Jihua Group invested 17 billion to sign 700,000 tons of polycarbonate project

On November 3, Daqing High-tech Zone and Jilin Chemical Industry Co., Ltd. signed a cooperation agreement for 700,000 tons of polycarbonate and downstream automotive chemical industry park project. According to the agreement, the project plans a total investment of 17 billion yuan. The site is located in Linyuan Park. After the project is put into production, the annual sales income will reach 37 billion yuan.

It is understood that the project will be implemented in two phases. The first phase plans to invest 8.7 billion yuan, and the annual sales income will reach 16.3 billion yuan. The first phase will focus on the construction of 240,000 tons/year of polycarbonate and 70,000 tons of PC/ABS alloy. The equipment, synchronous construction of ethylene oxide / ethylene glycol, phenol / acetone, diphenyl carbonate, dimethyl carbonate, bisphenol A and other supporting equipment, is scheduled to start in April next year, put into production in July 2021. Project second and The downstream automobile chemical industry park project started at the appropriate schedule.

According to the data, as of July 2018, China has completed 8 projects for the production of polycarbonate, with a total production capacity of 1.025 million tons / year, accounting for about 20% of the global total capacity. The main production enterprises include Zhejiang Jiaxing Teijin Polycarbonate Co., Ltd. Company (150,000 tons/year), Shanghai Costron Polymers (China) Co., Ltd. (400,000 tons/year), Sinopec Mitsubishi Chemical Polycarbonate (Beijing) Co., Ltd. (60,000 tons/year), Mitsubishi Gas Chemical Engineering Plastics (Shanghai) Co., Ltd. (80,000 tons/year), Ningbo Zhetie Dafeng Chemical Co., Ltd. (100,000 tons/year), Liaocheng Luxi Polycarbonate Co., Ltd. (65,000 tons/year), Wanhua Chemical Group Co., Ltd. (70,000 tons / year), Lihua Yiweiyuan Chemical Co., Ltd. (100,000 tons / year).

In addition, as a high-end petrochemical product with high added value and high technology threshold, polycarbonate has a high concentration of production capacity. The three largest polycarbonate producers such as Covestro, SABIC and Teijin account for more than half of the world's total capacity. The top two giants accounted for more than 50%, showing an oligopolistic competition.

Under the boom of polycarbonate capacity expansion, how to become a hot spot in the industry?

First, the market share of polycarbonate in traditional downstream applications is facing the pressure of competition from other engineering plastics and new materials. It is urgent to find and expand the emerging application market to ensure steady growth in demand.

Second, under the rapid expansion of China's polycarbonate production capacity, the low-end, general-purpose materials market may face overcapacity and fierce competition. Manufacturers need to look to overseas emerging markets, develop and deploy overseas markets, and participate in international competition.

The supply and demand gap will further widen in 2018

In 2018, the newly added capacity is only 135,000 tons of Luxi Chemical, 70,000 tons of Wanhua Chemical, and 250,000 tons of new demand. The supply is intensified. New and planned projects should avoid product homogeneity, should be differentiated and high-end. Development

In November 2017, the Ministry of Commerce ruled that Thailand imported bisphenol A dumping, which imposed a 10.1% deposit on Thai PTT. The proportion of Thai bisphenol A imports accounted for 38%. The PC cost terminal continued to rise;

In the first half of 2017, SABIC North American equipment suffered force majeure and announced that it would suspend production for 2 months. Overlay of Sinopec Mitsubishi's overhaul, PC prices continued to rise;

Although 2019 plans to put a lot of capacity, but considering that most of the installations are 'from scratch', the actual production schedule is likely to be lower than expected. Even if the commissioning time is at least a year or so, the duration of this round of the boom period is also expected. More than expected.