The latest progress of Yongrong and Wanhua PDH projects

——Progress of Fujian Yongrong PDH project

On June 24, 2022, Fujian Putian City Ecological Environment Bureau plans to approve the environmental impact report of the first phase of the 2 million tons/year propane-to-propylene and downstream new materials project of Fujian Yongrong New Materials Co.
,
Ltd.

The project is located in Shimenao Industrial Park, Xiuyu District, Putian, Fujian.
The construction unit is Fujian Yongrong New Materials Co.
, Ltd.
The main construction of the first phase of the 2 million tons/year propane-to-propylene and downstream new material project: 900,000 tons/year propane dehydration Hydrogen (PDH) unit, 36,000 tons/year PSA hydrogen extraction unit, 800,000 tons/year polypropylene (PP) unit and supporting public works and auxiliary production facilities
.
The total investment of the project is 8,067.
67 million yuan, of which 97.
59 million yuan is invested in environmental protection
.

On December 23, 2020, the signing event of a major project of the national new functional materials industry cluster in Pu City, Fujian Province was held
.
The contract includes four projects, including Yongrong New Materials' 2 million-ton propane-to-propylene project, with a planned total investment of 39.
6 billion yuan
.

On February 21, 2022, the Fujian Provincial Department of Industry and Information Technology issued the review opinions on the energy saving report of Fujian Yongrong New Materials Co.
, Ltd.
’s 2 million tons/year propane-to-propylene and downstream new material projects, and agreed in principle with the report.
The project energy saving report passed the review
.
According to the announcement, the project will be implemented in two phases.
In the first phase, a new 900,000-ton/year propane dehydrogenation unit, a 36,000-ton/year PSA hydrogen extraction unit, two sets of 450,000-ton/year polypropylene units and supporting public facilities will be built.
With engineering and auxiliary production facilities, in the second phase, another 1.
1 million tons/year propane dehydrogenation unit, 44,000 tons/year PSA hydrogen extraction unit, 2 sets of 550,000 tons/year polypropylene units and supporting public works will be built and auxiliary production facilities
.
After the project is completed, it will increase the annual production capacity of 2 million tons of propylene and 2 million tons of polypropylene
.
The first phase of the project is scheduled to be completed and put into operation in December 2023, and the second phase is scheduled to be completed and put into operation in June 2026
.

On May 26, 2022, the information on the consultation draft of the environmental impact report of the first phase of the PDH project was released
.
On June 10, 2022, the environmental impact report (public draft) of the first phase of the PDH project will be announced before it is accepted
.

——Progress of Wanhua PDH project

Eastern District launched PDH! Build Fujian base integrated industry

Wanhua Chemical has put into operation a 750,000-ton/year PDH unit in Yantai (using Uop process), and at the same time provides upstream propylene raw material supply for downstream products.
The company plans to build a 900,000-ton/year plant in Yantai Penglai and Fujian Fuqing each.
The PDH devices all use the Lummus process
.

At present, the two major PDH projects have been accelerated simultaneously, and both have entered the equipment procurement stage.
Both are expected to start construction in the second half of this year and will be completed and put into production in 2024
.
By then, Wanhua Chemical's PDH production capacity will reach 2.
55 million tons/year
.

Eastern District launched PDH! Build Fujian base integrated industry

It is reported that Wanhua Chemical plans to build a 900,000-ton/year PDH plant in Jiangyin, Fujian, using the Lummus process
.
At present, the project has entered the equipment procurement stage.
It is expected to start construction in the second half of this year, and it is planned to be completed and put into production in 2024
.

Established Fujian New Materials Co.
, Ltd.
to lay out the PDH and downstream industries in the Eastern District

On March 24, 2021, Wanhua Chemical issued a foreign investment announcement: Wanhua Chemical Group Co.
, Ltd.
holds 80% of the shares and Ningbo Zhongtao Investment Co.
, Ltd.
holds 20% of the shares to establish a joint venture company - Wanhua Chemical (Fujian) ) New Materials Co.
, Ltd.
(hereinafter referred to as "Fujian New Materials Company"), with a registered capital of 3 billion yuan, of which Wanhua Chemical contributed 2.
4 billion yuan, and both parties will contribute in cash
.

