Thread Content
According to a news release from Sinochem New Network, Wanhua Chemical Group Co., Ltd. has announced its intention to use its own funds as well as funds raised internally to increase the capital of its wholly-owned subsidiary, Wanhua Chemical Group (Yantai) Olefins Co., Ltd. The total amount of capital to be invested is 19.086 billion yuan. Wanhua Chemical stated that with the rapid development of the carbon dioxide-related industry and the continuous expansion of its scale, in order to improve the efficiency of managing and operating the company’s assets in this sector, Wanhua Chemical plans to inject a total of 19.086 billion yuan into Wanhua Olefins Company – including 14.586 billion yuan worth of assets related to ethylene production with an annual capacity of 1.2 million tons, as well as 4.5 billion yuan in claims against its wholly-owned subsidiary Wanhua Olefins Company. This move will enable centralized management and operation of Wanhua Chemical’s carbon dioxide-related business under the same legal entity, Wanhua Olefins Company, thereby further enhancing the competitiveness of this business area. In this capital increase, 1 billion yuan is included in the registered capital, while 18.086 billion yuan is allocated to capital reserve. Following the capital increase, the registered capital of Wanhua Olefins will rise from 3 billion yuan to 4 billion yuan. It will remain a wholly-owned subsidiary of Wanhua Chemical. At present, Wanhua Chemical’s assets in the ethylene industry consist of an ethylene production facility with a capacity of 1.2 million tons per year, using ethane and naphtha as raw materials, along with related assets such as low-density polyethylene production facilities. Wanhua Olefins’ assets include an ethylene production facility with a capacity of 1.2 million tons per year, using ethane as a raw material, as well as downstream facilities such as PO/SM plants, high-density polyethylene plants, linear low-density polyethylene plants, and polyvinyl chloride plants. At present, Wanhua Chemical has established a full-industry-chain framework featuring the coordinated development of three core business segments: polyurethanes, petrochemicals, and emerging materials, thereby creating a stable growth model supported by multiple business areas. Among these, the petrochemical business has now become the main source of revenue for Wanhua Chemical, while the carbon dioxide-related industry chain is a key focus area for this sector. In the first three quarters of last year, the company’s petrochemical products generated sales revenue of 59.319 billion yuan, with both production and sales volumes increasing significantly: production reached 1.83 million tons and sales reached 1.75 million tons, representing year-on-year increases of 41% and 33%, respectively. At present, Wanhua Chemical is focusing on developing the carbon dioxide-related industrial chain. The material transformation work for the first phase of the ethylene production facility in its Yantai industrial park has been completed, enabling a flexible feeding system that allows switching between ethane and propane as raw materials. This not only reduces reliance on imported raw materials but also ensures a stable supply of key raw materials for its downstream new materials business.