Shandong Yulong Petrochemical Co., Ltd.

Shandong Yulong Petrochemical Co., Ltd., founded in 2019 and located in Yantai City, Shandong Province, is an enterprise engaged in the manufacturing of chemical raw materials and chemical products, with the production of oil refining products, chemical basic raw materials, and high-end polyolefin products as its main business. The 40 million tons/year Yulong Island Refining and Petrochemical Integration Project invested by the company is a major project of the industrial metamorphosis and upgrading, promoting the high-quality development in Shandong Province, and a benchmark project for the transformation of the old and new kinetic energy. The project is implemented in two phases with a master plan. The first phase of the project focuses on the construction of 20 million tons/year of oil refining, 3 million tons/year of ethylene, 3 million tons/year of mixed xylene, as well as gasoline, aviation paraffin, diesel fuel, ethylene glycol, HDPE, UHMWPE, PP, EVA/LDPE, butadiene-isoprene rubber, integrated rubber, ABS and other deep-processing units. The main business mainly includes four categories:

Oil Refining Products: Highly clean fuel products such as gasoline, paraffin, diesel, marine fuel oil and other oil refining products such as sulphur, asphalt and catalytic slurry are produced through atmospheric and vacuum distillation, catalytic cracking, hydrocracking and other process units.

Abundant Chemical Basic Raw Materials: C2-C10 components are produced, including ethylene, propylene, butadiene, xylene, benzene, toluene, ethylene oxide, styrene, ethylene glycol, and more than twenty other basic raw materials, providing high-quality, low-cost and colourful basic chemical materials for downstream deep-processing units.

High-end Polyolefin Products: Shandong Yulong Petrochemical Co., Ltd. is aimed at the differentiated high-end product development of polyolefin, producing the high-end polyolefin products. For example, EVA products with the high content of vinyl acetate (VA content up to 40%) and the copolymer products of ethylene and acrylate are used in the production of high-end foamed products, photovoltaic cell encapsulation film, hot melt adhesives, coating, etc. Polypropylene with high rubber content, ternary polypropylene with low heat sealing temperature, and metallocene polypropylene can replace imports and the market prospect is promising.

Synthetic Rubber Products: The company aims to produce high-end synthetic rubber such as high-end tombarthite butadiene rubber and functionalized modified solubilized styrene-butadiene rubber, providing high-quality synthetic rubber raw materials for high-end green tyres, improving the performance of tyres with high resistance to wet skidding and low rolling resistance, as well as improving the comprehensive performance of tyres.

In October, 2023, at the 4^th Qingdao Summit of Leaders of Multinational Corporations, co-hosted by the Ministry of Commerce of the People's Republic of China and the People's Government of Shandong Province, a Memorandum of Understanding (MOU) was signed by Shandong Yulong Petrochemical Co., Ltd. with Nanshan Group Co., Ltd., Shandong Energy Group Co., Ltd. and Saudi Aramco (Saudi Arabian Oil Company). The MOU reflected the initial intentions and principles of the cooperation between the parties, with Saudi Aramco or its affiliates intending to acquire minority shares of Shandong Yulong Petrochemical Co., Ltd. to participate in the Yulong Island Refining and Petrochemical Integration Project; Saudi Aramco or its affiliates intended to co-operate with Shandong Yulong Petrochemical Co., Ltd. in areas such as long-term procurement and supply of crude oil and other raw materials.