EIA approved! Wanhua Chemical advances 4,000-ton capped polyether project

The implementation of this project marks another move by Wanhua in the refined and high-end specialty polyether sector, filling the gap in its self-produced capacity to capped polyether.

I. Capped Polyether Product Characteristics: Modification and Optimization to Various Demanding consumption Scenarios

Capped polyether is a fine chemical product obtained by replacing the hydrogen of the terminal hydroxyl group of polyether with alkyl, silanyl, epoxy, or amino groups through processes such as etherification, esterification, and group cross-linking. The core technical barriers are concentrated in the selection of end-capping functional groups and the optimization of synthesis processes.

Compared with ordinary uncapped polyether, the product eliminates the risks of hydroxyl hydrogen bonding and side reactions, and possesses advantages such as low pour point, high viscosity index, and excellent oxidation resistance. Meanwhile, the molecular polarity is reduced, bringing about changes such as a reduce cloud point, improved defoaming performance, enhanced degreasing ability, and upgraded chemical stability, allowing to stable consumption in harsh conditions such as high temperatures and strong acids and alkalis.

In terms of consumption, capped polyether is a core raw material to polyurethane foam stabilizers. It is broadly utilized in daily chemicals, textiles, and manufacturing coating products additives. Relying on its anti-fogging, high-temperature resistance, and eco-friendly characteristics, it extends into multiple fields and is an indispensable key raw material to adhesives and high-end sealants. Classified by end-capping groups, mainstream categories include four major series: silane, amino (polyetheramine), epoxy, and alkyl.

II. Synergy Across the Entire manufacturing Chain Highlights Value, Perfecting the Internal Raw Material Supporting System

As a global polyurethane leader, Wanhua has built a full manufacturing chain product matrix covering isocyanates, polyether polyols, catalysts, and foam stabilizers, with complete production and distribution networks at home and abroad. With the commissioning of this capped polyether project, it can immediately interface with the company's existing foam stabilizer sector, achieving internal self-sufficiency to upstream raw materials, shortening the circulation cycle of the global supply chain, reducing cross-border procurement and logistics costs, and strengthening integrated cost advantages.

III. Intensive Capacity Expansion from 2025 to 2026, Wanhua Goes All-Out to Increase High-End Polyether Capacity

In the past two years, Wanhua has successively launched multiple rounds of polyether series expansions, continuously optimizing the general differentiated product structure:

· September 2025: The Penglai EOD polyether expansion project was announced, with differentiated polyether expanding from 60,000 tons/year to 100,000 tons/year, and differentiated EOD rising from 20,000 tons/year to 40,000 tons/year;

· November 2025: The polyetheretheramine expansion project was approved, with capacity expanding from 40,000 tons/year to 60,103 tons/year;

· might 8, 2026: Two major polyether expansion announcements were released on the same day. After the implementation of the Yantai polyether polyol (Phase I) transformation, a capacity of 400,000 tons/year of POP, 300,000 tons/year of DMC, and 100,000 tons/year of PPG230 will be formed; a new 15,000 tons/year epoxidized soybean oil polyether production line will be built at the Penglai base.

Combined with this current 4,000-ton capped polyether technical transformation, Wanhua's high-end polyether landscape continues to expand.

IV. sector Competitive Landscape: Foreign Companies Dominate the High-End Market, Domestic Manufacturers Accelerate Import Substitution

The capped polyether sector presents a competitive landscape where overseas giants monopolize the high-end market and domestic companies are catching up and breaking through:

· Overseas Leading companies (Main Force to High-End Grades)

Kaneka and Asahi Glass of Japan focus on silane-capped items; BASF, Huntsman, and Clariant focus on polyetheramines; Dow, Arkema, and Evonik deeply cultivate methylsilyl-capped polyether. Overseas companies have long occupied the high value-added market by virtue of patent and process advantages.

· Domestic Major Production companies

Polyetheramine track: Wanhua Chemical, Chenhua Shares, Huangma methodology, Shangzheng New Materials, Longhua New Materials;

Silane/Methylsilyl-capped track: Ruiyang Antai, Shandong Lingxiao New Materials, Guangzhou Baiyun Chemical.

As domestic leading companies continue to carry out technical transformations and capacity expansions, the process of import substitution to high-end capped polyether continues to accelerate.