Project Construction of the Shenghong Chemical New Materials Project with a Total Investment of 21.6 Billion Yuan Is Over Half

The Shenghong Chemical New Materials Project has accelerated its construction pace since this year. So far, nearly half of the project has been completed. The entire underground part has been constructed. Nearly 5,000 workers are installing steel structures, equipment, and process pipelines. It is expected that by 60% of the total project volume will be completed by the end of the year.

It is reported that the project is divided into two parts: Hongjing and Hongwei. The construction content includes polyol, EVA, photovoltaic grade ethylene, vinyl acetate copolymer projects, etc. After the EVA project is fully put into operation, Shenghong's total production capacity will reach 1.05 million tons, ranking first in the world.

Shenghong's project has a total investment of 21.6 billion yuan and plans to build projects with an annual output of 700,000 tons of EVA, 50,000 tons/year of high-end polyolefins, PO/SM and polyols. After the project is fully completed, Shenghong will achieve the strategic goal of "million-ton EVA" and become the world's largest high-end EVA supply base. The global market share of photovoltaic-grade EVA ranks first in the world, providing a stable guarantee for the country's clean energy transformation.

In addition, the high-end hot melt adhesive grade EVA, 110KV ultra-clean LDPE cable material products and EnBA and its derivative products produced by the project will fill the domestic gap, provide support for the development of China's high-end polymer industry, and help China's development of electronic information, automobile manufacturing,  aerospace and other industries.

At the same time, the PO/SM and polyol project will comprehensively utilize the ethylene, propylene and benzene from the Shenghong Refining and Chemical Integration Project for deep processing to further produce polyether polyol (PPG) and polymer polyol (POP) products, which can ultimately extend the industrial chain to the field of polyurethane. After the completion of the project, it will further fill the supply gap of China's polyurethane raw materials, significantly improve the overall economic benefits and competitiveness.

According to the plan, the carbon five and carbon nine separation units are planned to be handed over in March 2024; the PO/SM project is planned to be handed over in August 2024; the first 200,000-ton EVA project is planned to be handed over in November 2024; other projects will be delivered gradually in the first half of 2025.