Construction begins on Wanhua (Penglai) New Materials’ 400,000-ton/year POE project at the Low-Carbon Industrial Park

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Wanhua Chemical’s 400,000-ton/year POE project kicks off March 5, 2025 At the recent meeting on advancing the construction of key projects for high-quality development in Yantai, 321 key projects across the city began construction, including Wanhua Chemical (Penglai) Co., Ltd.’s 400,000-ton/year polyolefin elastomer (POE) project, which started work at the Penglai site. 　　The project is located in the Wanhua (Penglai) New Materials Low-Carbon Industrial Park. As a downstream product of ethylene in its second phase, this project represents an important high-end product in the ethylene product chain. By utilizing Wanhua Chemical’s proprietary research and development technologies, it is possible to significantly enhance the value of the ethylene industry chain, which in turn helps boost Wanhua Chemical’s competitiveness in the global polyolefin elastomer market and further solidify its leadership in the field of new chemical materials. 　　It is understood that this project represents the largest industrial production facility in this field in China to date. It utilizes technologies independently developed by Wanhua, thereby breaking foreign technological monopolies. The products meet the high-end requirements for corrosion resistance, impact resistance, and lightweight properties in applications such as photovoltaic encapsulation films and automotive parts, thus unlocking a blue-ocean market worth hundreds of billions of yuan. Once fully operational, the project will work in synergy with the nine production units in Wanhua’s Phase I project, enabling shared raw materials and facilities. This will help Penglai develop a globally leading green and low-carbon new materials industrial cluster. 　　In September 2021, Wanhua Chemical completed the pilot production of POE products and established several production facilities with an annual capacity of 200,000 tons each; these facilities are among the key units in the company’s 1.2 million tons per year ethylene and related high-end polyolefin production project. Among them, the first-phase POE plant with an annual capacity of 200,000 tons began operations on June 29, 2024. The second-phase POE project at the Penglai facility, with an annual capacity of 400,000 tons, is expected to be completed and put into operation by the end of 2025; once completed, the company’s total POE production capacity will reach 600,000 tons per year.