Wanhua Chemical Cuts 2025 Investment Plan by 35 Percent Focus Shifts to Batteries and Green Materials

Wanhua Chemical revealed in its May 8 shareholder meeting documents that its 2025 total planned investment will drop to RMB 29.43 billion, down nearly 35% from 2024’s actual investment of RMB 42.83 billion. The focus is shifting from large-scale expansion to targeted innovation and internationalization, with battery materials and specialty chemicals taking center stage.

In 2024, Wanhua completed RMB 40.15 billion in project investments, led by RMB 14.73 billion in its petrochemical chain and RMB 8.16 billion in polyurethane projects. Investments in new materials and public utilities followed closely, totaling RMB 3.62 billion and RMB 7.1 billion respectively.

For 2025, the company plans to allocate RMB 25.24 billion for project construction, emphasizing strategic areas. Key initiatives include:

• RMB 6.49 billion for polyurethane expansion, particularly integrated MDI capacity upgrades.

• RMB 7.67 billion for petrochemical diversification, notably the second phase of a 1 million-ton-per-year ethylene project.

• RMB 4.64 billion for fine chemicals, supporting the industrialization of green additives, vanillin, and nutritional ingredients.

• RMB 2.16 billion for emerging materials, targeting lithium iron phosphate (LFP), PVDF, and other battery technologies.

   

The company also completed RMB 2.68 billion in equity investments in 2024, and intends to increase that to RMB 4.19 billion in 2025, with a clear push toward new materials and overseas partnerships. By leveraging its integrated park model, Wanhua aims to build tighter links with upstream and downstream collaborators across its value chain.

Despite the reduced capital expenditure, Wanhua is not slowing down—rather, it’s shifting into a more agile phase, balancing industrial depth with forward-looking diversification, especially in clean energy and advanced materials.