PUWORLD (2013-2-28)—Yantai Wanhua announced to invest 2 billion Yuan on projects in south China, which includes establishing branch in Zhuhai, Guangdong specializing in producing and selling waterborne resin, modified MDI, composite polyurethane adhesive, polyether polyol. This movement of Yantai Wanhua marks the downward stretch of the industrial chain. Players have high expectations for south China market.
This project includes two phases. The first phase is invested with 700 million Yuan, including 100 ktpa waterborne resin unit and 50 ktpa modified MDI unit. It is heard that first phase program is to start in second half year of 2013 and start operation in 2015. The second phase program is to double resin and MDI capacity on the base of first phase and in the meanwhile to build a 50 ktpa systems unit. In addition, Yantai Wanhua will set up logistics and technical centers in south China to support the project.
As the only domestic manufacturer in China, Yantai Wanhua experienced fast-grow in the past ten years. Its capacity increases from 40 ktpa in 2000 to 1100 ktpa in 2012 with profits increases from 100 million Yuan to 1.85 billion Yuan in the meantime. The company has grown into a global leading manufacturer of MDI, possessing the third largest capacity.
According to analyst, after large expansion of MDI capacity, Wanhua is stretching to downstream gradually. South China is the major manufacturing and consuming base of synthetic leather and furniture. Thus the expansion in south China matches domestic demand.
In terms of price, MDI price has rebounded in early this year with MMDI priced at Rmb 21900/ton and PMDI at Rmb 19000/ton.
When Wanhua’s Ningbo-based facility finished technical reform, its MDI capacity will increase to 1100 ktpa, taking up 50% of domestic market share.
What’s more, 300 ktpa TDI, PO and acrylic ester integration projects are also under the company’s plan.
By Sarah (email@example.com)