New IPDI Project Approved as Market Prices Surge

On March 30, 2025, Sinochem announced the approval of its isophorone diisocyanate (IPDI) project, with a production capacity of 21,000 tons planned in phases. Currently, the first phase has commenced production. This announcement comes on the heels of recent force majeure declarations from Evonik and Covestro, impacting IPDI and its derivatives.

As of March 31, domestic IPDI market prices surged due to supply disruptions from Covestro. The East China market reported prices at 38,500 yuan/ton, a 2.67% increase week-on-week and a 1.32% rise month-on-month. IPDI, a cyclic diisocyanate used in various industries including plastics, adhesives, and pharmaceuticals, has only five major producers worldwide, with a total capacity of about 140,000 tons.

Sinochem's IPDI project is part of a broader investment strategy that includes new energy materials and environmentally friendly products. The total investment for these projects is approximately 4.5 billion yuan, aiming to produce 103,000 tons of hexamethylene diisocyanate (HDI), 21,000 tons of IPDI, and other derivatives. The company has already launched products like HDI and IPDA, with promising feedback from clients.

Additionally, Sinochem is involved in several other projects, including a liquid methionine project, a Tianjin nylon new materials project, and a PPS project. The liquid methionine project, a joint venture with Sinopec, will have a capacity of 180,000 tons/year and is nearing completion. The Tianjin project aims to produce 100,000 tons/year of hexanediamine and is currently in the approval stage.

Moreover, Sinochem is actively expanding its international presence, with products sold in over 100 countries and more than 50% of sales coming from overseas markets. The company is focusing on rapid market expansion and has established sales centers in regions like Europe, South America, and Southeast Asia.

Looking ahead, Sinochem expects significant growth in its nutrition segment, projecting a net profit of 5.8 to 6.2 billion yuan for 2024, reflecting an increase of 114.48% to 129.27% year-on-year.