November 13, 2024 – Sinopec’s 14th Construction Corporation Successfully Delivers Expanded TPU Phase III-2 Project in Yantai
A significant milestone has been achieved in China’s TPU industry with the successful mechanical completion of the expanded TPU Phase III-2 project in Yantai, undertaken by Sinopec’s 14th Construction Corporation. This expansion project boasts a newly added TPU production line, which, with its immense single-line capacity, has now become a global leader in TPU production.
Last November, Wanhua Chemical released the pre-approval information for the environmental impact report of its expanded project for the annual production of 120,000 tons of thermoplastic polyurethane elastomers (TPU), marking a second-phase change in its third-phase project. This adjustment maintained the same overall capacity but introduced significant modifications to raw materials and production lines. According to AsiaMB, the project will now feature three new polyol production lines and two TPU production lines, each with an annual capacity of 40,000 tons of polyester polyols and 50,000 tons of TPU, respectively.
The construction of TPU facilities in the Wanhua Chemical Yantai Industrial Park has been ambitious, spanning three phases and having completed all necessary environmental assessment procedures. With a total annual capacity of 210,000 tons, the park includes a phase one project with a 60,000-ton polyol plant and a 60,000-ton TPU plant; a phase two project with a 25,000-ton polyol plant and a 30,000-ton TPU plant; and an expansive phase three project with a 90,000-ton polyol plant and a 120,000-ton TPU plant.
TPU, or thermoplastic polyurethane elastomer, is a novel eco-friendly polymer material renowned for its unique dual properties of rubber and plastic, offering exceptional strength, toughness, abrasion resistance, and oil resistance, making it highly sought-after in the market. Its upstream supply chain encompasses basic energy sources like coal and crude oil, as well as various chemical raw materials. The midstream involves TPU production and processing, while downstream applications are widespread, spanning melt-spun spandex, PU synthetic leather, footwear materials, wire and cable industries, and more.
Notably, China has emerged as a global powerhouse in TPU production and consumption. Despite recent overcapacity issues, the market for high-performance TPU products, such as cable protection, automotive anti-lock braking systems, and wind turbine cables, remains dominated by international giants like BASF and Covestro.
Amidst fierce market competition, numerous TPU manufacturers are intensifying their strategies. Besides Wanhua Chemical, companies like BASF, Covestro, Lubrizol, Merrell New Materials, and Huafeng Chemical are also investing heavily in technological research and development and capacity expansion. For instance, BASF’s second TPU production unit at its integrated base in Zhanjiang has successfully commenced operations, becoming the world’s largest single TPU production facility. Additionally, Covestro has established a new TPU Asia-Pacific Application Development Center in Guangzhou, China, and is constructing its largest TPU plant in Zhuhai, with an anticipated annual capacity of 120,000 tons upon completion in 2033.