August 02, 2024 – Wanhua Chemical Group (Yantai) Olefins Co., Ltd. has recently been established, marking another significant strategic move by the group in the chemical industry. With Bai Haitao as its legal representative and a registered capital of 1.1 billion yuan, the new company’s business scope encompasses the sale of refinery and chemical production equipment, building materials, machinery, as well as novel catalytic materials and auxiliaries, spanning multiple sectors. According to corporate records, the company is wholly owned by Wanhua Chemical, highlighting the group’s further entrenchment in the olefin industry.
Notably, Wanhua Chemical’s ambitions in the olefin sector extend beyond this. On July 23rd, Wanhua Chemical and its subsidiary Wanrong New Materials signed an agreement with an investment consortium consisting of Abu Dhabi National Oil Company, Borouge, and Borealis to jointly advance the feasibility study for a 1.6 million tons/year special polyolefin project. This move is poised to significantly enhance Wanhua Chemical’s influence in the global polyolefin market.
In high-end polyolefins, Wanhua Chemical’s布局 is equally compelling. The company has ventured into COC/COP (cyclic olefin copolymers/polymers), XLPE (cross-linked polyethylene), POE, α-olefins, and more. Notably, its 200,000 tons/year POE project successfully commenced operations on June 29th this year and achieved its first batch delivery on July 10th, pioneering the localization of high-end polyolefin POE and breaking foreign technology monopolies.
According to insights from the Color Masterbatch Industry Network, polyolefins currently represent the largest consumed plastic category globally, accounting for approximately half of all plastics. However, there is a significant supply gap between China’s production and demand for high-end polyolefins. With the sustained growth of domestic demand, the high-end polyolefin market is rapidly expanding. Besides Wanhua Chemical, companies like Satellite Chemical and Oriental Shenghong are also actively deploying in the high-end polyolefin industry, investing in related projects.
Backed by national policies, China’s localization process for high-end polyolefins is accelerating. Despite facing dual challenges of technological barriers and inadequate capacity, with continuous technological breakthroughs by enterprises and ongoing policy support, China’s high-end polyolefin industry is expected to gradually achieve self-sufficiency and reduce dependence on foreign sources.