Top 10 Trends in the Polyolefins Industry

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I. Sinopec’s \"oil + coal\" strategy drives the development of high-end polyolefin products in China. Companies such as Shanghai Petrochemical, Yanshan Petrochemical, Maoming Petrochemical, Guangzhou Petrochemical, Tianjin Petrochemical, Qilu Petrochemical, Yangzi Petrochemical, Zhenhai Refining & Chemical, Shanghai Sinopec, Zhongyuan Petrochemical, Luoyang Petrochemical, and Sino-Korea Petrochemical have long been leading enterprises in the development of new polyolefin products. NCIC has always been at the forefront of research and development in high-melt-strength polypropylene, special films, antibacterial materials, medical materials, rotomolding materials, and more. II. CNPC’s \"oil + ethane\" strategy: accelerated development of metallocene catalysts and related products. The ethane cracking to produce ethylene project at Changqing Petrochemical will be the first cracking facility in China to use pure ethane as feedstock. The Tarim Ethane Cracking to Ethylene Project by PetroChina Dushanzi Petrochemical was put into operation shortly thereafter. For both projects, the required ethane is sourced domestically from PetroChina’s oil and gas resources, thereby effectively mitigating the risk of supply disruptions that could arise from reliance on imported ethane. Dushanzi Petrochemical, Lanzhou Petrochemical, Fushun Petrochemical, Daqing Petrochemical, and Daqing Refining & Chemical have always been leading benchmark enterprises for PetroChina in the polyolefins industry. In recent years, the Petrochemical Research Institute has spared no effort in the research and development of metallocene catalysts and metallocene-based products. III. Wanhua Chemical is the undisputed leader in the chemical industry, and a dark horse in the polyolefins sector. Wanhua Chemical possesses an inherent drive for technological innovation; it has completed the pilot production of POE elastomers, and is actively developing high-end polyolefin products such as metallocene polyolefins, while also researching and developing its own proprietary technologies. At the same time, Yantai plans to build the Phase II project for large-scale ethylene production. Founded in 1978, Wanhua Chemical Group Co., Ltd. was listed on the Shanghai Stock Exchange in 2001. Innovation in technology serves as Wanhua Chemical’s primary core competitiveness. The company boasts highly competitive MDI manufacturing technologies, a complete ADI manufacturing chain, as well as an integrated petrochemical industry chain covering C2, C3, and C4 products. The business focuses on three main industrial sectors: polyurethanes, petrochemicals, and fine chemicals. The related products are widely used in various aspects of daily life, including home furnishings, sports and leisure, automotive transportation, construction industry, and electronics and electrical equipment. The company has production facilities in Yantai, Ningbo, Sichuan, Fujian, and Hungary, aiming to create high-end, digital, and integrated green ecological chemical parks. It has R&D centers in Yantai, Beijing, Ningbo, Fujian, Sichuan, North America, Europe, and other locations both at home and abroad, thus establishing an innovative R&D system that encompasses basic research, engineering development, process optimization, and product application research. It has successfully established 15 national-level laboratories, workstations, and industry innovation platforms, including the “Polyurethane Engineering Technology Research Center”, “Engineering Laboratory for Polymer Surface Material Preparation Technology”, “Certified Enterprise Technology Center”, “Academician Workstation”, and “Postdoctoral Research Workstation”. IV. Hengli Petrochemical: A leading private petrochemical enterprise. Hengli Petrochemical boasts a first-class industrial chain layout and formidable economic strength. Founded in 1994, Hengli Group now owns one of the world’s largest PTA production facilities, as well as one of the largest production bases for functional fibers and weaving enterprises in the world. It has established a \"Corporate Technology Center,\" and its competitiveness as well as the value of its brand are among the highest in the international industry. Hengli Group adheres to the development of a complete industrial chain, establishing a full-chain system that spans \"crude oil – aromatics, ethylene – purified terephthalic acid (PTA), ethylene glycol – polyester (PET) – consumer and industrial fibers, engineering plastics, films – textiles\". In the refining sector, Hengli’s 20 million tons per year integrated refining and chemical project is the first major private refining and chemical project to be included in a document issued by the State Council; it is also a strategic project for the new round of development in the Northeast region. Hengli Petrochemical is making extensive investments in multiple regions across the country in the three areas of “oil”, “coal”, and “biodegradability”, thereby fostering new core competitive advantages for the enterprise. V. Zhejiang Petrochemical’s Mixed-Ownership Demonstration Project – China’s version of the “Gulf of Mexico”
