China National Chemical Engineering Group has aligned with Yanchang Petroleum and Shaanxi Coal Group under the dual main lines of coal chemical industry and new materials.

During the talks with Zhang Kaiyong, Party Secretary and Chairman of Shaanxi Yanchang Petroleum Group, the two sides exchanged views on topics such as oil and gaseous sector research, business layout optimization, and extending and supplementing the chemical sector chain, and explored further leveraging the existing project cooperation foundation to expand cooperation space in new material fields.

When meeting with Zhao Futang, Deputy Party Secretary, Director and General Manager of Shaanxi Coal Group, the two sides focused on directions such as coal chemical sector upgrading, new energy and new material layout, and domestic and overseas business collaboration, and planned broader strategic cooperation based on the experience accumulated in major coal chemical projects.

Review of implemented projects: Hualu Company undertakes two key EPC projects

China National Chemical Engineering's Hualu Company already has mature project cooperation foundations with the two regional state-owned companies in Shaanxi.

Yulin Coal Chemical Ethanol and Acetic Acid Downstream items Project of Yanchang Petroleum

In April 2026, Hualu Company signed the EPC general contracting contract to the first phase of the ethanol and acetic acid downstream items project with Yulin Coal Chemical Company of Yanchang Petroleum Group. The project is located in the Coal Chemical manufacturing Park of Yuheng manufacturing Zone, with a total investment of 6.868 billion yuan. It plans to build 300,000 tons/year vinyl acetate, 30,000 tons/year ultra-high molecular weight polyethylene, 50,000 tons/year vinyl oil, 50,000 tons/year α-olefins, 100,000 tons/year polyolefin elastomer (POE) and other units and supporting facilities, focusing on the high-end polyolefin new material track.

Shaanxi Coal Yulin Coal Clean Coal Conversion Project

In December 2025, Hualu Company signed an EPC general contracting contract to the atmosphere separation unit, methanol rectification unit and polypropylene unit of the second phase and first stage of the 15 million tons/year coal clean and efficient conversion demonstration project with Yulin Chemical Company of Shaanxi Coal Group, providing core unit engineering construction services to the extensive coal chemical demonstration project.

Cooperation Outlook: Based on coal chemical sector, extending to new materials and domestic and overseas businesses

Judging from the implemented projects, the cooperation between the two parties has extended from traditional coal chemical engineering construction to high-value-added new material sectors such as POE and ultra-high molecular weight polyethylene. This high-level meeting aims to connect methodology, engineering and manufacturing layout based on the existing EPC projects, continue to deepen the central-regional chemical sector collaboration, and tap new development areas such as new energy, new materials and overseas businesses.