Another important advancement in Wanhua’s Fujian project

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On November 1, 2021, public information indicated that significant progress had been made on Wanhua’s Fujian project. The Environmental Impact Assessment Report for Wanhua Chemical (Fujian) Co., Ltd.’s project to produce 1.08 million tons of aniline per year has been completed and is now in the public disclosure phase. Wanhua Chemical (Fujian) Co., Ltd. was established on April 16, 2020, and is located in the Jiangyin Port City Economic Zone of Fuzhou. The company acquired the existing 100,000 tons per year TDI production facility of Fujian Southeast Electrochemical Co., Ltd., and on this basis carried out technical upgrades to expand the capacity to 250,000 tons per year for TDI production. The company plans to utilize hydrogen chloride generated as a by-product from MDI and TDI production as raw material to construct an 800,000-ton/year PVC project. In addition, supporting projects for the production of 480,000 tons per year of formaldehyde and 1.08 million tons per year of aniline (this project) will supply the formaldehyde and aniline raw materials needed for MDI production at Wanhua Chemical (Fujian) Isocyanate Co., Ltd., further enhancing the polyurethane business value chain of Wanhua in Fujian. Name and nature of the construction project: Project name: Wanhua Chemical (Fujian) Co., Ltd.’s project for an annual production capacity of 1.08 million tons of aniline ； Construction unit: Wanhua Chemical (Fujian) Co., Ltd ； Project location: Jiangyin Port City Economic Zone, Fuzhou; see the map for geographical coordinates ； Nature of construction: Renovation and expansion ； Land area: The expansion adds 22.75 hectares of land, bringing the total land area for the project to 47.99 hectares ； Annual operating hours: 7200 hours ； Total investment: The total investment for this project is 2,750,362.1 thousand yuan ； Estimated construction period: 60 months, with construction carried out in three phases. Phase 1 will involve the construction of 2 units for nitric acid with a capacity of 360,000 tons per year, 1 unit for *** with a capacity of 480,000 tons per year, and 1 unit for aniline with a capacity of 360,000 tons per year ； In the second phase, 1 set of *** production facilities with an annual capacity of 480,000 tons and 1 set of aniline production facilities with an annual capacity of 360,000 tons will be built ； In Phase 3, another set of facilities will be built: one unit for producing nitric acid at 360,000 tons per year, one unit for producing *** at 480,000 tons per year, and one unit for producing aniline at 360,000 tons per year. On September 23, 2021, the Fuzhou Ecology and Environment Bureau made public the environmental impact assessment documents for Wanhua Chemical (Fujian) Co., Ltd.’s project to expand its TDI production capacity by 250,000 tons per year (to replace the existing 100,000-ton capacity and the additional 150,000 tons of capacity that has already been approved). On March 24, 2021, Wanhua Chemical issued a announcement stating that, with Wanhua Chemical Group Co., Ltd. holding 80% of the shares and Ningbo Zhongtao Investment Co., Ltd. holding 20%, a new joint venture company was planned to be established. The proposed name for this company is \"Wanhua Chemical (Fujian) New Materials Co., Ltd.\" (the final name will be subject to approval by the relevant authorities). The registered capital of this company will be 3 billion yuan, with both parties contributing funds in cash. According to the company’s plans, a petrochemical industry chain will be developed in the eastern area of the Jiangyin Port City Economic Zone in Fujian in the future, with PDH – propylene production via propane dehydrogenation – and the downstream industries related to propylene being part of this initial plan. The establishment of Wanhua Chemical (Fujian) New Materials Co., Ltd. is aimed at primarily driving the progress of the project in the eastern area. According to the local plans of Fuqing City in Fujian Province, Jiangyin is set to be developed into a world-class chemical and new materials hub worth hundreds of billions. The key industrial chain plans include: taking Wanhua Chemical as the leader, carrying out project development in the eastern and western chemical industrial zones, and creating a world-class polyurethane industrial chain ； Relying on the Zhongjing Petrochemical Technology Park, it aims to achieve a complete integration of the entire propylene industry chain and expand the propylene and polypropylene industries.