Construction of PVB functional film project at HuaiDe New Materials Co., Ltd. begins

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On December 26, the groundbreaking ceremony for the PVB functional film project of Huaiji New Materials Co., Ltd. was held. Huaiji Huaixin New Materials Co., Ltd. was established in August 2015 with a registered capital of 200 million yuan. It is a wholly-owned subsidiary of Zhejiang Desite Co., Ltd., a leading enterprise in the field of domestic PVB films. From January to October this year, Huaiwei New Materials Co., Ltd. achieved a total output value of approximately 620 million yuan. The project, for which construction has now begun, covers an area of 97.55 mu, with a planned total investment of 1.016 billion yuan. Once it is completed and operational, it is expected to generate an annual output value of 1.35 billion yuan; its main products include PVB functional films and PVB resin powder. Polyvinyl butyral (PVB) is a thermoplastic resin obtained by the condensation of polyvinyl alcohol (PVA) and n-butylaldehyde under acidic conditions. It possesses excellent transparency, adhesiveness, impact resistance, and film-forming properties, as well as good aging resistance under conditions of light, heat, and humidity. In 2023, the global production capacity for PVB resin was approximately 420,000 tons per year, with output of around 310,000 tons, giving an operating rate of about 74%. The global production capacity for PVB resin is concentrated in Western Europe, China, and the United States, with these regions accounting for over 80% of the total capacity. A smaller amount of production capacity is also present in Taiwan, China, Japan, and Malaysia. There are approximately 20 manufacturers of PVB resin worldwide, of which 5 are foreign companies and around 15 are Chinese companies. Overseas PVB resin manufacturers hold a dominant position in the PVB film market by controlling raw material resources; there are hardly any film manufacturers overseas that do not possess the capability to produce resins. The downstream applications of PVB resin can be divided into membrane-based applications and non-membrane-based applications. PVB film is primarily used in the production of PVB laminated glass, and is widely applied as encapsulation film in the automotive, construction, and photovoltaic industries. Non-diaphragm applications mainly include inks, coatings, and adhesives.