June 16, 2025 –
Wanhua Chemical Accelerates High-End PC Strategy with Major PDMS Expansion
AsiaMB Exclusive – Wanhua Chemical has unveiled ambitious plans to more than triple its PDMS (polydimethylsiloxane) production capacity at its Yantai chemical complex, signaling a strategic push into premium polycarbonate markets. The 20,000-ton expansion will elevate Wanhua’s total PDMS output to 29,000 tons annually through two new production lines.
This organic silicon material plays a pivotal role in manufacturing advanced silicon copolymer PC – a specialized polycarbonate variant gaining traction in 5G infrastructure and medical technology applications. PDMS enhances critical material properties including flame retardancy and low-temperature flexibility, making it indispensable for high-performance engineering plastics.
“With this investment, we’re strengthening our vertical integration from raw materials to finished products,” a Wanhua spokesperson told AsiaMB. The move builds on the company’s 2022 breakthrough in high-silicon content (20%) copolymer PC production, which ended foreign dominance in this niche segment.
Industry analysts highlight several strategic implications:
• Positions Wanhua as China’s only fully integrated PC/PDMS producer
• Supports planned Fujian facility that will make Wanhua a global top-three PC player
• Addresses China’s 70% import dependency in specialty PC applications
• Aligns with growing demand from 5G, electric vehicle, and healthcare sectors
While conventional PC markets face oversupply concerns, Wanhua’s focus on differentiated products through silicon copolymer technology creates new value opportunities. The company currently operates China’s largest PC production base at 600,000 tons annually.
“Wanhua’s PDMS expansion represents more than capacity growth – it’s about controlling critical upstream supply for next-generation materials,” commented Dr. Michael Chen, AsiaMB’s senior polymer analyst. The development underscores China’s determined push into high-value chemical segments, with bio-based alternatives and sustainable processes emerging as the next competitive frontier.