Wanhua Chemical invests 19 billion yuan to boost its olefin business, accelerating the development of high-end products in the carbon dioxide-related industry

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On the evening of January 30, 2026, Wanhua Chemical issued a statement announcing that the company intended to use its own funds as well as funds raised internally to increase capital in its wholly-owned subsidiary, Wanhua Chemical Group (Yantai) Olefins Co., Ltd. (hereinafter referred to as “Wanhua Olefins Company”), with the total amount of capital injection amounting to 19.086 billion yuan. Wanhua Chemical stated that as its carbon dioxide-related business develops rapidly and its scale continues to grow, in order to improve the efficiency of managing and operating the assets related to this business, the company plans to inject an additional 19.086 billion yuan into Wanhua Olefins Company. This amount consists of 14.586 billion yuan worth of assets related to the 1.2 million tons of ethylene production capacity, as well as 4.5 billion yuan in claims against Wanhua Olefins Company, which is a wholly-owned subsidiary of Wanhua Chemical. This move enables Wanhua Chemical’s carbon dioxide-related operations to be managed under a single legal entity, Wanhua Olefins Company, thereby further enhancing the competitiveness of the company’s carbon dioxide business. In this capital increase, 1 billion yuan is allocated to the registered capital, while 18.086 billion yuan is assigned to capital reserves. Following the capital increase, Wanhua Olefins’ registered capital will rise from 3 billion yuan to 4 billion yuan, remaining a wholly-owned subsidiary of Wanhua Chemical. In 2020, Wanhua’s ethylene cracking unit was successfully commissioned in one go, enabling the development of the C2-C4 industrial chain and leading to a significant increase in the revenue generated by its petrochemical operations. At present, Wanhua Chemical owns assets related to the C2 industry, including an ethylene production facility with a capacity of 1.2 million tons per year that uses ethane and naphtha as raw materials, along with associated LDPE production facilities. Wanhua Olefins owns assets that include another ethylene production facility with a capacity of 1.2 million tons per year powered by ethane, as well as downstream facilities such as PO/SM plants, HDPE plants, LLDPE plants, and PVC plants.