Shenghong Petrochemical's base opening for a total capacity of 700,000 tons of EVA

The EVA projects include three 200,000 ton/year tubular EVA plants, one 100,000 ton/year high-end hot melt EVA plant, and one 50,000 ton/year high-end copolymer EnBA plant.

After the completion of the project, Shenghong will achieve the strategic goal of "million tons of EVA" and become the world's largest high-end EVA supply base. Among them, the global market share of photovoltaic EVA is expected to increase to 40%-45%, ranking first in the world, and the product can significantly replace imported EVA products.

Due to the high barriers to the production of photovoltaic EVA, long expansion cycle, conversion restrictions, the domestic output of stable photovoltaic grade EVA enterprises are few. According to the China Photovoltaic Industry Association statistics, the first half of this year, the domestic photovoltaic power generation installed 30.88GW, an increase of 137.4%, this data has exceeded the first ten months of last year and the installed capacity. According to the installed plan is expected to achieve 85GW ~ 100GW, corresponding to the demand for photovoltaic grade EVA about 1 million tons, import dependence of more than 60%. In the global market, it is expected that new installations this year will also reach 205-250GW.

--PO/SM and polyol projects

The PO/SM and polyol project, which is under construction, will make comprehensive use of ethylene, propylene and benzene from Shenghong's refining and chemical integration project for deep processing and further production of polyether polyol (PPG) and polymer polyol (POP) products, which will eventually extend the industrial chain to polyurethane.

At present, the country is vigorously promoting water-based coatings, implementing new policies on building energy conservation and other measures. With the development of the automotive, construction and furniture industries, the market demand for polyurethane will continue to increase in the future. The completion of Shenghong's PO/SM plant will further fill the gap in the supply of domestic polyurethane raw materials, inject new vitality into the polyurethane industry and enable it to take an active position in the competition with its foreign counterparts.

It is worth emphasizing that, compared with the traditional process, Shenghong's PO/SM co-production (co-oxidation) plant, which is of world advanced level, has low energy consumption and high maturity and reliability, and will significantly improve the overall economic efficiency and competitiveness of the project.

--Market Potential of EVA Photovoltaic Materials

The world's major producers of EVA resin are ExxonMobil, Hanwha Total, Formosa Plastics, Searborn, LG Chem, Yangzi-BASF, Sumitomo, etc.

Asian Chemical Consulting data show that in 2021, domestic EVA resin imports reached 1.117 million tons. EVA resin imports mainly from South Korea, Thailand, Saudi Arabia, Singapore, Taiwan and other countries and regions. In addition, a small amount of imports also from Japan, Belgium, Canada, the United States, Brazil and other countries. 2021, domestic EVA resin production reached 1.008 million tons, imports reached 1.117 million tons, exports 71,000 tons, apparent consumption reached 2.054 million tons. As a number of EVA production enterprises come into operation in 2021, the domestic EVA resin self-sufficiency rate from 40% in 2020 to 49% in 2021.

In recent years, the rapid development of the domestic photovoltaic industry, greatly stimulated the solar cell adhesive film industry investment enthusiasm. China has taken an absolute advantage in PV film shipments.