Wanhua Chemical Launches Phase II Expansion of This Product! Phase I Just Added Over 260,000 Tons of Capacity

en.Wedoany.com Reported - On August 18, Wanhua Chemical published the public notice of the draft environmental impact report for the Polyether Polyol Expansion (Phase II) Project.

Project Overview

Project Name: Polyether Polyol Expansion (Phase II) Project

Project Location: Yantai Chemical Industry Park

Project Description: A new 100,000 tons/year POP polyether production line will be added within the No. 2 Polyether Plant, with auxiliary facilities such as utilities and storage/transportation relying on existing infrastructure.

Polyether polyols are a key raw material for the polyurethane industry. According to an industry research report released by the China Chemical Industry Economic and Technological Development Center, in 2025, China's polyether polyol production capacity increased by 14.6% year-on-year, and output increased by 14.0% year-on-year; the operating rate was 64.9%, down 0.4 percentage points year-on-year. Currently, China's polyether polyol production capacity exceeds 10 million tons/year. Production enterprises are mainly located in provinces and cities such as Shandong, Jiangsu, Fujian, and Zhejiang. Among them, Shandong Province has the most concentrated production capacity distribution, accounting for approximately 42.0% of China's total polyether polyol capacity. According to incomplete statistics, China plans to add 1.71 million tons/year of new polyether polyol capacity over the next two years, with an expected average annual supply growth rate of approximately 11.9% from 2023 to 2027.

Phase I Expansion of 262,000 Tons/Year

As for Wanhua Chemical, in 2025, the company's total polyether business capacity reached 2.32 million tons/year, making it a globally leading supplier of polyether polyols. In May of this year, Wanhua Chemical published the draft environmental impact report for its Polyether Polyol Expansion (Phase I) Project.

According to the draft report, Wanhua Chemical plans to carry out capacity expansion and renovation of existing facilities at the Yantai Chemical Industry Park, with a total expansion of 262,000 tons/year. After the expansion, the production scales will be 400,000 tons/year of vinyl polyether polyols (POP polyether), 300,000 tons/year of double metal cyanide catalyst polypropylene oxide polyether polyols (DMC polyether), and 100,000 tons/year of PPG230 polyether, with environmental protection and public auxiliary projects relying on existing facilities.

The draft report reveals that although Wanhua Chemical's total supporting polyether production capacity has already achieved the world's No. 1 ranking, the gap with its MDI/TDI capacity remains significant. In the second half of 2025, all polyether production units have been running at full capacity yet still cannot meet market demand, and future market demand for the polyether industry will continue to grow. Therefore, in order to fully leverage the strategic synergy between polyether and MDI/TDI and match future incremental demand from overseas markets, it is imperative to rapidly expand polyether production capacity.