Wanhua Chemical Fujian MDI project start-up

On December 22, Wanhua Chemical Group Co.
, Ltd.
issued an announcement
.
The 400,000 tons/year diphenylmethane diisocyanate (MDI) plant of Wanhua Chemical (Fujian) Isocyanate Co.
, Ltd.
, a subsidiary of Wanhua Chemical, has been fully completed and produced qualified products
on December 22.

It is reported that Wanhua Chemical (Fujian) Co.
, Ltd.
is a joint venture between Wanhua Chemical and Fujian Petrochemical Group Co.
, Ltd.
in March 2021 according to the shareholding ratio of 80% and 20
%.
The company has built 400,000 tons/year MDI and aniline supporting projects, including the first phase of 400,000 tons/year MDI plant, the second phase of the construction of 480,000 tons/year nitrobenzene and 360,000 tons/year aniline plant
.
The first phase of the MDI plant was piled in December 2020, large-scale equipment installation was carried out on August 21, 2021, and officially put into operation
on December 22, 2022.

At present, Wanhua Chemical is the only enterprise in China with independent intellectual property rights of MDI, TDI and ADI's full range of isocyanate manufacturing technologies, covering four major industrial clusters
of polyurethane, petrochemicals, fine chemicals and emerging materials.
Wanhua Chemical said that the commissioning of the Fujian project will further optimize the company's MDI industrial layout and enhance the competitiveness of the global industry
.

In addition, in 2021, Wanhua Chemical completed the technical transformation and expansion of Yantai MDI plant by 1.
1 million tons/year, increasing the company's MDI production capacity to 2.
65 million tons, accounting for nearly 30% of the global market share, making it the world's largest MDI producer
.
In December 2022, Fujian Fuqing 400,000 tons/year MDI project was put into operation
.
At present, Wanhua Chemical has a MDI production capacity of 3.
05 million tons/year, which is 1.
1 million tons/year in Yantai, Shandong, 1.
2 million tons/year in Ningbo, Zhejiang, 400,000 tons/year in Fuqing, Fujian, and 350,000 tons/year in Hungary
.

At present, Wanhua has developed the latest "sixth-generation +" MDI technology, and is carrying out technical transformation of the existing MDI device in Ningbo base, so that the total production capacity of MDI equipment is increased to 1.
8 million tons/year, of which the first phase is expanded from 400,000 tons/year to 600,000 tons/year, and the second phase is expanded from 800,000 tons/year to 1.
2 million tons/year, and after the MDI project of Ningbo base is put into operation, the total MDI production capacity of Wanhua Chemical will reach 3.
65 million tons/year
.

CICC expects that in addition to Wanhua Chemical, only Kumho Mitsui and BASF will have a small amount of MDI expansion capacity in the next few years, and the new global MDI production capacity will continue to be concentrated in Wanhua Chemical, and it is expected that Wanhua MDI's global market share will continue to increase, and its leading position will be strengthened
again.
Wanhua Chemical's MDI capacity release basically matches
global demand growth.
With the gradual recovery of the domestic economy, it is expected that domestic MDI demand is expected to gradually improve, which will drive the gradual recovery of MDI prices and earnings
.