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, Executive Vice Chairman and Secretary-General of the China Stone Association, discussing key issues facing 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 member units?
Zhao Zhiming: Established in 1985, the China Stone Association initially broke through departmental, industrial, regional, and ownership barriers. However, for many years, it operated more like a government-run entity under a planned economy. In 2002, it began reforms aligned with international standards. Leaders from major companies such as Sinopec, CNPC, and CNOOC took turns serving as chairmen. The fifth board was led by Zheng Hu, former deputy general manager of CNPC, and the sixth board is now chaired by Wang Jiming, former president of Sinopec. Currently, the association has 160 governing units and over 700 members—an increase of more than 300 compared to the previous term.
Reporter: With domestication becoming a core part of revitalizing China’s equipment manufacturing industry, especially for large-scale projects like one million tons of ethylene and PTA plants, what are your views on how to implement localization? What are the next steps?
Zhao Zhiming: Localization of major petrochemical equipment is a top priority for the association. Sinopec has long emphasized this, achieving significant results. Since the "Eighth Five-Year Plan," over 2,000 sets of equipment were developed domestically, saving over 5 billion yuan in costs. Recently, senior Sinopec leaders invited over 10 experts to review the localization office's work report, setting clear goals for the future. Next, Sinopec will focus on developing new equipment after large installations, aiming for 95% localization in 10 million ton refining equipment. It also plans to develop 1 million ton ethylene projects, targeting breakthroughs in critical components like ethylene triples, cold boxes, and reactors. Additionally, research will continue on PTA project equipment, ensuring long-term monitoring and improvement.
Looking back at Sinopec’s 20-year experience, several lessons stand out: strong leadership, strict management, risk diversification, and collaboration between research, design, manufacturing, and users. These factors have been crucial in driving successful localization efforts.
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: intellectual property and technological innovation, corporate management, and talent. Currently, R&D spending in Chinese equipment firms is only 2-3% of revenue, far below the 5-10% seen in developed countries. Improving management and investing in talent are equally important. Companies must raise awareness, increase R&D investment, and track global technology trends to stay competitive.
Reporter: With China emphasizing the revitalization of equipment manufacturing and localization, what improvements are needed, and what role should the association play?
Zhao Zhiming: Effective localization requires proper organizational structures and policy support. While the State Council has taken steps, more targeted measures are needed. The association should act as a bridge, promoting fair competition and representing industry interests. It should not merely follow government policies but actively advocate for the industry’s needs, ensuring that local voices are heard and that real progress is made.
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