Domestic air separation equipment production and sales are booming

Recently, a reporter from China Chemical News learned from the Gas Separation Equipment Branch of the China General Machinery Industry Association that, according to incomplete statistics, since July this year, the engineering bidding, contract signing, design and manufacturing, product delivery, engineering construction, and operation and production of China's large-scale air separation equipment and gas separation equipment industries have shown an unprecedented booming production and sales situation.

On July 23, Praxair announced that two sets of T2400 ultra-large air separation units, built for CNOOC Huizhou Refining & Chemical Phase II 12 million tons/year refining project and 1 million tons/year ethylene project, were put into operation in Dayawan Petrochemical Industrial Park, Huizhou, Guangdong. On July 16, Hangyang Group announced that it had recently signed a "Comprehensive Air Separation Service Management Contract" with Henan Jinda Chemical Co., Ltd., to provide comprehensive service management for Jinda's 64000Nm3/h air separation system (including air separation circulating water system). On July 9, Zhejiang Xinrui Air Separation Equipment Co., Ltd. won the bid for two sets of 40000Nm3/h oxygen generating unit technology and equipment complete package management consulting services contract for Guangxi Liuzhou Steel Group Co., Ltd.'s Fangchenggang Guangxi Steel project. As of July 9, all 90000Nm3/h extra-large air separation units supplied by Hangyang Group for Xinjiang Tianye's 600,000 tons/year ethylene glycol project have successfully entered the factory.

"In recent years, China's air separation market has shown enormous potential, creating significant room for development for the air separation equipment and industrial gas industries. In addition to being widely used in traditional fields such as metallurgy, energy, petrochemicals, modern coal chemical industry, automobiles, and energy-saving buildings, air separation equipment is also used in chip manufacturing processes. Even satellite launches require oxygen provided by air separation equipment mixed with fuel combustion to propel rocket launches, all of which have promoted the development of the air separation equipment industry," Zhao Yuewei, an industry analyst at Guojin Securities Smart Manufacturing and New Materials Research Center, told reporters.

Xu Jianping, Deputy Secretary-General of the China General Machinery Industry Association and Secretary-General of the Gas Separation Equipment Branch, stated that as of now, China's installed capacity of air separation equipment reaches over 39 million m3/h, with an average annual increase of 2 million m3/h. Among these, petrochemicals account for 52.6%, metallurgy for 38.5%, and other building materials, machinery, etc., account for 8.9%. In 2017 alone, more than 30 new purchase and sales contracts for air separation equipment above the 70,000 class were signed domestically.

Zhao Yuewei stated that with the upgrading of refining, coal chemical, and steel capacities in the upstream and downstream, air separation equipment is developing towards large and extra-large sizes, and related equipment investments are gradually being converted into procurement orders. According to calculations, over the next 3 years, the aforementioned three major industrial upgrades are expected to drive a total air separation equipment demand of approximately 39.125 billion to 40.935 billion yuan, with an annual demand of approximately 11.182 billion to 18.138 billion yuan. It is expected that this round of equipment investment cycle will remain high within 2020.