Shandong's state-owned companies try to combine production, education and research

At the 2006 Shandong Production, Research and Development Conference held on May 30th, attendees from companies like Shandong Lubei Chemical Co., Ltd., Yankuang Guotai Chemical Co., Ltd., and Shandong Bin Chemical Group expressed their excitement: “We really tasted the sweetness of combining production, education, and research!” This statement reflected a growing trend in Shandong’s chemical industry, where collaboration between enterprises, universities, and research institutions was driving innovation and economic growth. According to data from the Shandong Provincial Economic and Trade Commission, in the first quarter of this year, there were 307 high-tech chemical companies in the province. Their output value reached 39 billion yuan, with exports of high-tech products hitting 3.6 billion yuan. Major companies such as Shandong Dongyue Group, Binhua Group, and Chengshan Group had formed close partnerships with top domestic and international academic institutions. These collaborations led to the establishment of joint technology development centers, enabling breakthroughs in key technologies that helped Shandong solidify its position as the largest chemical-producing province in China. Miao Shengrong, deputy general manager of Yankuang Guotai Chemical Co., Ltd., emphasized the importance of these partnerships: “The enterprise is the main driver of technological innovation, but without the support of universities and research institutes, it can’t fly.” He highlighted a recent project in Yantai, where a coal-based gasifier with a daily processing capacity of 1,000 tons was completed, supporting the production of 240,000 tons of methanol and 200,000 tons of acetic acid annually. This project relied heavily on advanced technologies developed through university-industry cooperation, including coal-water slurry gasification and clean coal power generation systems. Dr. Feng Xijin, director of Triangle Group’s post-doctoral research station, shared a similar experience. As tire demand evolved, manufacturers needed better solutions for performance and safety. By collaborating with Tsinghua University’s Automotive College, they solved critical issues related to tire-car compatibility, leading to the successful development of over 120 new radial tire models during the “10th Five-Year Plan” period. Lubei Chemical Co., Ltd., another major player in the sector, achieved sales revenue of 6.45 billion yuan last year and ranked among the top fertilizer producers in China. Its success, according to Deputy General Manager Lu Hongxuan, came from integrating production, education, and research. The company has established three independent circular economy industrial chains, covering ammonium phosphate, sulfuric acid, cement, seawater utilization, and clean power generation—each supported by key technologies developed through collaborative efforts. A representative from the Shandong Chemical Industry Office noted that such joint efforts not only addressed new technological challenges but also played a crucial role in absorbing and improving imported technologies. Wang Fucheng, director of Yantai Wanhua Polyurethane Co., Ltd.’s strategic development department, recalled how, in the 1970s, the company initially imported MDI technology from Japan but struggled with limited access to core knowledge. After years of intermittent production, they eventually partnered with local research institutions to develop their own MDI manufacturing technology, which became a major success when a 160,000-ton annual capacity facility was launched last year. These stories highlight a broader transformation in Shandong’s chemical industry—one driven by strong collaboration, continuous innovation, and a shared vision for sustainable growth.

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