On August 21, Wanhua Fujian held a grand opening ceremony for the installation of large-scale equipment for the MDI integration project. This means that Wanhua Fujian’s 400,000 tons/year MDI project will be completed in September next year and is expected to be put into production in 2022. Produce qualified MDI products. In addition, the first phase of the Fujian MDI integrated project is also equipped with a 55,000 tons/year methanol unit and a 100,000 tons/year hydrochloric acid electrolysis unit; the second phase of the project is equipped with a 360,000 tons/year aniline unit and a 480,000 tons/year nitrate unit. Base benzene plant and 270,000 tons/year dilute nitric acid plant.
In addition to MDI, Wanhua’s Fujian base also has other product layouts in progress.
1. The environmental impact assessment of Wanhua Fujian’s 800,000-ton PVC project with an annual output has been announced for the second time. The total investment is 4.632 billion yuan and the construction period is 6 years. The first and second phases will be constructed separately. 400,000 tons/year VCM and PVC equipment and supporting facilities. This project is mainly to digest the by-product hydrogen chloride in the MDI/TDI production process and improve the comprehensive utilization rate of resources.
2. The environmental impact assessment of Wanhua Fujian’s 250,000-ton TDI expansion project has been announced for the second time. The total investment is 1.927 billion yuan, the construction period is 2 years, and it is expected to be put into operation in the first half of 2023. After the completion of the project, Wanhua Chemical’s TDI production capacity will be further expanded, with obvious scale advantages.
The West Area of Wanhua Fujian Industrial Park will rely on Jiangyin Chemical New Materials Zone and make use of good world-class ports and supporting industrial chain clusters. Once completed, it will have an annual capacity of 1.6 million tons. The production capacity of MDI, 250,000 tons/year TDI, 800,000 tons/year PVC, and 1 million tons/year caustic soda radiates to the South China and Southeast Asian markets. Wanhua’s Fujian base will also become the company’s third largest production base after Yantai and Ningbo. Its layout fully embodies Wanhua Chemical’s development ideas of integration, park-based, large-scale and refined. The production cost will be comparable to that of Yantai and Ningbo bases, making it extremely competitive and providing an important driving force for Wanhua’s future growth.
In addition to the new MDI in Fujian Industrial Park, Wanhua’s MDI projects in Yantai Industrial Park and Ningbo Industrial Park are also planning for technological transformation and capacity expansion:
Yantai Industrial Park: MDI capacity has been expanded to 1.1 million tons/year
Located in West Port of Yantai Port The Lingang Industrial Zone in the district has an annual output of 1.1 million tons/year isocyanate (MDI), 300,000 tons/year toluene diisocyanate (TDI) and supporting equipment and public engineering systems. It has a very complete propylene and derivatives manufacturing industry. chain, with 750,000 tons/year propylene, 360,000 tons/year butyl acrylate and 260,000 tons/year propylene oxide, etc.
On February 25 this year, the technical transformation to expand the capacity of the MDI device in Yantai Industrial Park was completed. Through technological transformation, the MDI device of Wanhua Chemical Yantai Industrial Park has been expanded from the original production capacity of 600,000 tons/year to 1.1 million tons/year.
The polyurethane industry chain integration-ethylene project in Yantai Industrial Park will be constructed in two phases. The first phase has been put into production, establishing a basic platform for the olefin industry; the second phase projects include two major categories: million-ton polyurethane industry chain integration-ethylene projects and industrial chain high value-added extension projects.
Ningbo Industrial Park: MDI production capacity will reach 1.8 million tons/year
Wanhua Industrial Park is dominated by Wanhua Chemical (Ningbo) Co., Ltd., and is jointly invested and constructed with upstream and downstream partners such as South Korea’s Hanwha Chemical and Germany’s Linde Gas, as well as public engineering service providers. The park covers a total area of about 2 square kilometers, and the current total investment has reached 20.6 billion yuan. It is the MDI industrial park with the largest MDI production scale, the most reasonable resource allocation, the most advanced technology, the lowest cost and the strongest competitiveness in a single base in the world.
In early May 2021, Wanhua Chemical (Ningbo) Co., Ltd.’s MDI/HDI technical transformation and capacity expansion integrated project and 1.8 million tons/year MDI technical transformation project environmental impact assessment information public.
The investment amount of the project is 941 million yuan, which is mainly to expand the capacity of the existing MDI device. Eventually, the production capacity of the first-phase MDI device will be expanded from the existing 400,000 tons/year. to 600,000 tons/year. The production capacity of the second-phase MDI plant will be expanded from the existing 800,000 tons/year to 1.2 million tons/year. The total plant has an MDI production capacity of 1.8 million tons/year. This is the market’s previous response to Ningbo’s 30-year expansion Twice that expected.
Wanhua MDI will account for 1/3 of the world in 2024
The development of the global MDI industry has a history of more than 50 years, and the technical threshold is very high. Only a few companies in the world have mastered its production technology, such as Covestro, BASF, Huntsman, and Wanhua Chemical. In terms of production capacity, Wanhua Chemical, BASF, and Covestro are the three major MDI manufacturers in the world.
According to statistics and information disclosed on the official websites of various companies, global MDI production capacity in 2020 is approximately 9.24 million tons. Table 1 shows global MDI production capacity statistics.
Table 1 Production capacity distribution of global MDI manufacturers in 2020
Source: Huajing Intelligence Network, made public Data compilation
In the next 3-5 years, it will be difficult for new entrants to global MDI, but Wanhua MDI’s global market share will continue to increase, its industry voice will continue to increase, and its market pricing power will continue to increase. further enhanced. From 2019 to 2020, Wanhua’s global market share is about 25%; and Wanhua’s current planned MDI production capacity includes Wanhua Ningbo + Yantai’s total expansion of 1.1 million tons, Fujian’s 400,000 tons, and the United States’ 400,000 tons. Even if the United States’ 40 For 10,000-ton MDI projects, Wanhua’s global MDI share will reach about 34% by 2024. </p
