Wanhua Chemical invested $2.4 billion in a new joint venture company

On March 24, 2021, Wanhua Chemical announced that the company and Fujian Petrochemical intended to establish a joint venture company, Wanhua Chemical (Fujian) Co. Wanhua Chemical contributed RMB2.4 billion in cash, accounting for 80% of the registered capital; Fujian Petrochemical contributed RMB600 million in relevant assets, accounting for 20% of the registered capital.

According to the joint venture agreement signed by both parties, the joint venture company will take 64% equity interest in Fujian Conair at zero price and construct 400,000 tons/year MDI and aniline ancillary projects etc. through Fujian Conair.

Ltd. is mainly responsible for the construction of TDI, PVC, syngas and supporting air separation, liquid ammonia and aniline plants and terminals; Wanhua Chemical (Fujian) Co., Ltd. and the employee shareholding company Ningbo Zhongtao Investment Co., Ltd. and Fujian Yitong Investment Co., Ltd. hold the former Fujian Conair Isocyanate Co., Ltd. in the proportion of 64%, 20% and 16% equity respectively, which will be renamed as Wanhua Chemical (Fujian) Isocyanate Co., Ltd. after the completion of the acquisition, mainly responsible for the construction of MDI main plant and some supporting public works.

In addition, according to the company's planning, the petrochemical industry chain will be planned in the East Zone of Fujian Jiangyin Port City Economic Zone in the future, and the preliminary planning of PDH propane dehydrogenation to propylene and propylene downstream industry chain, using the petrochemical resources in the East Zone can form the raw material source of the West Zone project, realizing the interconnection between the East Zone and the West Zone, and the raw materials in the East and West Zones will be supplied upstream and downstream to each other, sharing the infrastructure facilities and promoting the improvement of the maximum benefit of the park.