Lianhong New plans to build a joint plant for ultra-high molecular weight polyethylene and vinyl acetate

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Lianhong New Materials plans to build a joint production facility for ultra-high molecular weight polyethylene and vinyl acetate. Author/Source: ChemNet China. Date: September 8, 2021. Page views: 17. On the evening of September 7, Lianhong New Materials Technology Co., Ltd. announced that it intends to invest in the construction of a joint production facility capable of producing 20,000 tons per year of ultra-high molecular weight polyethylene and 100,000 tons per year of vinyl acetate, through its wholly-owned subsidiary Lianhong (Shandong) Chemical Co., Ltd. 　　The total investment in the project is approximately 792 million yuan, which will be used for equipment procurement, technology development, construction, etc. The funds for the project are to be raised internally. The projected construction period for the project is 18 months. 　　The project will utilize ethylene produced in-house by Lianhong New Materials as raw material. Leveraging the existing utility infrastructure, it aims to expand the deep processing industrial chain for ethylene. Investments will be made to construct ultra-high molecular weight polyethylene and vinyl acetate plants, thereby establishing a presence in the fields of high-end polyethylene fiber materials and lithium battery separator materials. Additionally, the project will produce vinyl acetate—another key raw material required for the company’s EVA products. 　　Reportedly, ultra-high molecular weight polyethylene is a thermoplastic engineering plastic with excellent properties and wide-ranging applications. Among its various forms, membrane-grade and fiber-grade materials represent two high-end varieties of ultra-high molecular weight polyethylene. The demand from downstream markets is growing rapidly; it is estimated that by 2025, the average annual compound growth rate of demand will exceed 30%. Separator materials are primarily used in the production of lithium-ion battery separators; they constitute the main raw material for wet-processed separators. Fiber materials, on the other hand, are mainly utilized in the manufacture of ultra-high molecular weight polyethylene fibers. These fibers find applications in high-end manufacturing sectors such as military bulletproof armor, protective clothing, and deep-sea fishing nets. Currently, China relies primarily on imports for high-end ultra-high molecular weight polyethylene materials it needs; thus, there is significant room for market growth and import substitution.