Start from this year, facing complicated situation of shrink market demand, periodically supply/demand conflict and increasingly severe competition as well as continuous loss challenge, FREP closely focused on the objective of Management & Profit Simultaneous Improvement Activity and 5KFA priorities, and started with concept change, found potential in gaps, pursued motivation in passive situation, brought all positive factors into play and adopted a series of measures with positive results achieved.

With the successful completion of last year’s TR/Revamp integrated event, the integration, large-scale and intensiveness characteristic of refining & petrochemical brought us more challenge in operation and management, how to ensure stable, reliable and operation is now the source of profitability. Thus, all Departments and Business Teams had established the mindset of “Safety and reliability will bring the maximized profit”, and reinforced the management/ accountability of unplanned shutdown, operation abnormal cases, operation fluctuation and flaring, continued to improve operation/ quality stable rate, and truly made all units’ to operate stably and contribute profit.

Process flow optimization is the core of our management and profit improvement. To capture the initiative in the fast changing market, FREP established MPISC in the beginning of April with bi-weekly meeting to analyze/ predict market trend and margin constrains, and adopted timely measures to make more scientifically decisions. Meanwhile, we persisted in cross-functional cooperation focusing on business and effectively improved executive force. Since April, we have achieved remarkable results with the operation of FCC expander, the optimization of operation strategy of SC and new AEU, energy structure optimization and steam consumption reduction.

As an important component of the detailed management comprehensively improvement, to improve expense management for cost reduction is also one of our focus areas recently and has made certain accomplishment. We are trying to reduce operation expenses in every possible approach by breaking down cost components, defining responsibility, improving methods and quantizing assessment. In addition, we established the mindset of thrift firmly, budget strictly and control business travel, meeting, vehicle using and other non-operational expenses by periodically methods through all management levels of the company.

  All Departments/ BTs/ whole organization are accountable to the accountable implementation/ execution of FREP Business Plan, profit and cost indicator, process flow and cost reduction & margin improvement activities. All levels of management are expected to set examples, demonstrate leadership and executive force timely with all efforts. Success is made of 10% of work planning and 90% of execution. In the difficult situation, FREP employees have been demonstrating their spirit of cooperation/ overcoming difficulties/ selfless dedication; people’s responsibility and execution efficiency has been obviously improved. More and more employees start to care for FREP’s profitability and performance and take initiative to work; the academic atmosphere has become stronger with full engagement and competition, which provide power and guarantee to management and profit improvement.