The acceptance of the high-end EVA pilot project in Sirbang: a key breakthrough in the independent innovation of China's chemical industry.

Project Overview and Strategic Positioning

on October 15, 2025, the 800-ton/year high-end EVA new material pilot project (phase I) of Jiangsu Sirbang Petrochemical Co., Ltd. completed the independent acceptance of environmental protection, marking China's important progress in the field of high-end polymer materials. The project is located in the Lianyungang National East-Central-West Regional Cooperation Demonstration Zone, and has completed commissioning and entered trial production in August 2025.

It is worth noting that this is not an ordinary EVA (ethylene-vinyl acetate copolymer) expansion project. The core product of the pilot test is ethylene-vinyl alcohol copolymer (EVOH), which is a high value-added material produced by further alcoholysis of EVA, and its production process parameters are significantly different from conventional EVA. As a wholly-owned subsidiary of Shenghong Group (registered capital of 5.588 billion yuan), Sirbang's move reflects the strategic intention of China's private chemical enterprises to climb to the high end of the industrial chain.

Market Gaps and Supply Chain Pain Points

the current global EVA market is characterized by structural imbalances. In 2024, China's demand for photovoltaic-grade EVA has exceeded 1 million tons and maintained double-digit growth, but the domestic self-sufficiency rate of products with high VA content (vinyl acetate content ≥ 28%) is less than 40%, relying heavily on imports. This mismatch between supply and demand is becoming more and more prominent in the context of the "double carbon" policy to promote the explosive growth of the photovoltaic industry.

For overseas traders and supply chain practitioners, this market pattern means three aspects:

procurement cost pressure import dependence causes downstream photovoltaic, packaging film and other enterprises to face higher raw material costs and exchange rate fluctuations, weakening the price competitiveness of Chinese manufacturing in the global market.

Fragile supply chain resilience long delivery cycles and limited supplier selection make the industry chain less resilient, and any international trade frictions or logistics disruptions could trigger a supply crisis.

Customization capacity is limited imported products are often difficult to meet the downstream application needs of rapid iteration, restricting technological innovation in areas such as photovoltaic modules and high-end packaging.

Chain Effect Analysis of Industrial Chain

the advancement of the Sirbon project will have a multi-dimensional impact on the chemical industry chain:

upstream Raw Material Market: The increase in domestic high-end EVA production capacity will directly drive the demand for basic chemical raw materials such as ethylene and vinyl acetate monomer (VAM). Considering that China is already the world's largest ethylene producer, this will further consolidate its dominant position in the petrochemical industry chain. For overseas enterprises engaged in ethylene and VAM trade, it is necessary to pay close attention to the impact of changes in Chinese market demand on global pricing.

midstream manufacturing pattern: Although the pilot scale of 800 tons/year is limited, if the technical verification is successful, Sirbon plans to build a 10,000-ton or even larger industrial plant in 2026-2027. This will directly impact the existing import pattern, Japan, South Korea, the United States and other traditional EVA suppliers in the Chinese market share may face compression.

Downstream Application Expansion the realization of localized supply will enable Chinese PV companies to gain greater cost advantages and supply flexibility, and further consolidate their leading position in the global PV industry chain. This will have a profound impact on the global renewable energy market.

Time windows and market opportunities

the time node for the project to complete commissioning in August 2025 is of strategic significance. At present, the global photovoltaic industry is in a new round of expansion cycle, countries "carbon neutral" commitment to promote photovoltaic installed demand continues to rise. If the performance of the pilot product meets the standard and is recognized by mainstream photovoltaic enterprises, Sirbon is expected to achieve a rapid leap from technical verification to commercial mass production in the next 2-3 years.

For overseas chemical practitioners, this trend suggests three directions of concern:

technical cooperation opportunities the technological catch-up of Chinese enterprises in the field of high-end polymers may lead to the demand for cooperation in the fields of equipment, catalysts and process optimization;

market rebalancing the need to re-evaluate the supply strategy of the Chinese market, from purely export to localized services or differentiated product positioning;

supply Chain Restructuring-- The increase in China's high-end EVA self-sufficiency rate will change the flow of global chemicals and affect the demand for logistics services such as shipping and warehousing.