Lianyungang Petrochemical Co., Ltd., a wholly-owned subsidiary of Satellite Chemical (002648), a leading domestic light hydrocarbon chemical company, continues to consolidate its core position in the industry thanks to its complete C2 industrial chain layout and strong production capacity. As a key piece in Satellite Chemical's strategic plan, Lianyungang Petrochemical is 100% owned by Satellite Chemical and serves as the core vehicle for its transition from C3 to C2 and the construction of a "C2+C3" dual-engine growth model.
Established in November 2017, Lianyungang Petrochemical is located in the Lianyungang Xuwei New Area National Petrochemical Industrial Base, with a total investment of approximately RMB 33.5 billion. It was fully completed and put into operation in 2022. Leveraging the resource advantages of its parent company, the company has built China's first ethane cracking to ethylene unit, forming core production capacities of 2.5 million tons/year of light hydrocarbon cracking, 1.35 million tons/year of polyethylene, and 2.19 million tons/year of ethylene oxide/ethylene glycol, with a total annual chemical output exceeding 8.5 million tons. Many of its production capacities rank first among single plants in China.
As Satellite Chemical's most important profit-contributing unit, Lianyungang Petrochemical achieved a total industrial output value of 28.4 billion yuan and profits and taxes of 7.7 billion yuan in 2024, accounting for more than 60% of the group's overall performance. Simultaneously, the two companies have deeply collaborated in areas such as technology research and development, raw material procurement, and market sales. The parent company coordinates global ethane/propane procurement and logistics scheduling, shares core process technologies, and has propelled Lianyungang Petrochemical to become a benchmark for China's green and low-carbon petrochemical industry, successively receiving honors such as National Green Factory and Jiangsu Province Green Leading Enterprise.
As a wholly-owned subsidiary of Satellite Chemical (002648), Lianyungang Petrochemical Co., Ltd. has been deeply integrated into the group's "integrated light hydrocarbon + high-end new materials" strategy since its establishment. It has grown from a major strategic project into the group's largest source of profit, building a core pattern of coordinated development between its "north and south dual bases."
At the equity level, Lianyungang Petrochemical is 100% controlled by Satellite Chemical through its wholly-owned platform, Jiaxing Satellite Industrial Development Co., Ltd. The legal representative and core management team are all dispatched by Satellite Chemical. Major decisions, fund allocation, and technology research and development are all under the vertical management of the group, and its financial statements are fully integrated into Satellite Chemical's consolidated financial statements.
Strategically, Lianyungang Petrochemical is a key lever for Satellite Chemical to break through the bottleneck of the C3 industry and enter the ethylene industry chain. Previously, Satellite Chemical, with its Jiaxing base as the core, focused on the C3 industrial chain (propane → propylene → acrylic acid and esters), ensuring stable cash flow. Lianyungang Petrochemical, on the other hand, focused on the C2 industrial chain (ethane → ethylene → polyethylene, ethylene glycol, and high-end new materials), forming a complementary raw material and synergistic product industrial loop with the Jiaxing base, completely breaking down the barriers of the entire "C2+C3" industrial chain.
In terms of capacity and performance, Lianyungang Petrochemical's core units operated at full capacity, contributing to Satellite Chemical's revenue of RMB 12.677 billion in the first quarter of 2026, a year-on-year increase of 2.82%. Currently, the company is accelerating the progress of its 260,000-ton/year aromatics co-processing project (expected to be put into operation in October 2026) and its RMB 7.82 billion high-end new materials project (expected to be put into operation in 2027). Upon completion, these projects will further solidify Satellite Chemical's leading position in the high-end polyolefin field and fill technological gaps in related domestic areas.
Industry insiders say that the deep partnership between Lianyungang Petrochemical and Satellite Chemical is not only a model of vertical integration of the industrial chain for private chemical enterprises, but also a microcosm of the transformation of China's petrochemical industry towards green and high-end development, and will continue to lead the industry's high-quality development in the future. In the future, Lianyungang Petrochemical will continue to rely on Satellite Chemical's financial and technological support to advance the construction of high-end new materials projects with a total investment of 8.85 billion yuan, focusing on key materials such as POE elastomers and α-olefins, and helping Satellite Chemical accelerate its transformation into a high-end new materials technology enterprise.
