Jinan, July 19th- For the seventh consecutive years, Shandong Energy Group is listed in the Fortune Global 500. On this 2018 list, the Group ranks 234th , 138 places higher than its last position of 372nd in 2017. The Group currently boasts operating income of 45.65 billion dollars.
The contributing factors for the rise include the picking up of coal market, the macro-managing policy of provincial government, especially the policy to straighten the production units in deficit, and the internal reform and innovation of the Group.
Since the beginning of last year, Shandong Energy Group has invested more than 6 billion yuan in equipment upgrades. At present, 32 automation and 20 intelligent coal mining faces have been built, and 34 mines have abolished night-time mining practice. In the past two years, 36 pairs of low-yielding mines have been closed, 15.48 million tons of inferior production capacity have been dropped, 68 so-called “zombie” subsidiaries were disposed of, and deficit decreased by 50.2% year-on-year. The Group also took the lead in implementing market-oriented debt-to-equity swaps, with 10.2 billion yuan put in place. The scale of funds was the largest and the cost lowest in Shandong province. The Group also vigorously promote the development of IGCC. Its 2 billion cubic meters coal-to-gas project in Yili, which is the largest single unit of this kind in the world, has successfully accomplished trial production.
Last year, the Group had seen its various operating indicators achieving the goal of the 13th Five-Year Plan three years ahead of schedule. Its operating income and total assets both exceeded 300 billion yuan, its total social contribution reached 62 billion yuan while paying 18.4 billion yuan of taxes.