Wanhua Chemical 1.5 million Tons/Year MDI Technological Transformation and Capacity Expansion Project Officially Approved

Project core points and strategic significance

Fuzhou Ecological Environment Bureau recently approved the 1.5 million-ton/year MDI technical transformation and expansion integration project of Wanhua Chemical (Fujian) Isocyanate Co., Ltd., which is a major capacity adjustment in the global MDI industry. The project adopts technological transformation rather than new construction mode, upgrading the existing 800000 tons/year production capacity to 1.5 million tons/year, a net increase of 700000 tons/year production capacity, supporting the addition of 340500 tons/year hydrochloric acid and 2600 tons/year methanol. The project is located in the reserved land of the existing plant in Fuzhou Jiangyin Port City Economic Zone and is planned to be put into operation in the second quarter of 2026.

the cost advantage of the technological transformation path is significant: compared with new projects, the technological transformation scheme makes full use of the existing plant area, public works and infrastructure, which can save 30-40% of the investment cost and shorten the construction period by 6-12 months. The core transformation focuses on MDI refrigerants, condensation, photochemistry, separation and other key devices, and doubles production capacity through equipment upgrades and process optimization, reflecting Wanhua's deep accumulation in the field of chemical technology. The design of supporting hydrochloric acid and methanol production capacity shows a high degree of synergy in the chlor-alkali-isocyanate industry chain, and the by-product hydrochloric acid can be supplied to the downstream chlorine chemical industry, forming a circular economy model.

Global Capacity Pattern and Market Impact

As of the end of 2024, Wanhua Chemical's MDI has a total production capacity of 3.8 million tons/year. After the Fujian project is put into operation, it will exceed 4.5 million tons/year, further consolidating its position as the world's number one supplier. As a key raw material for polyurethane hard foam (building insulation, cold chain insulation) and some soft foam applications, market demand is deeply bound to building energy conservation, cold chain logistics, home appliances and automobiles.

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• Supply stability enhanced: leading enterprises to expand production to reduce regional supply constraints risk, for downstream manufacturers to provide more reliable raw material protection
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• Price adjustment mechanism: new capacity will smooth supply and demand fluctuations, reduce extreme market on traders' profits impact
• Regional industrial cluster effect: Fujian coastal chemical park will attract more polyurethane processing and modification enterprises to settle in, forming a complete industrial ecology

for overseas traders, it is necessary to pay close attention to the pace of new capacity release in mid -2026 and its impact on the supply and demand balance in the Asia-Pacific region, adjust inventory strategies and pricing models in advance, and grasp the trade opportunities brought about by structural changes in the market.