From "A Scattered Piece of Sand" to "Rebirth by Fire" - The "Transformation" of Fracturing Material Company

This is the first time I've been to Yanan Petroleum Fracturing Material Company for a few years, and I felt a bright light at the door: a clean and tidy factory, a red slogan "strive to build 15 billion square meters of atmospheric field" is very refreshing; the electronic screen in the lobby of the office building, ceramic sand production dynamics at a glance. Into the production line, whether it is firing workshop kiln turning red sand flow, or the warehouse neatly placed in the finished product, all show the prosperity of an enterprise ......

Four years ago, these scenes were completely unthinkable. At that time, the pressed material company was still stumbling in the deadlock of losing money and stopping production, but afterwards, the sesame seeds blossomed and the annual output value per capita reached 5 million yuan last year. From the verge of closure to a new rebirth, from a "scattered plate" to a "rebirth", this enterprise has drawn a remarkable upward arc in four years.

What exactly did they do right?

Rationalize the system and mechanism to activate a chess game

Located in the new materials gathering area of the Weinan Economic Development Zone, the company is a wholly-owned subsidiary of the Group. It was established in 2012 to produce ceramic sand for fracturing support in oil and gas fields.

"In the first few years, due to the high cost of raw materials, single product and unstable quality, our sales were passive for a long time and the market situation was difficult to open." Gao Rongsheng, secretary of the party branch and deputy general manager of the company, said.

In order to open up the situation as soon as possible, under the correct leadership of the group company and the strong support of the oil and gas exploration company, the new management team of the company insisted on synchronizing the integration and transfer with the resumption of production and reversal of losses, comprehensively coordinating, checking and supervising the transfer of people, property and management rights, the resumption of production lines and other work, and taking multiple measures to revitalize the assets and use of labor. After two months of intensive preparations, the company resumed production at the end of June 2019, with 129 days of continuous stable production and 18,200 tons of ceramic sand, with an average daily output of 120 tons, an increase of 47.64% compared with the daily output before the integration; in the same year, the company achieved an output value of 77,716,200 yuan and a profit of 120,800 yuan, and lifted its loss-making cap for many years.

In addition, the company has invested 1 million yuan and is working with Northwestern University to develop a low-concentration anti-salt fracturing fluid system, which will form its own patented technology.



While stabilizing production operations and continuously improving the technical content of its products, the company is also making every effort in cost control, with production costs decreasing year by year. In the first quarter of this year, with the support of the group company, the CNG natural gas supply station built with the assistance of Tongchuan Gas Company of Gas Group was put into operation, which saved 1.23 million yuan in natural gas costs in the first quarter of the ceramic sand production workshop alone, plus more than 700,000 yuan in production line renovation costs, as well as savings in cloth bags, lubricants and other purchases, resulting in a total saving of more than 2.02 million yuan.



After four years of unremitting struggle to attract external and internal expansion, the company has formed four pillar industries of fracturing proppant production and sales, drilling fluid material supply, fracturing fluid technical service, and comprehensive testing and inspection of entry materials, and the digital service is also remarkable, basically forming a "one sand, many industries" diversified business pattern. In 2022, the output value of the company will reach 393 million yuan, which is five times of 2019, and the average income of employees will be doubled compared with 2019, and the whole staff will be motivated to make progress, and the atmosphere of working and entrepreneurship will be increasingly strong.