Lianhong New Materials’ 100,000-ton/year POE project has been successfully completed! It has officially entered the preparatory stage for trial production.

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With an investment of 5.2 billion yuan, Lianhong New Technology’s 100,000-ton/year POE production project has been successfully completed! It has officially entered the preparatory stage for trial production. This project is a 300,000-ton/year POE facility jointly built by Lianhong New Materials and Huisheng Investment. Recently, Lianhong New Materials revealed on an interactive platform that its 100,000-ton/year POE (polyolefin elastomer) facility was completed in February and has now entered the preparatory stage for trial production. This project is the first phase of a 300,000-ton/year POE production facility, jointly established by Lianhong New Materials and Huisheng Investment. With a total investment of 5.2 billion yuan, construction began on September 26, 2024; it focuses on the production of high-end products such as photovoltaic film materials and toughening agents. Given the recent price increases in EVA and POE products on the market, the pilot production of these materials will help alleviate the shortage of high-quality domestic POE. From the perspective of those in the chemical industry, this represents not only a milestone in domestic technological advancement but also holds opportunities and challenges during the period of industry transformation. I. Overview of the project: A joint venture approach aimed at entering the high-end POE market. As a high-end polyolefin elastomer, POE boasts excellent flexibility and aging resistance; it is a key material for photovoltaic sealants (especially suitable for new types of photovoltaic cells such as N-type and BC cells). It is also widely used in fields such as automotive modifications and electronics. Until now, this market has been dominated by foreign giants such as Dow, LG Chem, and SABIC, resulting in a significant shortage of high-end production capacity in China. Lianhong New Materials has made a strategic investment in this sector; in August 2023, it established Lianhong Huisheng (Jiangsu) New Materials Co., Ltd. in a joint venture with Huisheng (China) Investment Co., Ltd. With a total investment of 5.2 billion yuan, the company plans to build a POE production facility with an annual capacity of 300,000 tons. The construction will take place in two phases: 100,000 tons per year in the first phase and 200,000 tons per year in the second phase, covering high-end products such as photovoltaic film materials and toughening agents. One of the phases of this project officially commenced on September 26, 2024. After 17 months of construction, it was completed in February 2026. It is now in the preparation phase for trial production, with stable mass production expected to be achieved in the near future. It is worth noting that recently, influenced by the external environment as well as industry supply and demand, the prices of photovoltaic-related chemical products such as EVA and POE have risen in line with market trends. According to industry monitoring, the price of high-grade POE in the East China market currently ranges from 13,000 to 17,500 yuan per ton, which provides a solid foundation for profitability once the projects come online. II. Case Comparison: Lianhong’s Advantages Stand Out as Domestic Substitution Accelerates Progress. The domestic POE industry is currently experiencing a period of increased production capacity from domestic manufacturers. Compared to similar projects, Lianhong New Materials’ first-phase project has significant advantages in terms of the joint venture model, product positioning, and construction efficiency, which further helps domestic POE products break through foreign monopolies. Compared with Wanhua Chemical’s 200,000 tons per year POE production facility in Yantai, the latter uses self-developed metallocene catalyst technology; after going into operation in June 2024, the purity of its products reached 99.5%. These products are supplied mainly to leading film manufacturers such as Foster and Swick. However, the investment for a single production unit is around 4 billion yuan, with an investment of 400 million yuan per 10,000 tons of production capacity ； The total investment for the first phase of Lianhong New Technology’s 100,000 tons per year production facility is 5.2 billion yuan (including plans for the second phase); this results in a more favorable investment per unit of production capacity. By leveraging the joint venture model, it was possible to quickly integrate Huisheng’s resources in the field of chemical engineering construction, with a construction period of only 17 months, which is less than the industry average of 20 months. Compared with Maoming Petrochemical’s 50,000 tons per year POE production project, the latter focuses on mid-to-low-end general-purpose materials, aiming to fill the gaps in the domestic mid-to-low-end market. In contrast, Lianhong New Technology concentrates on high-end photovoltaic film materials and toughening materials, targeting the high-value-added sector and taking advantage of the growing demand for POE driven by the adoption of N-type batteries ； Furthermore, although 70% of the production capacity of Jiangsu Hongjing’s 100,000 tons per year POE project is dedicated to automotive modification materials, it does not cover both the photovoltaic and automotive sectors; in contrast, Lianhong