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Wanhua Chemical: MDI plant with an annual output of 400,000 tons is expected to be put into operation from the end of the year to the first quarter of 2023

2022-08-16by admin

Latest News: On August 15, Wanhua Chemical stated at the 2022 semi-annual performance briefing that the increase in the company’s sales and prices in the first half of the year led to a year-on-year increase in revenue. There is still a high degree of uncertainty in crude oil and natural gas prices, but there have been signs of a correction in international oil prices recently.

The MDI plant with an annual output of 400,000 tons in Fujian is being invested and constructed as planned, and is expected to be put into operation from the end of 2022 to the first quarter of 2023. At the present stage, the company has successfully completed the small-scale test of rigid foam recovery, produced qualified polyether products, and has started the construction of the pilot plant. In the international market, the company currently mainly supplies products produced by BC factories in China and Europe.

Previously, on July 28, Wanhua Chemical released its 2022 semi-annual report. The report showed that the company achieved an operating income of 89.119 billion yuan, a year-on-year increase of 31.72%; the net profit attributable to shareholders of the listed company was 10.383 billion yuan, a year-on-year decrease of 23.26%; The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 10.222 billion yuan, a year-on-year decrease of 22.53%.

At the performance meeting, Wanhua Chemical stated that the increase in revenue in the first half of the year was due to the commissioning of new plants such as PO/SM and polyether, which led to a year-on-year increase in the sales of polyurethane products. Prices, etc. rose sharply year-on-year, driving up product prices, especially in overseas markets. Higher volumes and prices resulted in higher revenue year-over-year.

However, at the same time as the increase in revenue, the prices of raw materials such as pure benzene, toluene and chemical coal, as well as the prices of overseas natural gas and energy have risen sharply, resulting in a larger increase in costs and a decrease in gross profit in the first half of the year. Affected by the conflict between Russia and Ukraine in the second half of this year, crude oil and natural gas prices are still subject to high uncertainty, but there have been signs of a correction in international oil prices recently. On the one hand, the company controls a reasonable inventory level to ensure low-cost operations; on the other hand, it reduces procurement costs through global procurement resource allocation.

Wanhua Chemical pointed out that the company’s fine chemicals and new materials segment mainly includes ADI, special amine, PC, TPU, PMMA, water-based resin, PBAT and other product series, with rich downstream applications. According to the statistics of the past ten years, the global MDI consumption has maintained an annual growth rate of 4-5%, and the annual consumption demand has increased by about 400,000 tons. The company is full of confidence in the future market demand. In the first half of the year, R&D investment of about 1.5 billion yuan will continue to increase investment in technology optimization and fine chemicals research and development.

In terms of production capacity, according to Wanhua Chemical, the MDI plant with an annual output of 400,000 tons in Fujian is being invested and constructed as planned, and is expected to be put into operation from the end of 2022 to the first quarter of 2023. The company attaches great importance to sustainable development and hopes to solve the problem of foam recycling through technological innovation. At the current stage, the small-scale test work for the recovery of rigid foam has been successfully completed, and qualified polyether products have been produced, and the construction of the pilot plant has been started.

In the international market, North America is an important polyurethane market. At present, Wanhua Chemical mainly supplies products produced by BC factories in China and Europe. The company has an integrated manufacturing base in Hungary, and has sales companies or offices in major economies around the world. In the first half of the year, overseas sales accounted for more than 50%. The company will continue to increase investment in resources such as technical services and logistics facilities in overseas markets, further enhance its localized service capabilities in overseas markets, and increase its influence and market share in overseas markets.

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