With an investment of 17.6 billion yuan, Wanhua Chemical plans to build ethylene and downstream projects

Recently, Wanhua Chemical Group Co., Ltd. issued the announcement of foreign investment. The company plans to invest 17.6 billion yuan to construct 1.2 million tons/year ethylene and downstream high-end polyolefin projects, in order to realize the industrialization of independently developed high-end polyolefin elastomer (POE), differentiated special materials and other high-end polyolefin products.

According to the announcement, the downstream high-end products of Chinese ethylene industry are heavily dependent on imports, and high-end polyolefin products such as POE and differentiated special materials are 100% dependent on imports. Wanhua Chemical after years of independent technology development, has fully mastered the relevant technology. The company plans to implement the ethylene Phase II project in Yantai Industrial Park and construct 1.2 million tons/year ethylene and downstream high-end polyolefin project, which will form efficient synergy with the company's existing propane dehydrogenation (PDH) integration project and ethylene phase I project.

According to the plan, the second phase of the project covers an area of about 1215 mu, The main construction of 1.2 million tons/year ethylene cracking unit, 250,000 tons/year low density polyethylene (LDPE) unit, 2× 200,000 tons/year POE unit, 200,000 tons/year butadiene unit, 550,000 tons/year cracking gasoline hydrogenation unit (including 30,000 tons/year styrene extraction), 400,000 tons/year aromatics extraction unit and supporting auxiliary engineering and public facilities. The project has been approved by the Shandong Provincial Development and Reform Commission and is expected to begin production in October 2024.

Wanhua Chemical said the construction of the project will help the company strengthen the polyolefin industry chain and fill the gap in domestic high-end polyolefin products. The project uses ethane and naphtha as raw materials. The diversification of raw materials will further avoid the risk of market fluctuations and improve the cost competitiveness of chemicals in the park. At the same time, it can provide upstream raw materials for the existing polyurethane sector and fine chemicals sector, extend the industrial chain, and improve the market competitiveness of the company's high-end fine chemicals. In addition, the project will also improve economic efficiency and achieve a significant reduction in carbon emissions through advanced energy optimization and integration in the plant, waste heat recovery and comprehensive utilization.