under a planned economy. In 2002, the association began aligning itself with international standards by allowing top executives from major companies such as PetroChina, Sinopec, and CNOOC to take turns serving as chairman. The fifth board was led by Zheng Hu, a deputy general manager at CNPC, while the sixth board was chaired by Wang Jiming, former president of Sinopec. Today, the association has 160 governing units and over 700 members—an increase of more than 300 compared to the previous term.
Reporter: With the domestication of critical petrochemical technologies like one-million-ton ethylene and one-million-ton PTA units becoming central to China’s equipment manufacturing revitalization, what are your views on achieving localization? What are the next steps?
Zhao Zhiming: Localization of major petrochemical technology and equipment is now a top priority for our association. Sinopec has long emphasized this goal, achieving significant results. Since the "Eighth Five-Year Plan," over 2,000 sets of equipment have been developed domestically, saving more than 5 billion yuan in investment. Recently, senior Sinopec leaders invited over 10 experts to review the progress of their localization efforts. Moving forward, Sinopec plans to develop 10 million-ton refining equipment, aiming for a 95% localization rate. It also intends to focus on 1 million-ton ethylene projects, targeting breakthroughs in key components such as ethylene trikes, cold boxes, and reactors. Additionally, the association will strengthen monitoring and improvement of already operational ethylene equipment and promote the use of domestically produced components in new projects.
Looking back at over two decades of experience, several lessons stand out: strong leadership, effective coordination, willingness to take risks, strict management, and collaboration across research, design, and manufacturing sectors.
Reporter: What do you see as the core competitiveness of the petroleum and petrochemical equipment manufacturing industry, and how can companies enhance their independent innovation capabilities?
Zhao Zhiming: Core competitiveness lies in three areas: independent intellectual property and technological innovation, high-quality management, and skilled talent. Currently, R&D spending in Chinese equipment firms is only 2-3% of revenue, compared to 5-10% in developed countries. Companies must raise awareness, invest more in R&D, and track global technological advancements. Without innovation, there can be no advanced equipment.
Reporter: With the current emphasis on revitalizing the equipment manufacturing industry and promoting localization, what improvements are needed, and what role should the association play?
Zhao Zhiming: Effective localization requires strong organizational support and policy implementation. While the State Council has assigned responsibilities to the National Development and Reform Commission, more targeted measures are still needed. Associations should act as bridges, foster collaboration, and ensure fair competition. They must also represent industry interests and provide constructive feedback to the government rather than merely enforcing policies for private gain.
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