2 billion investment! China's Shandong Zhemei 160000 tons of optical grade PMMA project to be put into production

Project core elements and investment logic

the 160000-ton/year optical grade PMMA project of Shandong zhemei new materials co., ltd (established in 2024) is about to be put into production, which is an important window to observe the localization process of China's high-end chemical materials. With a total investment of 2 billion yuan, the project is located in Shandong Hekou Blue Economic Industrial Park, which is located at the intersection of the Yellow River Delta and Shandong Peninsula, enjoying the dual advantages of policy and logistics.

Capacity release rhythm: the project adopts the phased construction strategy, the first phase and the second phase each 80000 tons/year, with a total area of about 300 mu. The production process adopts the bulk polymerization method, and the rapid production is realized by transforming the existing facilities. The product is located in high-end optical grade PMMA, covering the display panel light guide plate, automotive optical components (taillights, lidar), AR/VR equipment, communication fiber optics, new energy vehicle lighting, flexible photovoltaic and other high value-added application scenarios, and simultaneously carry out MMA circular economy research and development.

Technical parameter correlation: The core competitiveness of optical PMMA lies in its performance index-light transmittance ≥ 92% (only 85% for ordinary glass), low birefringence, strong weather resistance, and density only half of glass but excellent impact resistance. These characteristics make it a key material in emerging areas such as 5G communications, consumer electronics, medical equipment (PMMA bone cement), and smart homes, and market demand continues to rise with new display technologies and automotive lightweight trends.

Global Supply Pattern Restructuring and China's Opportunities

market concentration analysis: The global PMMA industry has long been dominated by the five giants of Roma, Chi Mei, Mitsubishi, Sumitomo and Arkema, with a total share of more than 70% of production capacity. These enterprises master the whole industry chain technology from raw material refining to application development, form a dual monopoly of technology and market in the field of high-end optical grade PMMA, and have strong bargaining power on the downstream.

China's current market situation: China is the world's largest producer and consumer of PMMA, but the imbalance in production capacity structure is obvious-excess low-end products, high-end optical grade is heavily dependent on imports. The existing production capacity is dominated by foreign-funded enterprises, while local enterprises are in a decentralized pattern of "small scale and large quantity. With the transfer of the global display industry to China and the annual sales of new energy vehicles exceeding the level of 10 million vehicles, the supply and demand gap of high-end PMMA continues to expand.

Breakthrough: In recent years, Wanhua Chemical, Suzhou double-image breakthrough light guide plate-level PMMA technology, Jiangxi Yiliang to achieve 5G antenna cover special material mass production, marking the beginning of Chinese enterprises in the high-end field to break the technical blockade. These breakthroughs provide technical support for subsequent capacity expansion.

Explosive growth of production capacity: by the end of 2024, China's PMMA production capacity is about 735350 tons/year, but more than 1.5 million tons/year of new production capacity is under planning and construction, and the total production capacity is expected to exceed 2.5 million tons (an increase of more than 240). What is more noteworthy is the evolution of regional layout -87.71 per cent of existing capacity is concentrated in East China, but new capacity is beginning to spread across the country, with Shandong, Southwest and Northeast increasing their share, which will optimize the supply chain network, reduce logistics costs and improve market response efficiency.

Impact on overseas markets: The explosive growth of PMMA capacity in China will reshape the global supply chain. On the one hand, large-scale production capacity may depress the price of low-end products and affect the existing trade pattern; on the other hand, if high-end optical products achieve technological breakthroughs, it will weaken the monopoly premium of Japanese and Korean enterprises and provide more procurement options for downstream customers. For overseas traders, it is necessary to pay close attention to the technical level of China's new production capacity, product certification progress and export willingness, and adjust the procurement strategy and inventory cycle in a timely manner.

The commissioning of the 160000-ton project in Shandong Zhejiang and the United States is not only a microcosm of China's PMMA industrial upgrading, but also a signal of the adjustment of the global supply pattern. Whether it can achieve breakthroughs in technology, quality and cost will directly affect the competitive situation in the international market.