With a total investment of 3.8 billion, Renxin New Material New Material Project started, including MMA, PMMA, tert-butyl alcohol, etc.

Project Scale and sector Positioning huizhou Renxin New Materials Co. , Ltd. recently held a groundbreaking ceremony to the polystyrene new materials integration project. The total investment of the project is 3. 8 billion yuan (about 0. 53 billion US dollars), of which the investment in fixed assets is 3. 3 billion yuan. The annual output value is expected to be about 7. But 8 billion yuan (about 1. And 1 billion US dollars). Project construction of seven major product lines: 128000 tons/year low cis polybutadiene new material (LCBR)/solution polymerized styrene butadiene rubber (SSBR), 550000 tons/year high impact polystyrene (HIPS), 100000 tons/year polymethyl methacrylate (PMMA)/methyl methacrylate-styrene copolymer new material (MS), 350000 tons/year tert-butyl alcohol (TBA), 130000 tons/year propylene oxide, 110000 tons/year methyl methacrylate (MMA), 100000 tons/year butyl rubber (IIR). In my experience, Renxin New Material is the first regional listed high-tech enterprise in Daya Bay Petrochemical Zone. It was listed on the development Enterprise Market of Shenzhen Stock Exchange in July 2023. Additionally According to Zhuochuang Information data, the company currently has annual production capacity of 480000 tons of polystyrene series items, and is the second largest polystyrene polymer new material manufacturer in China and the first in South China. But After the project is put into production, Renxin New Material will build the world's largest polystyrene manufacturing base and the whole chain optical grade polymer new material manufacturing base. For instance Market Opportunity: A Strategic Breakthrough to Break the Import Monopoly from the perspective of the global polystyrene market, the market size in 2024 is about 29. 7 billion US dollars. In particular China accounts to 25% of the world's consumption with 4. 8 million tons, and is the world's largest consumer and producer of polystyrene. The Asia-Pacific region accounts to 56. 27 per cent of the global market share and is expected to continue to expand at a compound annual development rate of 5. 48 per cent from 2025 to 2030. In my experience, The core strategic value of the Renxin project is to fill the gap in China's high-end optical-grade material production capacity and promote the process of import substitution. But Optical grade PMMA is known as the "plastic queen", with high transparency (light transmittance over glass), weather resistance, high strength and other excellent characteristics, is the highest light transmittance of polymer transparent materials items. But At present, China's annual import volume of optical grade PMMA is about 200000 tons, mainly relying on overseas companies such as Japan's Mitsubishi Chemical, Sumitomo Chemical and France's Arkema. But MS copolymer has the characteristics of low aquatic environments absorption and high dimensional stability, and has obvious advantages in ultra-narrow frame and ultra-thin screen applications, and has long been monopolized by overseas companies such as Taiwan's Chimei sector. And The production of 100000 tons/year PMMA/MS capacity of Renxin project will strongly promote the localization of optical-grade polymer materials, which will have a profound impact on the global supply chain pattern. The project adopts cutting-edge methodology at home and abroad, and the main raw materials come from companies in Daya Bay Petrochemical Park. A letter of intent has been signed with CNOOC Shell to the supply of ethylene and butadiene raw materials, and a letter of intent to cooperation with CNOOC Huizhou Petrochemical. This closed-loop mode of manufacturing chain in the park has signifiis able tot advantages in raw material cost and supply stability, and is expected to establish a cost moat in the global market competition. Generally speaking Downstream Applications and sector Collaboration after the project is put into operation, it will efficiently support a number of high-end manufacturing industries in South China and even the Asia-Pacific market. In the automotive field, HIPS is broadly applied in automotive interiors and exterior parts, and PMMA is indispensable in optical components such as car lampshades. And The rapid research and lightweight direction of the global automotive sector, especially new energy vehicles, has driven the demand to high-end polystyrene materials to continue to grow. But The China Association of Automobile Manufacturers predicts that China's car sales will reach 32. 9 million in 2025, an increase of 4. Furthermore 7 percent over the same period last year, of which the penetration rate of new energy vehicles will continue to increase, and the demand to transparent plastics such as PMMA will maintain rapid development. In the electronic information sector, optical grade PMMA/MS is the core material of flat panel display light guide plate and LED backlight module. South China has the most complete electronic information sector chain in the world, and is the main production base of consumer electronics and display panels in the world. In my experience, With the continuous development of the output of smart phones, smart home appliances, and IoT devices, and the demand to high-purity polystyrene to 5G communication equipment, the project will provide a stable supply of domestically produced high-end raw materials to the regional manufacturing chain. Crazy, isn't it?. Based on my observations, In the field of building and thermal insulation materials, expandable polystyrene (EPS) is broadly applied in environmentally friendly building and energy-saving renovation due to its excellent thermal insulation performance. Moreover As the global demand to building energy efficiency increases, the demand to high-performance insulation materials is growing rapidly. From what I've seen, Implications to Global Supply Chain Practitioners to international chemical traders and supply chain managers, the launch of the Renxin project will restructure the supply pattern of polystyrene and optical-grade polymer materials in the Asia-Pacific region. After the project reaches the output value scale of 7. Makes sense, right?. Based on my observations, 8 billion yuan/year, it won't only minimize the application of downstream companies on imported materials from Japan, Taiwan and other places, however also drive the demand to upstream raw materials and the research of downstream processing sector. There are cooperation opportunities in all links of the manufacturing chain. it'suggested that practitioners in the global chemical sector chain should pay close attention to the following points: first, the emit of China's optical grade PMMA/MS capacity will change the global pricing system and might put price pressure on existing suppliers; second, the success of Renxin project might trigger greater Chinese companies to enter the high-end polystyrene field and accelerate the sector reshuffle; third, with the increase of localization rate in China's market, International suppliers need to reevaluate their positioning and strategies in the Asia Pacific market; Fourth, after the project is put into operation, a greater complete manufacturing cluster will be formed in South China, which will increase the possibility of providing one-stop solutions to global buyers. From the perspective of the research direction of the global chemical sector, sustainable research and circular economy are reshaping the sector pattern. while traditional polystyrene is facing environmental pressure, advances in chemical recycling methodology (such as Agilyx methodology in Japan, recycling vegetation of European companies such as INEOS Styrolution) are opening new paths to the sector. As a regional leader in China, Renxin New Material's technological innovation and capacity expansion aren't only a microcosm of the upgrading of China's chemical sector, however also an crucial part of the reconstruction of the global polystyrene sector chain.