Upon completion of Phase II, Zhejiang Petrochemical will have an ethylene production capacity of 4.2 million tons per year, making it the largest ethylene production base in China. In the future, the polyolefin production capacity in the Ningbo region is also expected to rank first nationwide. Faced with both domestic and international markets, Zhoushan enjoys the greatest advantages in warehousing and logistics. Meanwhile, Zhejiang is the largest producer of plastic products in China; the Zhejiang petrochemical project thus has access to a huge consumer market. Undoubtedly, Ningbo will be the new hub for polyolefins in China in the future. VI. Baofeng Energy has the lowest costs for polyolefins; it is developing products for the mid-to-high-end market. Ningxia Baofeng Energy Group Co., Ltd. is located in the core area of the **-level Ningdong Energy and Chemical Industry Base. There, a circular economy industrial chain that integrates coal, coke, gas, chemical production, oil, and electricity has been established, enabling the transformation of coal resources from fuel into chemical raw materials and their clean and efficient utilization. It is a typical model enterprise for coal-based circular economy. Baofeng Energy is venturing into the photovoltaic industry; it plans to invest 1 billion yuan in photovoltaic hydrogen production. Recently, it was announced that the company aims to achieve carbon neutrality by 2040, embarking on a new strategic journey. Baofeng Energy’s polyolefin production cost is below 4,000 yuan per ton, making it a benchmark company in China for low-cost polyolefin production. Since 2020, Baofeng Energy has focused on the research, development, and production of new polyolefin products, marking the beginning of an upgrade in the structure of its polyolefin products. VII. Donghua Energy invests in \"Ningbo + Maoming\" to create the largest polypropylene production facility; currently, Donghua Energy has a polypropylene production capacity of 1.6 million tons per year. In March 2020, the Maoming Alkane Resources Comprehensive Utilization Project, with a total investment of 40 billion yuan, officially began construction. The first phase of the Maoming project is set to be completed by mid-June 2022, while the second phase is expected to start construction in 2022 and be completed by 2024. Donghua Energy is developing an industrial chain based on green chemistry to foster the new materials and hydrogen energy industries. With the propane-propylene-polypropylene industry chain as its core, it aims to create a world-class polypropylene production base. In the future, the production scale of polypropylene is planned to exceed that of CNPC. Since 2020, Donghua Energy has focused on fiber-based products, while other new product grades are under active development and trial production. VIII. Yueneng Chemical drives the upgrade of coal-based polyolefin products to mid-to-high-end levels. Yueneng Chemical has consistently focused on the production and research and development of polyolefin products, demonstrating a spirit of innovation; it introduces an average of 5–8 new polyolefin products each year. The proportion of new products and specialty materials among its polyolefin offerings is constantly increasing, making it a leading enterprise in the development of new coal-based polyolefin products in China. Tubing materials and transparent materials have become the company’s flagship product lines. IX. XinSuo Chemical focuses on metallocene catalysts. With total assets of 500 million yuan, Zibo XinSuo Chemical produces five series of polyolefin catalysts, having an annual production capacity of nearly 2,000 tons; these catalysts are suitable for both gas-phase and slurry polymerization processes to manufacture polyolefin resins. Relying on the Polyethylene Catalyst Engineering Technology Research Center, Xinsu Chemical has collaborated with numerous domestic and international research institutions, including the Research Institute of Petroleum Processing under Sinopec, Tianjin University, ** University of Science and Technology, and SABIC (Europe). The company is committed to the development of new products and the continuous improvement of product quality. It holds 9 invention patents, 14 utility model patents, and has achieved 10 technological innovation results. Additionally, it has undertaken two projects under the ** Torch Program. Xinsu Chemical is recognized as a high-tech enterprise. The independently developed metallocene polyethylene catalyst fills a gap in the domestic market, and the fully dense metallocene resin produced can completely replace imported products. X. Da Xiangsu has achieved the domestic production of extrusion granulation equipment with a capacity of 350,000 tons per year. Large-scale extrusion granulation units are key pieces of equipment for the post-processing in large ethylene plants. Da Yuansu has developed a domestically produced polyolefin extrusion granulation unit with an annual capacity of 350,000 tons, filling a gap in the domestic market. In 2021, Dalian Rubber and Plastic Machinery Co., Ltd. successfully signed a contract with a large domestic petrochemical company to develop a polypropylene co-rotating twin-screw mixing, extrusion, and granulation unit with an annual capacity of 300,000 tons. “\"Stretching Rheology Application Technology\" is an innovation in energy-saving and efficient extrusion (mixing) systems; this project is a key research initiative supported by the Ministry of Science and Technology. Dalian Rubber & Plastic Machinery Co., Ltd. signed a strategic cooperation agreement with South China University of Technology. Utilizing its testing center, the company actively participates in undertaking certain project topics and tests. It has also obtained the exclusive right to use this technology in products such as “large-scale extrusion granulation units and internal mixers”. After the project achieved its phase-specific results, Da Yuan Suo made active use of Daqing Petrochemical’s 70,000 tons per year PE continuous mixing and extrusion granulation unit to conduct engineering tests and verifications. The application of this stretch rheology technology confirmed the successful development of stretch rheology screws with independent intellectual property rights in China.