The isobutylene-based MMA technology facilitates the conversion of MTBE

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· With the successful development of the autonomous isobutylene process, China has managed to escape the awkward situation in which this technology was monopolized by foreign companies, and the C4 route has gradually become the mainstream approach for MMA production in China. ·The MTBE Conversion Solutions and New Technologies Forum 2018 will be held in Beijing from October 30-31, and a visit to Yanshan Petrochemical will be arranged as part of the conference. ·Experts and leaders from Huayi Group will attend the conference and deliver a presentation on the progress of MMA production using the isobutylene method and the prospects for the related product market. Methyl methacrylate (MMA) is primarily used in the production of plexiglass (PMMA). It is also one of the key functional monomers used in the manufacture of resins, coatings, adhesives, and lubricants. Additionally, it can be utilized in surface coatings, impact-resistant ACR and MBS materials modified from polyvinyl chloride, as a second monomer for acrylic fibers, and in pharmaceutical functional materials. The current annual demand in the domestic market is around 1 million tons, with steady and rapid growth, yet domestic production amounts to just over 500,000 tons, resulting in a significant gap. The downstream terminal industries in China’s MMA sector are developing at a rapid pace. Taking the growth rate of PMMA as an example, there is an average annual increase of around 20%. In addition to traditional applications such as automotive tail lights and materials for electronic products, fields such as fiber optic cables and consumer cosmetics are also becoming increasingly important. In addition, driven by the ongoing growth in demand for environmentally friendly coatings, some existing coating factories in China had significant expansion plans in 2018. According to the plans of a large coating factory to build new production capacity in North China, the monthly consumption of methyl methacrylate is set to increase by nearly 10,000 tons. Currently, the main MMA production technologies include the acetoncyanohydrin method (ACH method), the butane route, and the ethylene method. Among them, the propylene cyanohydrin method is currently the most widely used approach for MMA production, accounting for over 60% of the world’s total production capacity. The C4 route uses isobutylene or tert-butanol as raw materials. The main sources of isobutylene include C4 by-products (1-stripped liquid), which can be obtained from catalytic cracking or catalytic pyrolysis, as well as heavy feedstocks such as naphtha and gasoline; other sources include MTBE and isobutane. The carbon dioxide route is not common; currently, there are two commercial plants worldwide that use technologies developed by BASF and Lucite, respectively. ——The intensifying environmental protection drive creates strategic opportunities for environmental companies. As environmental regulations become stricter, the traditional ACH method faces constraints in its development. The ACH process uses highly toxic hydrogen cyanide (HCN) and highly corrosive concentrated sulfuric acid as raw materials; the availability of these materials is limited. Moreover, a large amount of ammonium bisulfate is produced as a by-product, requiring the installation of waste liquid treatment and recovery systems. Therefore, production facilities need to be of a large scale in order to remain competitive. In 2008, the propyl cyanohydrin method was included in the Ministry of Environmental Protection’s **Comprehensive List of Environmental Protection – List of Products with High Pollution and High Environmental Risk**. In 2011, the **NDRC’s “Guidelines for Industrial Structure Adjustment in 2011” classified the propylene cyanohydrin method as a restricted category. The \"Negative List for Market Access\" issued in 2016 by the National Development and Reform Commission and the Ministry of Commerce designated methyl methacrylate produced via the propylene cyanohydrin method as an area where new petrochemical projects are prohibited. In 2017, China issued a ban on the import of waste plastics, a policy that cut off the route for producing MMA through the pyrolysis of imported PMMA waste. In China, approximately 150,000 tons of MMA are produced annually via this method, and most companies use PMMA that is imported. The environmental protection drive will only intensify, meaning that the competitive practices of the past, which involved sacrificing the environment and resources in order to make profits, will gradually be phased out. This represents a historic strategic opportunity for outstanding companies. As many polluting enterprises go out of business, it creates space for environmental protection firms to develop, reduces competition, and promotes industrial upgrading. ——The C4 process will become the main manufacturing technique in the MMA industry in the future. The production of MMA via the oxidation of isobutylene takes advantage of abundant C4 resources; the main by-product of this reaction is water, resulting in minimal environmental pollution. It is therefore a cost-effective process with low environmental impact and good economic returns. Before 2017, China built and put into operation two MMA production facilities using the isobutylene process, namely the 100,000 tons per year facility operated by Evonik Degussa and the 90,000 tons per year facility operated by Hui Ling Chemical; both projects utilized foreign technology. With the successful development of domestic proprietary isobutylene production technology, China has managed to get rid of the awkward situation in which this process was controlled by foreign companies. The main owners of the current C4-based MMA technology include Huayi Group, Wanhua Chemical, the Institute of Process Engineering of the Chinese Academy of Sciences, Asahi Kasei of Japan, Mitsubishi Rayon, and others. The C4 route is gradually becoming the mainstream for MMA production in China, accounting for 35% of the total production capacity. Based on incomplete statistics regarding the MMA production projects using the butane oxidation method: Location, company name, production capacity (10,000 tons/year), progress status, and source of technology. Shanghai Evonik Degussa: 10,000 tons/year capacity; foreign technology. Huilin Chemical in Huizhou, Guangdong: 9,000 tons/year capacity; foreign technology. Hua Yi Yu Huang New Materials in Heze, Shandong: 5,000 tons/year capacity; developed by Hua Yi Group. Shandong Yidali Chemical in Heze, Shandong: 10,000 tons/year capacity; technology developed by the Institute of Process Engineering, Chinese Academy of Sciences. Wanhua Chemical in Yantai, Shandong (Phase I): 3,000 tons/year capacity; under construction; owned by Wanhua Chemical. Hua Yi Yu Huang New Materials in Heze, Shandong: 25,000 tons/year capacity planned; developed by Hua Yi Group. Shandong Yidali Chemical in Heze, Shandong: 10,000 tons/year capacity; still in the preliminary stage; technology developed by the Institute of Process Engineering, Chinese Academy of Sciences. Wanhua Chemical in Yantai, Shandong (Phase II): 10,000 tons/year capacity; still in the preliminary stage; owned by Wanhua Chemical. The MMA production process developed by Shanghai Hua Yi New Materials using the butane oxidation method is China’s first industrial project of this kind that relies entirely on domestic intellectual property rights. The first MMA production facility with a capacity of 5,000 tons/year was put into operation in 2017 at Hua Yi Yu Huang New Materials Co., Ltd. in Dongming, Shandong. To date, the plant is operating well, with its performance indicators reaching international advanced levels. The successful development and commercialization of this technology have filled the gap in China’s MMA technology sector, making Huayi the only company aside from Mitsubishi Rayon to possess both catalysts and process technologies. The company is currently actively seeking a suitable location for production, with the plan to build a facility capable of producing 300,000 tons of MMA using the carbon-four process during the 13th Five-Year Plan period. It also aims to industrialize the MMA production technology based on the carbon-two process, in order to meet the growing market demand for MMA. Within 2018, the production of MMA using Wanhua Chemical’s C4 process is expected to begin. Converting MTBE and TBA into MMA and PMMA is an important development direction for Wanhua. The gap between supply and demand, along with strong profitability, are the key factors driving the development of the MMA industry. Based on new project plans and the growth rate of downstream activities, the MMA industry chain is bound to develop in a more healthy direction. Yahua Consulting believes that, due to **industrial policies, environmental considerations, and raw material constraints, the C4 process will become the main manufacturing method for MMA in China in the future.