Huachang Chemical’s project for producing 300,000 tons of polyols per year has entered the trial production phase

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The three major projects of Huachang Chemical are reaching key milestones simultaneously at the turn of the year. An industrial upgrading drive centered on \"improving quality and efficiency\" is rapidly moving from the design stage to the production site. On December 16, 2025, Huachang Chemical disclosed on the investor interaction platform the progress of construction for several of its key projects. The long-awaited polyol production project with an annual capacity of 300,000 tons has entered the trial production phase, and stable production is expected to be achieved within this month. Meanwhile, the intelligent technology upgrade project for the ammonia synthesis unit, which is central to the company’s efforts to save energy and reduce carbon emissions, has completed its preparatory work for trial production and is set to begin operations soon. This series of intensive actions signals that this established chemical company’s strategic transformation of its core business from basic chemicals to new materials has entered a critical phase where the capacity built will be put into use. 01 Project sprint: Progress on three major projects clarified. In its official response on December 16, Huachang Chemical provided investors with a clear roadmap for industrial upgrading. The polyol project is undoubtedly the focus at present. The project is currently in trial production, and the company expects to reach stable production by the end of December. This is progressing more smoothly than the plan to start trial production by the end of the month just a month ago. The ammonia synthesis technical upgrade project followed shortly after. The total investment in this project is approximately 384 million yuan. It utilizes the advanced low-pressure ammonia synthesis technology from Swiss company Casale, with the aim of replacing the existing high-pressure equipment that has been in use for nearly 20 years. At present, the project has completed the installation of the core equipment and is now in the “preparatory phase for trial production”; official trial production is expected to begin in the near future. The urea technological upgrade project is still in the construction phase. According to the environmental impact assessment published at the beginning of 2025, the project requires an investment of 400 million yuan; it will employ Stamicarbon’s ultra-low energy consumption urea synthesis process to thoroughly upgrade the existing facilities. 02 Strategic Ambition: New materials will play a key role. The commissioning of the polyol production facility with an annual capacity of over 300,000 tons holds milestone strategic significance for Huachang Chemical. This is not only the release of new production capacity, but also a reshaping of the company’s industrial structure. The company revealed in mid-2025 that once the project is put into operation, it is expected to generate additional revenue of over 2 billion yuan. This will directly help Hua Chang Chemical’s new materials business segment account for more than 50% of the company’s total revenue, enabling it to transform from a traditional company focused on basic chemicals and fertilizers into a comprehensive chemical group led by new materials. This project is a key move by the company in its strategic focus on the four major industries of basic chemicals, fertilizers, new materials, and new energy. By expanding into high-value-added new materials in downstream markets, the company aims to enhance its overall profitability and resilience to cyclical risks. 03 Technical upgrades: Aiming for the benchmark of \"energy efficiency leaders\". Alongside capacity expansion, there is also a green upgrade of production technologies. The two technological upgrades in ammonia synthesis and urea production both aim at the core objectives of energy conservation, carbon reduction, and intelligent manufacturing. The ammonia synthesis technological upgrade project adopts an advanced low-pressure process, aiming to replace the existing high-pressure technology. According to the company’s announcement, once the new facility is put into operation, the overall energy consumption per unit of synthetic ammonia is expected to decrease significantly. This is crucial for Huachang Chemical to maintain its status as a leader in energy efficiency within the synthetic ammonia industry. The urea technological upgrade project also focuses on energy consumption. The newly adopted Dutch ultra-low energy consumption technology aims to improve the efficiency of the equipment and its environmental performance without increasing energy consumption. Both of these technological upgrade projects are located at the company’s Zhangjiagang facility. By upgrading the production equipment for key upstream raw materials in terms of intelligence and sustainability, they will provide a more stable and cost-competitive supply of raw materials to support the expansion of new material production processes. 04 Future Outlook: Building a New Growth Curve As the polyol project is about to reach full capacity, Huachang Chemical’s next path of development is becoming increasingly clear. The expansion of the new materials sector will not stop here. The company has previously revealed that the isooctanoic acid project has also been approved for implementation; if it can start operating by the end of 2026, it is expected to generate an additional revenue of around 400 million yuan. This means the company is making continuous investments and making plans around the relevant industrial chains. In its longer-term plans, the company also intends to carry out research and development, as well as pilot applications, in new energy areas such as hydrogen fuel cells and vanadium flow batteries; these innovative efforts pave the way for the company’s long-term growth. In the short term, market attention has shifted from project construction to capacity release and profit generation. Whether the 300,000-ton polyol project can achieve stable production and meet the set targets by the end of the year, as well as rapidly expand into new markets and generate profits, will be the key indicator to assess the success of Huachang Chemical’s strategic transformation. Once the new facility begins to operate stably, the financial statement structure of Huachang Chemical will undergo a historic change. From fertilizers and soda ash to new polyol materials, the company’s transformation story is a microcosm of traditional manufacturing industries moving up the value chain. With revenue from new materials accounting for over ****, Huachang Chemical is not only expanding its production capacity but also redefining its business future. Amid the wave of transformation and upgrading in the chemical industry, it has seized a leading position, but the real tests—those related to the market and profitability—have only just begun.