Total investment exceeds 400 million yuan! Wanhua Chemical’s 300,000-ton MDI project has commenced!

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On the morning of May 8, Ningxia held a meeting to promote the simultaneous commencement of the second batch of major projects in the region for 2022. 23 venues across the region participated in the ceremony via video link with the main venue. The venue for the Ningdong area was located at the site where Wanhua Chemical (Ningxia) Company’s 300,000-ton MDI separation project was set to begin construction. Members of the management committee, representatives from various departments and units, officials from Ningdong Town, representatives from directly affiliated companies and dispatched agencies, as well as representatives from project construction and implementation firms attended the meeting. According to Petrochemical Yuan, the Ningdong base has planned 184 construction projects for the whole year, with a total investment of 165 billion yuan; the planned annual investment amounts to 232 billion yuan, representing a growth rate of over 10%. It is expected that fixed-asset investment will increase by more than 18% from January to April. 119 major projects were launched in the first batch, with a total investment of 132.8 billion yuan, and an annual planned investment of 20 billion yuan ； By the end of April, 4 billion yuan in investment had been completed, representing an investment completion rate of 20%, which is 4.2 percentage points higher than the same period last year. 40 major projects are set to commence construction in the second batch, with a total investment of 43.2 billion yuan, and an annual planned investment of 3.55 billion yuan. Among them, there are 37 industrial projects with an annual planned investment of 3.4 billion yuan, accounting for 92.5% and 95.8% respectively ； There are 3 infrastructure projects, with an annual planned investment of 150 million yuan, accounting for 7.5% and 4.2% respectively. At the construction site of the Ningdong branch, Wanhua Chemical Group, the main contractor, is a leading enterprise in China as well as an internationally renowned company. The MDI project makes use of world-leading proprietary technologies, which will help to develop a high-performance fiber industry cluster worth hundreds of billions in Ningxia, thereby creating a \"China Spandex Valley\". Leveraging its resource advantages and industrial foundation, the Ningdong base plans to develop nine distinct industrial chains. To date, it has launched 11 major projects with an investment of over 145 billion yuan each, including Baofeng Energy’s 1 million-ton olefin production facility, as well as the complete industrial chains for Taihe Aramid and Spandex, and Taifeng Platinium’s adiponitrile production and high-end material manufacturing; in addition, there are also projects such as Hyosung’s 23,000-ton carbon fiber production facility and the Guoneng Comprehensive Energy Center. According to the Ningdong Energy and Chemical Industry Base Management Committee, on April 20, Ningdong Municipal Company handed over the site for Wanhua Chemical’s 300,000 tons per year MDI separation project to the Construction and Transportation Bureau of the Ningdong Management Committee as well as to Wanhua Chemical (Ningxia) Co., Ltd. On the very day the project site was handed over, the Ecology and Environment Bureau of the Ningdong Energy and Chemical Industry Base Management Committee also made public the environmental impact assessment documents related to Wanhua Chemical (Ningxia) Co., Ltd.’s 300,000 tons per year MDI separation project. According to the information in the environmental impact assessment documents, Wanhua Chemical’s project in Ningxia is primarily focused on the separation of MDI products, which serve as raw materials for enterprises in the Ningdong area as well as for Hyosung Spandex (Ningxia) Co., Ltd. located on the west side of the industrial complex. Hyosung Spandex (Ningxia) Co., Ltd. will use a continuous polymerization process to produce spandex fibers, while Wanhua Chemical’s project is aimed at producing the upstream raw materials needed for this process. According to Shihua Yuan, this is a new project with a total investment of 486.8463 million yuan, and the construction period is 12 months. The main construction components of the project include a facility with an annual capacity of 300,000 tons for the separation of MDI products. Using the MDI and PM mixture (hereinafter referred to as PM-100) transported from Wanhua Chemical Group Co., Ltd.’s Yantai production site as raw material, the process involves distillation to separate pure MDI and polymeric MDI, in order to meet the demands of the local market.