Jinmen Petrochemical Focuses on "Oil-to-Specialty" Transformation to Build a Benchmark for Central China’s Specialty Oil Industry

Sinopec Jinmen Branch (Jinmen Petrochemical) was founded in 1970 under Sinopec Group. Located in Jinmen, central Hubei Province, it enjoys convenient highway, railway and waterway transportation. As a super-large integrated petrochemical enterprise integrating fuel oil, lubricant and chemical production, it is the largest production base for lubricant base oils and specialty oil products in central China. Over more than 50 years of development, starting as a refinery built during the Third Front Construction, it has undergone restructuring, capacity expansion and strategic transformation. Evolving from a conventional medium-sized refinery, it has grown into China’s producer with the widest product portfolio and largest output of specialty oils. Guided by its "oil-to-specialty" strategy, the company has stood out amid fierce industrial competition, setting a benchmark for petrochemical transformation and green high-quality development in central China.

1. Development Journey: Over 50 Years of Progress from Third Front Construction to a Specialty Oil Leader

Jinmen Petrochemical’s development mirrors the expansion and high-end transformation of China’s petrochemical sector, as well as state-owned enterprises’ drive for reform and technological breakthroughs. Its growth can be divided into three distinct phases aligned with national industrial layout strategies.

Foundation-Laying Phase (1970–1990)

In May 1970, construction kicked off on its first atmospheric and vacuum distillation unit, marking the official launch of the plant. Its core mission back then was to secure regional energy supply and address underdeveloped petrochemical capacity in central China. In 1972, Jinmen Refinery was established under Jianghan Petroleum Administration. It was placed under China Petrochemical Corporation in 1983, entering standardized large-scale development. Expanded processing units and crude oil throughput built a solid technical and production foundation for future transformation.

Restructuring & Upgrading Phase (1991–2000)

Amid national industrial system reforms, the enterprise accelerated expansion and institutional restructuring. It was renamed Sinopec Jinmen Petrochemical General Works in 1991 and designated a national super-large enterprise in 1998. In 2000, full restructuring split the operation into two entities: Sinopec Group Jinmen Petrochemical General Works and Sinopec Jinmen Branch. The core business was listed on the New York, London and Hong Kong stock exchanges alongside Sinopec Corp., optimizing institutional mechanisms to fuel subsequent transformation.

Transformation & Breakthrough Phase (2001–Present)

In the 21st century, intensified competition in refined oil markets and its inland location squeezed profit margins of traditional fuel production, making industrial transformation imperative. Jinmen Petrochemical launched its "oil-to-specialty" shift:

Over five decades, the plant has processed over 150 million tons of crude oil and contributed more than CNY 100 billion in tax revenue. Its annual tax payment accounts for over 40% of Jinmen’s total fiscal income, serving as a backbone of local economic growth. It has won numerous honors including China Top 500 Industrial Enterprises, National May 1st Labor Medal and Sinopec Green Enterprise. Its trademark brands Guta and Xinhua are recognized as Hubei Famous Trademarks, reflecting balanced economic performance and state-owned enterprise social responsibility.

2. Core Business: Outstanding Results of "Oil-to-Specialty" Strategy Build Diversified Collaborative Operation Layout

With an annual crude oil processing capacity of 6 million tons and 41 refining and chemical units including distillation, fluid catalytic cracking, catalytic reforming and lubricant hydro-upgrading facilities, Jinmen Petrochemical boasts one of China’s most complete refining process suites. It manufactures 100+ grades across 44 product categories. In recent years, it has steadily cut the proportion of conventional refined oil products and prioritized R&D and production of specialty oils and high-end chemicals. A business framework centered on specialty oils with coordinated fuel and chemical production has taken shape, shifting its development focus from capacity expansion to quality and profitability.

2.1 Specialty Oil Business: Industry-Leading Full Product Line & Market Share

Specialty oils serve as the core growth engine and competitive edge of Jinmen Petrochemical’s transformation. Over two decades of dedicated development, it offers over 40 high-end products covering white oil, paraffin wax, petrolatum and solvent oil for construction, textiles, cosmetics, rubber, new energy, pharmaceuticals and oilfield exploitation. Many premium grades match or exceed international benchmarks, substituting imported specialty oils.

