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    Home > Coatings News > Paints and Coatings Market > Big things happen! Wanhua chemical and Fujian Petrochemical work together to further monopolize the new MDI capacity and TDI market in China

    Big things happen! Wanhua chemical and Fujian Petrochemical work together to further monopolize the new MDI capacity and TDI market in China

    • Last Update: 2020-03-04
    • Source: Internet
    • Author: User
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    On March 4, Wanhua chemical issued a foreign investment announcement that Wanhua Chemical Group Co., Ltd and Fujian Petrochemical Group Co., Ltd (hereinafter referred to as "Fujian Petrochemical") established Wanhua chemical (Fujian) Co., Ltd (hereinafter referred to as "Wanhua Fujian" or "joint venture") in accordance with the shareholding ratio of 80%: 20% The joint venture company will acquire 64% equity of Fujian kangnair Polyurethane Co., Ltd (hereinafter referred to as "Fujian kangnair") at zero price and construct 400000 T / a MDI and aniline supporting projects; the joint venture company will acquire TDI devices and direct supporting devices of Fujian southeast Electric Chemical Co., Ltd., expand TDI capacity to 250000 T / A, construct 400000 T / a PVC project and continue to build large-scale coal gasification Project In addition, Wanhua Chemical Group Co., Ltd acquired 49% equity of Fujian southeast Electric Chemical Co., Ltd., mainly engaged in chlor alkali and thermoelectricity business, providing raw materials and utilities for MDI and TDI projects The purchase price is subject to the appraisal value Industry analysts believe that Wanhua chemical will further monopolize new MDI production capacity in China Fujian kangnair Polyurethane Co., Ltd is the main body of the 400000 ton MDI project of Fujian kangnair, with a total investment of 6.6 billion yuan In the first phase, 400000 ton MDI project, 55000 ton formaldehyde / year project and 100000 ton hydrogen chloride treatment project will be constructed; in the second phase, 480000 ton nitrobenzene, 360000 ton aniline and 27 million ton aniline / year will be constructed Ten thousand tons / year nitric acid and related supporting facilities are expected to be put into operation in the second half of 2021, which will also be the second MDI construction enterprise in China besides Wanhua chemical The company and Fujian Petrochemical Co., Ltd jointly set up a joint venture company and transferred 64% of the equity of Fujian kangnair at zero price, which further monopolized the new production capacity of domestic MDI, further consolidated the core moat of domestic MDI technology, and realized the layout of Wanhua chemical's production base in Southeast China In addition, Wanhua chemical further monopolized the domestic TDI market At the same time, Wanhua Fujian will increase TDI from the current 100000 t / A to 250000 T / A, build 400000 T / a PVC, continue to build large-scale coal gasification projects and other projects Southeast electrification of the joint stock company will expand caustic soda production capacity, from the current 120000 T / A and 300000 t / A under construction to 600000 T / A The company signed an equity transfer agreement with Fujian Petrochemical and Southeast electrification, that is, the company acquired 49% equity of southeast electrification (stripping TDI device and PVC assets) held by Fujian Petrochemical in cash Southeast electrification is mainly engaged in chlor alkali and thermal power business, providing raw materials and public engineering support for MDI and TDI projects According to the data of Zhuo Chuang information, at present, the domestic TDI capacity is 1.22 million tons, and Wanhua chemical and Southeast electric chemical have the capacity of 300000 tons and 100000 tons respectively This time, the company acquires and expands the TDI assets of southeast electric chemical, which will further monopolize the domestic TDI market After the completion of future expansion projects, the domestic market share will further increase to 40%, TDI The industry concentration will be greatly improved, and the leading position of domestic isocyanate industry will be consolidated Southwest Securities believes that the MDI market is expected to rise in the future Recently, affected by the epidemic situation, the domestic MDI market price is relatively weak At present, the price of Wanhua pm200 in Shandong and East China is about 129000-13100 yuan / ton, the foreign source in Shanghai is about 12300-12400 yuan / ton, and the price of pure MDI in East China is stable at 15500-15800 yuan / ton Affected by the epidemic situation, the MDI rectification plant in East caorei, Zhejiang Province was installed and shut down There is no prospect of resumption of production in a short period of time The load of most other domestic devices is about 40%, and the inventory of domestic manufacturers is generally high The recovery progress of downstream refrigerator freezer manufacturers has improved Pure MDI downstream sole stock solution, pulp and spandex manufacturers are mostly in Zhejiang, which are seriously affected, but they are expected to gradually improve in the future Therefore, the short-term MDI price probably bears great pressure, but the overall price drop space is limited, and it is judged that the MDI price is likely to rise significantly in the second quarter under the stimulation of demand concentration.
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