Major Shift 7 Key Changes in Yuxin’s 2.2 Billion Light Hydrocarbon Project

On April 22, Yuxin Co., Ltd. (002986) announced major adjustments to its Phase I Light Hydrocarbon Utilization Project, signaling a strategic pivot in response to changing market and policy conditions.

The company will terminate construction of a 130,000-ton/year BDO unit and a 60,000-ton/year PBS plant. Instead, the focus shifts toward building a 200,000-ton/year isopropyl acetate and hydrogenation unit and a 300,000-ton/year ethyl acetate unit, leveraging technical modifications through the 500,000-ton/year acetate derivatives project. The updated facilities also include a 240,000-ton/year maleic anhydride unit and a 46,000-ton/year PTMEG unit, with all transformations funded by internal resources.

The decision stems from several market-driven realities. The PBS market, heavily reliant on government backing, has not scaled up sufficiently. Additionally, the BDO sector has seen a flood of new capacity—1.1 million tons/year between 2021 and 2024—leading to oversupply and a dramatic price crash from ¥30,000/ton to just ¥7,000/ton. BDO made via maleic anhydride hydrogenation also faces cost disadvantages compared to competing processes in Xinjiang and Inner Mongolia.

By pivoting toward acetate products, Yuxin is capitalizing on its deep expertise in esterification and hydrogenation. This move revitalizes existing BDO infrastructure, lowers retrofitting difficulty, enhances hydrogen utilization, and diversifies the product line with new outputs like isopropanol and ethanol, improving resilience against market cycles.

As for progress, the PTMEG unit was completed in May 2024, the maleic anhydride unit entered operation in April 2025, and the new acetate plants will proceed once approved by the board and shareholders.