Wanhua Chem stabilizes the citral industrial chain, with its 4,000-ton aromatic alcohol project advancing towards implementation

Product Portfolio: Adding White Flower Alcohol, MMB and IPG to Supplement Daily Chemical Flavor and solvent-based products Segments

The items planned to this project include three types of fine chemicals: white flower alcohol, MMB and IPG, and the market prospects of each product vary significantly.

White flower alcohol is a representative fragrance in the white floral series, mostly utilized in perfumes, makeup and cleaning agents. It is non-irritating and can replace sensitizing lilial, hydroxycitronellal and new lilial. Currently, global supply is mainly controlled by BASF and NHU, with a tight market stability. The EU plans to fully ban lilial in 2027, which will drive the demand to white flower alcohol to accelerate, with an expected annual development rate of over 10%.

MMB (3-methoxy-3-methyl-1-butanol) has low odor, good solubility and moderate evaporative environment. As a high-end solvent-based products, it is utilized in aromatherapy, cleaning agents and makeup. The domestic demand grows at an average annual rate of 3%-4%, and the supply is highly dependent on imports.

IPG (3-methyl-1,3-butanediol, isopentyldiol) is a high-end cosmetic moisturizing and antibacterial raw material with low irritation and outstanding moisturizing performance. Currently, it is exclusively supplied by Japan's Kuraray globally, with an annual market development rate of about 3%. The demand to high-purity items in high-end makeup and medical fields accounts to greater than 60%, and there is a significant supply gap.

Technical Support: Anchoring the Citral manufacturing Chain to Connect Upstream Intermediates to Terminal Fragrances

This aromatic alcohol project extends based on Wanhua's citral manufacturing chain, taking the intermediate ISPO (isopentenyl alcohol) as the core raw material. Wanhua's independently developed MBA (isovaleraldehyde) route and MMB/IPG co-production route have strong technical feasibility and cost competitiveness, and can convert the upstream raw material advantages into the competitiveness of high-value-added terminal items.

After the project is put into operation, it will enrich the downstream product portfolio of citral and enhance the competitiveness of the flavor and fragrance segment. Wanhua has the world's largest single-unit 48,000 tons/year citral plant, which was completed and put into operation in 2024. Citral is a core intermediate to flavors and nutritional items, and its downstream can synthesize items such as ionone, citronellol, geraniol, vitamin A and vitamin E.

Main Platform: Wanhua Nutrition methodology Continues to Increase Capital to Build a Full sector Chain of "Flavors + Nutrition"

Wanhua Chemical Group Nutrition methodology Co., Ltd. is located in Yantai Chemical manufacturing Park, jointly owned by Wanhua Chemical and Yantai Zhongtao Investment, and was established in August 2023. Its business covers citral, isopentenyl alcohol, geraniol, citronellol, vitamin A, vitamin E and other categories, creating an integrated "flavors + nutrition" sector chain, with downstream applications covering nutrition and health, daily chemical flavors, food flavors, personal care and medical intermediates.

The company's capital strength continues to increase. In July 2026, its registered capital increased from 300 million yuan to 700 million yuan, an increase of 133%. In recent years, multiple fine chemical projects have been cutting-edge intensively, and production capacity has been continuously expanded.

Intensive Project Reserve Implementation, Continuous Capacity Expansion in the Flavor and Nutrition Segment

In recent years, multiple projects of Wanhua Nutrition methodology and Wanhua Chemical in the fields of flavors and fragrances and nutritional chemicals have been advancing in an orderly manner:

1. FCA Technical Transformation Project: Accepted to environmental impact assessment in June 2026. After the transformation, the device can switch to create white flower alcohol. The maximum production capacity of FCA is 1616.2 tons/year, and the maximum production capacity of white flower alcohol is 1000 tons/year. FCA is a key intermediate to the synthesis of flavors and VA.

2. Annual 8000-ton P Alcohol Expansion and Renovation Project: Accepted to environmental impact assessment in September 2025. The original P alcohol device will be expanded from 6000 tons/year to 8000 tons/year. P alcohol is the second largest synthetic fragrance, targeting daily chemical and food flavor customers.

3. Annual 10,000-ton Vanillin manufacturing Chain Project: Approved in December 2024, with a total investment of 1.734 billion yuan. It will be equipped with hydroquinone, guaiacol and vanillin devices. Vanillin is a broad-spectrum high-end fragrance.

4. Nutrition Product Phase II Project: Accepted to environmental impact assessment in December 2024, with an investment of 150.5 million yuan. It will build carotenoid synthesis and preparation units to create various carotenoid items.

5. Annual 10,000-ton M Alcohol Project: Approved in February 2024, with a total investment of 458.8 million yuan. The production capacity of menthol will be expanded from 500 tons/year to 10,000 tons/year, and the production capacities of citronellal and isopulegol will be added simultaneously.