"First of all, small devices with annual output of less than 1 million tons must be forcibly eliminated."

Feng Xiaochen raised a finger and said to Wang Zhenbin.

Wang Zhenbin hesitated and said: "About this issue, the Development and Planning Commission does have a plan to eliminate these backward production capacity in five to ten years. However, our current supply of refined oil is insufficient. If these small devices are eliminated, will the pressure on imported refined oil be greater?"

Feng Xiaochen said: "This is called putting it to death and then living. If the small refineries in the hands of each province are not closed, how can they have the motivation to build large refineries? The country's supply of refined oil is tight, and all provinces will use these small refineries as their own land. If the country does not take tough measures to force them to eliminate them, then in the future, they will have to take various expedient measures to make these small refineries survive, and ultimately bear huge burdens."

Xu Zhenbo interrupted: "I think what Mr. Feng said is reasonable. We are now protecting these inefficient small refineries and dare not accept the conditions for reducing the tariff on refined oil. You don't know that if we do not agree to this condition, we will lose a lot of other benefits."

Wang Zhenbin pointed at Feng Xiaochen with his finger and said, "I can't answer you this question now, so you should talk about your second point first."

Feng Xiaochen then raised his second finger and said, "My second point is related to the first point. After closing these small refineries, we can upgrade and transform large and medium-sized refineries of a certain scale, and increase the production capacity of each enterprise to an annual output of more than 10 million tons. In addition, we can also build two to three new refineries, and the scale of the new plant must be more than 20 million tons per year."

"This is why I want to invite you here." Wang Zhenbin said, "The Development and Planning Commission is indeed interested in building two to three new refineries with an annual output of more than 20 million tons, but each refinery of this size only has an investment of more than US$3 billion. I would like to ask your equipment company whether you have the ability to achieve the localization of these equipment. If you do not need to import equipment, in other words, you do not need to use foreign exchange, then our pressure will be much smaller."

Feng Xiaochen said: "We have never done a refining device with an annual output of 20 million tons. But we have accumulated a lot of technical accumulation in recent years. I believe we can take down this specification of equipment."

"There is no joke in the army?" Wang Zhenbin said seriously.

Feng Xiaochen smiled and said, "Why, do you want me to issue a military order to you?"

Wang Zhenbin also smiled, a little embarrassed. After laughing, he said seriously: "Realistically speaking, you have nothing to worry about when your youngest shot your breasts. But our chief director needs a clear reply, which involves whether the Development and Planning Commission can agree to the Ministry of Foreign Trade to relax the refined oil market. You can't joke."

When Xu Zhenbo heard Wang Zhenbin talk about himself, he said: "When it comes to the promise of joining the WTO, it is indeed necessary to be cautious. The relaxation of the refined oil market is a process. We can promise to reduce tariffs by 30% for three years, then reduce them by 30%, and then for three years. In the end, it takes about ten years to make our tariff level reach the level required by Americans. Ten years is a long time, but I know that the construction of a refinery requires a cycle, and the time for trial and error will be very limited. If we finally find that we cannot solve the technical problems and want to introduce large refining equipment from abroad, it involves both foreign exchange and time issues, and then we will be passive."

"It takes us less than ten years. If the Development and Planning Commission can provide policies and funds can guarantee that we can build three refineries with an annual output of 20 million tons of refined oil within five years. The technical level is not lower than the Western average, and the production cost is not higher than their average." Feng Xiaochen said confidently.

"You are really sure?" Wang Zhenbin's eyes were shining.

Feng Xiaochen said: "Lao Wang, Director Xu, you are engaged in economic management and may not know much about our industrial field. In fact, oil refining is the lowest technical threshold in the entire petrochemical industry. In contrast, large ethylene devices, large paraxylene devices, etc. are the most technically difficult. Compared with the 5 million tons of refining equipment we have built in the past, the scale has been expanded, such as the diameter of the distillation tower must reach more than 10 meters, the weight of the hydrogenation reactor reaches more than 1,000 tons, and large heat exchangers, large heating furnaces, large pressure vacuum systems, large pumps, etc. In short, it is just one word: big. A few years ago, we sold our pots and iron to build an extreme manufacturing base in Haidong, which was aimed at the manufacturing of these large equipment. Now the extreme manufacturing base has been basically completed, and it is no problem to build these large equipment."

Feng Xiaochen said this, but in fact, expanding the scale of equipment does not simply make things bigger. In the process of large-scale equipment, many new technical problems will arise, which can be ignored in small equipment.

