On June 28, the sixth member representative meeting of the China Petroleum and Petrochemical Equipment Industry Association was held in Beijing. During the event, Yu Zhen, president of the China Federation of Machinery Industry, emphasized that with the continuous enhancement of China's overall economic strength, the revitalization of the equipment manufacturing industry has once again become a key focus of national economic development. Recently, the State Council released several guiding opinions on accelerating the revitalization of the equipment manufacturing sector, marking the beginning of a new era of growth for the machinery industry. For oil and petrochemical equipment companies, which are deeply integrated into long industrial chains, this is an opportunity not to be missed.
Despite significant progress, many Chinese petroleum and petrochemical equipment companies still face challenges. While they have strong manufacturing capabilities, their innovation capacity remains weak. Currently, there is a gap between China’s standards and international benchmarks. For example, in the oil drilling equipment sector, over 188 enterprises employ around 47,000 people, forming a relatively complete production system. Key centers include Baoji, Lanzhou, Jianghan, Nanyang, and Sichuan for drilling and mining equipment; Shanghai and Jiangsu for wellhead equipment; and Jianghan and Sichuan for oil bits. China has developed a range of drilling rigs, including electric drive and top drive systems, capable of meeting advanced drilling techniques such as directional and horizontal drilling.
In petrochemical equipment, China has made remarkable achievements in localizing major facilities like oil refining, chemical processing, and fertilizer plants. Over 95% of refining equipment and 70% of chemical equipment are now domestically produced. The domestic production rate for ammonia and urea plants has reached 80% and 85%, respectively, while ethylene plant equipment stands at 60-65%. Many technical issues, such as those related to ethylene and chemical fertilizers, have been resolved, improving stability and reliability.
However, compared to global leaders, China still lags in areas like rig intelligence, product diversity, and geophysical equipment. Domestic seismic equipment is largely imported, and some specialized offshore and petrochemical equipment still requires foreign imports. This highlights the need for stronger industry coordination.
Zheng Hu, the new secretary-general of the association, pointed out that fragmented R&D efforts, lack of unified planning, and inefficient information sharing hinder progress. The industry suffers from low-level competition and redundant construction, leading to wasted resources and disorderly growth.
To address these issues, Yu Zhen recommended a "joint, cooperative, and win-win" approach. The association should leverage government support and user collaboration to drive breakthroughs in key equipment like ethylene and offshore oil systems. Wang Jiming, president of China Petroleum & Chemical Corporation, urged companies to identify gaps, develop research topics, and work together to secure policy support, tax incentives, and user cooperation. Through technology absorption and cross-regional collaboration, China can enhance its independent technological capabilities and further advance the localization of its petroleum and petrochemical equipment.
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