New Technology has a more flexible product portfolio, giving it greater resilience to market fluctuations. III. Core value of the project: Driven by the growing demand for photovoltaic technologies, the coordinated development of the industrial chain plays a vital role. The advancement of Lianhong New Technology’s POE project represents not only a crucial step in upgrading the company’s own product portfolio but also holds significant importance for China’s POE industry chain as well as the broader photovoltaic industry. From the perspective of industry demands, POE is the second-largest category of raw materials for photovoltaic encapsulation films. It boasts significant advantages in terms of resistance to PID and aging, making it suitable for the packaging needs of new types of photovoltaic cells. As China’s photovoltaic industry continues to expand, the demand for POE is growing at a rapid pace. According to statistics, the domestic import volume of POE in 2025 will be 354,000 tons, a decrease of 13.85% on a year-on-year basis. The rate of domestic self-sufficiency will rise from 30% in 2024 to 55%. Once the first phase of Lianhong New Materials’ project comes online, it will further increase this rate of domestic self-sufficiency and reduce reliance on imports. From the perspective of corporate synergy, Lianhong New Materials currently has an EVA production capacity of over 150,000 tons per year; it is also building a new EVA production facility with a capacity of 200,000 tons per year using the tubular process. POE and EVA complement each other well in the field of photovoltaic encapsulation materials. Once this new facility is operational, the combination of \"EVA+POE\" products will enable better synergy, further strengthening the company’s competitiveness in the photovoltaic materials sector. At the same time, it will help downstream encapsulation material manufacturers reduce their import costs. IV. In-depth analysis of the chemical industry: Opportunities and challenges coexist; sticking to technology is key. From the perspective of those working in the chemical industry, the upcoming trial production of Lianhong New Materials’ POE project represents not only a milestone in the development of high-end domestic olefins but also brings new opportunities and challenges for industry professionals, which can be understood from three perspectives. Firstly, the implementation of technology is the core prerequisite for successful trial production. The production of POE relies heavily on metallocene catalyst technology; previously, domestic companies faced issues such as unstable catalyst performance and substandard product purity. As professionals in the chemical industry, it is essential to pay close attention to the control of process parameters during the pilot production phase. This includes precise control of the temperature and pressure during polymerization reactions, as well as monitoring key indicators such as product purity and melt strength. Such efforts are necessary to ensure that the products meet photovoltaic and automotive industry standards, thereby avoiding potential production issues resulting from inadequate technology. Secondly, industry trends drive the need for skill upgrades. The current POE industry is moving toward higher-end products and lower carbon emissions; the EU’s carbon tariffs force companies to reduce the carbon footprint of their products, so the Lianhong New Materials project must also focus on optimizing low-carbon production processes. For those in the chemical industry, it is necessary to proactively learn skills related to the use of metallocene catalysts and POE modification, especially the quality control techniques for photovoltaic-grade POE, in order to meet the demands of the industry’s transition toward higher-end products and enhance their own core competitiveness. Thirdly, supply chain collaboration is key to long-term development. POE production relies on key raw materials such as α-olefins; currently, the self-sufficiency rate of α-olefins in China is still low. Lianhong New Technology needs to strengthen cooperation with its raw material suppliers to ensure a stable supply of these materials. As a chemical industry professional, I am well aware of the impact that supply chain disruptions have on production; it is therefore necessary to conduct thorough inspections of raw materials and manage inventory effectively during the production process. At the same time, it is important to pay attention to the progress in localizing raw material production in order to ensure the autonomy and control over the industrial chain. In conclusion, the trial production preparation phase for Lianhong Xinkē’s 100,000 tons per year POE production project represents an important milestone in the development of China’s high-end polyolefin industry. It not only meets the growing demands of the photovoltaic industry but also demonstrates the capabilities of Chinese chemical companies in the field of high-end materials. Once the project is put into operation, it will further enhance the domestic POE product portfolio, break the overseas monopoly, and provide chemical industry professionals with more high-level job opportunities and growth prospects. For those in the chemical industry, only by keeping up with technological advancements and honing their professional skills can they seize the initiative in the trend of upgrading domestic chemical materials and contribute to the high-quality development of the industry.