For example, an average-decompression distillation device with an annual output of 20 million tons requires a 300-megawatt atmospheric furnace. It is not difficult to manufacture such a large atmospheric furnace, but it involves a series of new problems: the medium flow of large furnaces is large, how to reduce bias flow and balance operations involves the distribution of flow; the furnace space of large furnaces is larger, how to ensure uniform heating of each part involves the overall structural design of the heating furnace; the manufacturing and installation of large-diameter thick-walled fireplace pipes and heat-resistant steel pipe frames are also new issues.

However, after more than ten years of digestion and absorption of imported technologies from abroad, the large-scale equipment companies and research institutes in the equipment company system have cultivated a large number of excellent technical talents and accumulated a lot of experience in large-scale equipment research and development. Feng Xiaochen is fully sure that the technical difficulties mentioned above can be solved quickly.

Advanced industrial technology is actually not mysterious. Many technologies have their own research methods. People who are not in the art may feel that they have no idea how to start, but for those who are in the art, the research ideas are very clear. As long as you invest funds, equipment, and talents in this direction, you can always make it. The national equipment manufacturing field is now full of talents, and all you lack is opportunities and funds.

Thinking of the funds, Feng Xiaochen put away his relaxed expression just now and said to Wang Zhenbin: "Old Wang, there is one thing I need to declare in advance that we can obtain 20 million tons of refining equipment, but in terms of funds, the Development and Planning Commission must guarantee it. You just said that a 20 million tons device alone is worth 3 billion US dollars, that is, 25 billion RMB. If you can't afford so much money, I can't make the equipment for you."

"It's so expensive?" Xu Zhenbo said astonished.

Wang Zhenbin smiled bitterly and said, "This is just an investment in equipment. Civil engineering and other supporting facilities can be worth tens of billions. However, Director Xu, think about it, a ton of refined oil costs more than 2,000 yuan per ton, with an annual output of 20 million tons of refined oil. The annual output value is 50 billion, and the profit and tax is about 10 billion. Building an oil refinery can make it back in three or four years. Isn't such an investment worth it?"

"So that's it." Xu Zhenbo understood, and at the same time understood why the Development and Planning Commission had to spend a lot of effort to protect the refined oil market. This is really a fat industry.

Feng Xiaochen said: "We are a little optimistic about recovering investment in three or four years. The profits of refined oil are now large because of the relevant tax protection. If Director Xu and his team cancelled the tariff protection, the domestic refined oil prices will have to drop sharply with the international market conditions, and the profit level will not be that high at that time. However, an internal rate of return of more than 10% should still be guaranteed. Such a high profit is worth fighting."

"Xiao Feng is right." Wang Zhenbin nodded and said, "However, the construction cycle of a refinery will take four or five years. For our Development Planning Commission, the pressure on funds is also very great. Xiao Feng asked me to guarantee the funds just now. To be honest, I really don't have this confidence."

Feng Xiaochen spread his hands and said with a smile: "I've been making trouble for a long time. Do you have no money? Why don't you say anything if you don't have money? Director Xu, let's go. There is a shabu-sauce restaurant in Yuetan that tastes good. Why don't we go and try it now."

"You little Feng!" Wang Zhenbin smiled at Feng Xiaochen's laziness. He pointed at Feng Xiaochen and scolded: "I didn't say I won't do it. Funds are under pressure, which is inevitable. Our fixed-trade investment in the name of the state-owned economy is 1.500 billion a year, which seems to be a lot, but there is not much to allocate it to various departments. You said that three new refineries of 20 million tons are built, and equipment and civil engineering are more than 100 billion. Of course, we have to coordinate, and where can we invest just by investing."

Feng Xiaochen said: "Old Wang, you forgot the first point I just said. If the country is determined to forcibly eliminate small refining enterprises, local governments will be forced to invest in large refineries. Now the central government has no money, and local governments have money. If it really doesn't work, they can mobilize private capital to allow private capital to participate in shares. What does it mean to make up a mere 100 billion yuan?"

"It's just 100 billion..." Wang Zhenbin moaned while covering his cheeks. When chatting with this junior brother, he often felt like he wanted to have a toothache.

"Let the local government pay money is also among our considerations. As for private capital, it is too difficult to raise tens of billions of dollars. I know that you, Xiao Feng, and the private capitalists in Haidong are getting closer. Do you have a way to raise tens of billions of dollars to build an oil refinery?" Wang Zhenbin retorted.

"Is this what you said?" Feng Xiaochen stared at Wang Zhenbin and said.

"What did I say?" Wang Zhenbin was stunned.

"You said I would contact the private capitalists in Haidong and everyone would raise money to build a large oil refinery."
Chapter completed!