The investment plan of this announcement is located in the Eastern District
.
In the future, Wanhua Chemical will plan the petrochemical industry chain in the east area of ​​Jiangyin Gangcheng Economic Zone, Fujian Province, and initially plan the PDH propane dehydrogenation to propylene and the downstream industry chain of propylene.
Fujian New Materials Company is mainly responsible for the promotion of the project in the east area
.

The existing industrial layout of Wanhua Fujian Industrial Park is mainly concentrated in the west area of ​​Jiangyin Gangcheng Economic Zone and polyurethane-related projects.
Among them, Wanhua Fujian is mainly responsible for the construction of TDI, PVC, syngas and supporting air separation, liquid ammonia, aniline and other equipment and wharf construction ; Wanhua Fujian Isocyanate Co.
, Ltd.
is mainly responsible for the construction of the main MDI plant and some supporting public works
.
The main plan is 400,000 tons/year MDI, 250,000 tons/year TDI,
etc.

This project is jointly invested and constructed by Wanhua Chemical and Fujian Petrochemical, of which Wanhua Chemical holds 80% and Fujian Petrochemical holds 20%
.

After the newly established Fujian New Materials Company, it is expected to replicate the polyurethane + PDH model of Yantai Industrial Park.
The petrochemical resources in the east area can be used to form the source of raw materials for the project in the west area, so as to realize the interconnection between the east area and the west area.
Sharing infrastructure and supporting facilities greatly enhances the integration advantages of the Fujian base and promotes the maximization of park benefits
.

Taking the current polyurethane + petrochemical layout of Wanhua Yantai Industrial Park as an example, there is a lot of synergy between petrochemical projects and polyurethane projects:

(1) Shared thermal power and other public works;

(2) A large amount of by-product hydrochloric acid from MDI and TDI units can be digested by petrochemical projects for the production of PVC;

(3) PDH hydrogen production can reduce the cost of MDI;

(4) The production of EO in petrochemical projects will be further used in the production of downstream new material series products
.

In addition, Wanhua Fujian MDI project may use the company's latest generation of MDI production technology
.

After the petrochemical project of Fujian New Materials Company is put into operation, the cost of raw materials will be further reduced and the cost of public works will be further diluted.
Fujian MDI will be expected to become the company's lowest comprehensive cost device, which will further deepen the company's cost moat and expand the company's relative to all competitors.
leading edge
.

Wanhua's industrial chain layout in Fujian is still based on the idea of ​​integration, park, scale and refinement
.
Wanhua Fujian's production capacity will radiate more to South China and Southeast Asia in the future, reducing transportation costs and accelerating the pace of globalization
.
In addition, the main part of the investment of Wanhua Fujian Base is held by employee-owned companies.
In the future, the company will realize the consistent development of the interests of employees and the company, and further enhance the company's cohesion and competitiveness
.

——Accelerate the integration project of high-performance new materials in Penglai Industrial Park

It is reported that Wanhua plans to build a 900,000-ton/year PDH plant in Yantai Penglai Industrial Park, using the Lummus process.
The plant will be simultaneously advanced with the PDH plant in Fujian Industrial Park.
Construction will start in the second half of this year, and it will be completed and put into production in 2024
.

On May 14, Yantai Municipal Bureau of Ecology and Environment approved the environmental impact assessment document for the high-performance new material integration project in Wanhua Penglai Industrial Park.
Wanhua Chemical plans to invest 23.
1 billion to build the high-performance new material integration project in Penglai Industrial Park
.
It is planned to cover an area of ​​about 3,310 mu, mainly constructing 900,000 tons/year propane dehydrogenation, 500,000 tons/year polyether, 400,000 tons/year POCHP, 300,000 tons/year polypropylene, 300,000 tons/year EO, ​​300,000 tons/year tons/year EOD, acrylic acid and ester (160,000 tons/year acrylic acid, 160,000 tons/year butyl acrylate, 20,000 tons/year octyl acrylate), 200,000 tons/year carbonate ester, 30,000 tons/year emollient Agents, air separation and other devices, as well as supporting public works and auxiliary facilities,
etc.