White oil represents its strongest segment, capturing 50% of China’s high-grade white oil market. Its 68# and 100# high-viscosity white oils fill domestic market gaps and rank first in national market share, setting industry price and quality benchmarks. The company achieved a landmark breakthrough in pharmaceutical-grade specialty oils by late 2024, when its integrated high-end specialty oil technology project passed Sinopec technical appraisal. It fully developed, manufactured and commercialized injectable white oil, a critical raw material for animal vaccines with performance matching imported equivalents, eliminating foreign supply reliance. By the end of 2025, nearly 1,000 tons of JSV-P-5 injectable white oil had been sold to five clients, two of whom adopted it for mass vaccine formulation.

Leveraging technical advantages, Jinmen Petrochemical adopts customized production tailored to sector-specific demands:

High-grade white oil sales surged 30% year-on-year in June 2025 to an all-time high, validating the success of its "oil-to-specialty" strategy.

2.2 Fuel & Chemical Business: Optimized Operation to Support Core Transformation

While scaling up specialty oil output, Jinmen Petrochemical continuously upgrades fuel and chemical segments to create synergies for its core transformation.

For fuel products, it adheres to clean, efficient production of national-standard gasoline and diesel under strict environmental controls. During the 13th Five-Year Plan period, total emissions of COD, ammonia nitrogen, sulfur dioxide and nitrogen oxides dropped by 53%, 91%, 79% and 53% respectively despite expanded unit capacity, balancing energy supply with green production.

Its chemical segment targets high-value fine chemicals. Polypropylene units produce T36F film-grade resin for packaging and construction markets. A dedicated LPG separation facility enables precise fractionation and targeted sales of propane, isobutane and n-butane, maximizing resource value via customized production and differentiated sales. By recycling production byproducts to develop premium chemicals, the plant cuts operating costs and generates capital for specialty oil R&D and capacity expansion, forming a circular resource utilization loop.

3. Core Competitiveness: Technology-Driven Green Development & Refined Management Underpin High-Quality Growth

Amid fierce industry competition, Jinmen Petrochemical has emerged as central China’s specialty oil benchmark backed by three irreplicable strengths: technological innovation, green low-carbon development and refined management.

3.1 Technological Innovation: Industry-University-Research Collaboration to Break High-End Technical Barriers

Technological innovation acts as the core driver of transformation. Jinmen Petrochemical has built a complete R&D-testing-commercialization system with a dedicated specialty oil research base, advanced testing equipment and a senior engineer-led R&D team tackling key industry bottlenecks.

It deepens industry-university-research cooperation with top research institutes such as Sinopec Dalian Research Institute to optimize processing workflows, conduct long-cycle product testing and scale up mature formulations, shortening R&D cycles and boosting technology conversion efficiency. During injectable white oil development, joint R&D overcame core purification and modification technologies to enable mass domestic production and import substitution.

Major facility upgrades include a 100,000-ton/year high-grade white oil hydrotreating unit, a 550,000-ton/year high-pressure hydrogenation unit and a 200,000-ton/year isodewaxing unit, steadily lifting specialty wax and oil capacity, production efficiency and product quality. A cross-functional sales-R&D team quickly responds to customized client requirements; for example, a tailor-made textile oil agent was developed within one month for a Zhejiang textile manufacturer in 2021. Between 2003 and 2022, over 5 million tons of new specialty products generated more than CNY 8 billion in incremental profits, proving innovation-led transformation as a sustainable growth path.

3.2 Green Development: Strict Environmental Compliance to Boost Output While Cutting Pollution

Upholding green, low-carbon and clean production as its core operational principle, Jinmen Petrochemical treats environmental protection as a lifeline. It has earned titles including Sinopec Green Enterprise and Hubei Healthy Enterprise.

Since the 14th Five-Year Plan, CNY 1.3 billion has been invested in safety and environmental projects to build a full-process three-waste treatment system:

Major pollutant emissions declined significantly during the 13th Five-Year Plan despite capacity growth, exceeding national and local regulatory standards. The enterprise released ten mandatory environmental protection measures, appointing local community residents as external environmental supervisors to maintain transparent operation and balance industrial growth with ecological protection.

