Baling Petrochemical: Excavating Benefit from Market Gap
Since the start of this year, as the entire chemical market has softened, Sinopec Baling Petrochemical Company has been working hard to enhance the value of small products by increasing production volumes and optimizing product mix. This strategic move has helped the company maintain competitiveness in a challenging environment.
One of the key initiatives is the development of butyl lithium, a crucial catalyst used in the production of SBS (styrene-butadiene-styrene) rubber. The Synthetic Rubber Business Unit at Baling has long relied on its own butyl lithium production for internal use. However, with the expansion of SBS equipment and advancements in technology, the production capacity and quality of butyl lithium have significantly improved over the years. Initially, the concentration was only 9% when the facility was first launched in 1998, but it has now reached 24%, with purity exceeding 98%. The unit has undergone nearly 10 major upgrades, increasing annual production from 100 tons to 200 tons.
In addition to meeting internal needs, the department recognized the potential for external sales. In the first quarter of this year, they sold over 17 tons of butyl lithium, representing a 20% increase compared to the same period last year. This success highlights the growing demand for high-quality butyl lithium in the domestic market.
Meanwhile, the Epoxy Resin Division has focused on expanding its market presence both domestically and internationally. As the sole domestic producer of epoxy organochlorine products, the division has worked to integrate specialized resin solutions and improve product differentiation. By reconfiguring outdated E-type resin facilities, they have created a more comprehensive product line that includes curing agents, specialty resins, and other auxiliary materials.
The division has also invested in developing a wide range of matching materials, such as hardeners, thinners, and toughening agents, tailored to specific customer needs. A dedicated curing agent workshop has been established to streamline operations and accelerate research into application-based products. This approach has not only enhanced customer satisfaction but also strengthened the company’s direct sales and after-sales support.
To date, the Epoxy Resin Division has produced and sold over 350 tons of Baling-branded curing agents and auxiliary materials across 17 varieties, serving nearly 100 users nationwide. In the first quarter alone, output exceeded 170 tons, with March seeing over 80 tons—more than double the average monthly output from the previous year. These efforts have also contributed to increased sales of Baling's epoxy resins.
Another notable initiative involves the effective utilization of by-products like hydrochloric acid and DD blends. While these were once considered waste, the Epoxy Resin Division has turned them into valuable resources. Through targeted market outreach and technological improvements, they have expanded the applications of these by-products into industries such as pharmaceuticals, food, electroplating, and electronics. By optimizing production processes and enhancing product value, the selling price of these by-products has risen from a few hundred to over 2,000 yuan per ton, making them highly sought after in the market.
Overall, Baling Petrochemical continues to demonstrate resilience and innovation, transforming challenges into opportunities through continuous improvement and strategic diversification.
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