The global market share will reach 34%! Wanhua firmly holds the right to speak in MDI!

On August 21, Wanhua Fujian solemnly held the groundbreaking ceremony for the installation of large-scale equipment for the MDI integration project. This means that the Wanhua Fujian 400,000-ton/year MDI project will be completed in September next year and is expected to produce qualified MDI by the end of 2022. product. In addition, the first phase of the Fujian MDI integration project is also equipped with a 55,000 tons/year methanol device and a 100,000 tons/year hydrochloric acid electrolysis device; the second phase of the project is equipped with a 360,000 tons/year aniline device and 480,000 tons/year nitrate. Base benzene plant, 270,000 tons/year dilute nitric acid plant.

In addition to MDI, Wanhua's Fujian base also has an orderly layout of other products.

1. Wanhua Fujian’s 800,000-ton/year PVC project has been publicized for the second time, with a total investment of 4.632 billion yuan. The construction period is 6 years. The first and second phases will build 400,000-ton/year VCM and PVC installations and supporting facilities. . The main purpose of this project is to digest the by-product hydrogen chloride in the MDI/TDI production process and improve the comprehensive utilization of resources.

2. The environmental assessment of Wanhua Fujian's 250,000-ton TDI project has been publicized for the second time, with a total investment of 1.927 billion yuan and a construction period of 2 years. It is expected to be put into operation in the first half of 2023. After the completion of the project, Wanhua Chemical’s TDI production capacity will further expand, with obvious scale advantages.

The West District of Wanhua Fujian Industrial Park will rely on Jiangyin New Chemical Materials Special Zone, make use of good world-class ports and supporting industrial chain clusters. After completion, it will form 1.6 million tons/year MDI, 250,000 tons/year TDI, and 800,000 tons/year. The annual production capacity of PVC and 1 million tons/year of caustic soda radiates the markets of South China and Southeast Asia. Wanhua Fujian base will also become the company's third largest production base after Yantai and Ningbo. Its layout fully reflects Wanhua Chemical's development ideas of integration, parkization, scale, and refinement. The production cost will be comparable to that of Yantai and Ningbo bases. It has strong competitiveness and will provide an important driving force for Wanhua's future growth.

In addition to the newly built MDI in Fujian Industrial Park, Wanhua's MDI projects in Yantai Industrial Park and Ningbo Industrial Park are also deploying technological transformation and expansion:

Yantai Industrial Park:

MDI has been expanded to 1.1 million tons/year

Located in Lingang Industrial Zone, Xigang District, Yantai Port, it includes an annual output of 1.1 million tons/year of isocyanate (MDI), 300,000 tons/year of toluene diisocyanate (TDI) and its supporting equipment and public engineering systems. It has a very complete propylene and The derivative manufacturing industry chain has 750,000 tons/year of propylene, 360,000 tons/year of butyl acrylate and 260,000 tons/year of propylene oxide.

On February 25 this year, the MDI plant in Yantai Industrial Park completed the technical transformation of its capacity expansion. Through technological transformation, Wanhua Chemical Yantai Industrial Park's MDI plant has been expanded from the original capacity of 600,000 tons/year to 1.1 million tons/year.

The polyurethane industry chain integration-ethylene project in Yantai Industrial Park will be constructed in two phases. The first phase has been put into production, building a basic platform for the olefin industry; the second phase of the project includes two major categories: one million tons of polyurethane industrial chain integration-ethylene project and industrial chain high value-added extension projects.

Ningbo Industrial Park:

MDI production capacity will reach 1.8 million tons/year

Wanhua Industrial Park is dominated by Wanhua Chemical (Ningbo) Co., Ltd., and is jointly invested and constructed with upstream and downstream partners such as South Korea's Hanwha Chemical, Germany's Linde Gas, and public engineering service providers. The park covers an area of about 2 square kilometers, and the current total investment has reached 20.6 billion yuan. It is an MDI industrial park with the largest MDI production scale, the most reasonable resource allocation, the most advanced technology, the lowest cost, and the strongest competitiveness in a single base in the world.

At the beginning of May 2021, Wanhua Chemical (Ningbo) Co., Ltd.'s MDI/HDI technological transformation and capacity expansion integrated project and 1.8 million tons/year MDI technological transformation project environmental impact assessment information was disclosed.

The project investment is 941 million yuan, mainly for the expansion and transformation of the existing MDI device, and finally the production capacity of the first phase of the MDI device will be expanded from the current 400,000 tons/year to 600,000 tons/year, and the second phase of the MDI device capacity will be expanded from The existing 800,000 tons/year expansion to 1.2 million tons/year, the total plant has 1.8 million tons/year MDI production capacity, which is twice the previous market expectation for Ningbo's 300,000 tons expansion.

Wanhua MDI will account for 1/3 of the world in 2024

The development of the global MDI industry has a history of more than 50 years, and the technical threshold is very high. Only a few companies such as Covestro, BASF, Huntsman and Wanhua Chemical have mastered its production technology in the world. In terms of production capacity, Wanhua Chemical, BASF, and Covestro are the three most important MDI manufacturers in the world.

According to statistics and information disclosed on the company's official website, the global MDI production capacity in 2020 will be approximately 9.24 million tons. Table 1 shows global MDI production capacity statistics.

In the next 3-5 years, global MDI will hardly have new entrants, and Wanhua’s global market share of MDI will continue to increase, the industry’s voice will continue to increase, and market pricing capabilities will be further enhanced. From 2019 to 2020, Wanhua’s global market share will be about 25%; and the current planned MDI capacity of Wanhua includes Wanhua Ningbo + Yantai, a total of 1.1 million tons of capacity expansion, 400,000 tons in Fujian, and 400,000 tons in the United States, even if the United States is not considered. 10,000 tons of MDI projects, Wanhua’s global MDI share will reach about 34% by 2024.