3.3 Refined Market-Oriented Management to Strengthen Service Competitiveness

Guided by the philosophy "market demand dictates production, service builds competitiveness", Jinmen Petrochemical implements refined management across R&D, manufacturing, sales and customer service to stabilize core client partnerships.

Production teams deploy strict process control and comprehensive quality assurance systems to sustain high product qualification rates. R&D pipelines align closely with market demand to avoid ineffective research and maximize return on investment. Its cross-functional specialty oil sales team with manufacturing and R&D expertise delivers personalized solutions for diverse industries. For instance, tropical climate-adapted products were developed to retain a glass adhesive client relocating manufacturing to Southeast Asia. Optimized LPG fractionation and targeted sales create a value-upgrading cycle of precise separation, specialized marketing and quality improvement to strengthen market advantages.

4. Social Responsibility: Fulfilling State-Owned Enterprise Missions to Fuel Regional Growth

Rooted in Jinmen for over 50 years, Jinmen Petrochemical shoulders its role as the leader of Jinmen’s petrochemical industrial chain, aligning corporate growth with regional economic development, energy security and public welfare.

In economic contribution, 2024 set all-time records for crude processing volume, product output, sales revenue and tax payment of CNY 8.537 billion, ranking fourth among Hubei industrial enterprises and first in Jinmen. It drives coordinated growth of upstream and downstream sectors including heavy equipment, logistics and fine chemicals, fostering industrial clusters and upgrading local industrial structures.

For energy security, balanced supply of fuel and specialty oils supports manufacturing, transportation and new energy industries across central China, advancing national energy strategies.

In public welfare, the enterprise invests in local ecological conservation, poverty alleviation and community infrastructure, promotes rural revitalization via industrial and employment support, and organizes volunteer services to build harmonious company-community relations.

5. Future Blueprint: Accelerate Construction of Million-Ton Specialty Oil Base to Write New Transformation Chapters

Aligned with Sinopec Group’s overall strategy, Jinmen Petrochemical targets three long-term goals: a million-ton-grade specialty oil base, a central China characteristic lubricant hub and an integrated oil-chemical-specialty enterprise. It will deepen its "oil-to-specialty" transformation toward high-end, differentiated and low-carbon development to achieve leapfrog growth by the end of the 14th Five-Year Plan and lead China’s specialty oil industry.

  1. Speed up key project construction to expand specialty oil capacity The CNY 1.358 billion 600,000-ton/year naphthenic specialty oil high-pressure hydrogenation unit is under construction, scheduled for commissioning in June 2026. It will produce 300,000 tons of naphthenic rubber plasticizers, transformer oil and feedstock for high-grade white oil annually. Upon completion, total specialty oil capacity will rise from 790,000 tons to 1.367 million tons per year, potentially making Jinmen Petrochemical China’s largest specialty oil manufacturer with stronger scale advantages and market dominance.
  2. Deepen technological innovation to lift product added value R&D investment will be increased to tackle core technologies for pharmaceutical and aerospace-grade specialty oils via expanded industry-university-research collaboration. More high-value, high-tech products will be developed to expand overseas markets, shifting from domestic import substitution to global export and brand leadership.
  3. Stick to green low-carbon development and raise environmental standards The enterprise will fully implement dual-carbon targets, upgrade environmental facilities, deploy carbon reduction technologies and optimize circular economy systems. Upgraded waste treatment and clean energy replacement will build an odor-free garden-style green refinery to advance circular and low-carbon development.
  4. Strengthen industrial chain coordination to integrate enterprise and regional growth As Jinmen’s petrochemical chain leader, the company will boost upstream and downstream collaboration and lobby Sinopec headquarters to channel specialty-oil-suitable crude oil to Jinmen for centralized processing, forming a complete R&D-pilot-commercialization industrial ecosystem. Open and transparent operation will deepen local partnerships, expand employment and promote balanced corporate and regional development.

Over half a century of perseverance and innovation has turned Jinmen Petrochemical from a Third Front refinery into central China’s specialty oil benchmark. Moving forward, the accelerated construction of its million-ton specialty oil base will consolidate its core strengths, break new technical barriers and explore high-end tracks. It will continue advancing the transformation of Sinopec’s refining segment, safeguarding national energy security and driving high-quality regional economic growth.