Dongying is China's largest petroleum equipment manufacturing base and the city's output value of the petroleum equipment manufacturing industry has accounted for about one third of the country's total, officials said.

As a core area for the petrochemical industry, Dongying, a coastal city in East China's Shandong province has been working to perfect its petrochemical industrial chain.

The city has integrated and utilized global resources from projects, enterprises, funds and talents to build petroleum equipment manufacturing clusters in the high-tech zone and the economic and technological development zone, which now are home to 66.1 percent of the city's oil equipment enterprises above designated size.

"The industrial cluster is taking shape," said Jin Yongjun, vice-director of the economic development department in the city's high-tech zone. "The zone currently is home to more than 500 petroleum equipment enterprises and its products cover more than 1,500 varieties in eight categories."

Dongying is planning to build a full chain innovation system involving markets, enterprises, universities and research institutes to work on a number of key and controllable technologies and build leading global value chains.

Employees work at a petroleum equipment production line in Dongying, Shandong province. [Photo/Dongying Daily]

For example, Shandong Yongli Jinggong Petroleum Equipment has developed high-end oil-well pipes with the functions of high joint strength, strong gas tightness and high temperature resistance, which can be widely used in unconventional mining fields such as deep and ultra-deep wells. Kerui Petroleum & Gas has developed customized drilling machines which can work in high temperatures in the Sahara Desert.

In addition, the city has built an industrial park integrating high-end innovation resources at home and abroad, focusing on the R&D on and the application of key technologies. It has introduced 11 scientific research institutes such as the Unconventional Oil and Gas Percolation Laboratory of China University of Geosciences, gathered 14 high-level talent teams, incubated 68 enterprises, and obtained 231 patents for petroleum equipment technology innovation.

The city's petroleum equipment products and services are widely distributed in both domestic and international markets with exports to more than 70 oil producing countries and regions such as North and South America, the Middle East, Africa, Southeast Asia and Russia.

Kerui Group has set up branches, subsidiaries and offices in 57 countries and regions, and R&D centers and service centers in more than 30 countries. Its services cover all oil-producing countries involved in the Belt and Road Initiative. Deshi Energy Technology Group Co has developed sales, and engineering services in more than 10 countries in the Middle East, Asia, Africa and South America. 

Shengli Petroleum Equipment Co has established six wholly-owned subsidiaries in North and South America, Europe, Central Asia and other regions, and its products are sold to more than 60 countries and regions.

The booming development of cross-border e-commerce has further expanded its overseas market.

By September 2021, the cross-border ecommerce industrial park, which is established by OSell Group, one of China's major cross-border e-commerce platforms and Dongying government, had introduced 47 import and export enterprises and its export volume totaled 664 million yuan ($104.52 million).

Dongying also made a brand development plan, encouraging enterprises to expand international brands through transnational operation, strategic investment and other methods.