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 Industry Positioning

huizhou Renxin New Materials Co., Ltd. recently held a groundbreaking ceremony for 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 7.8 billion yuan (about 1.1 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).

Renxin New Material is the first local listed high-tech enterprise in Daya Bay Petrochemical Zone. It was listed on the Growth Enterprise Market of Shenzhen Stock Exchange in July 2023. According to Zhuochuang Information data, the company currently has an annual production capacity of 480000 tons of polystyrene series products, and is the second largest polystyrene polymer new material manufacturer in China and the first in South China. 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.

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. China accounts for 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 for 56.27 per cent of the global market share and is expected to continue to expand at a compound annual growth rate of 5.48 per cent from 2025 to 2030. 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.

Optical grade PMMA is known as the "plastic queen", with high transparency (light transmittance over glass), weather resistance, high strength and other excellent properties, is the highest light transmittance of polymer transparent materials products. At present, China's annual import volume of optical grade PMMA is about 200000 tons, mainly relying on overseas enterprises such as Japan's Mitsubishi Chemical, Sumitomo Chemical and France's Arkema. MS copolymer has the characteristics of low water 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 enterprises such as Taiwan's Chimei Industry. 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 advanced technology at home and abroad, and the main raw materials come from enterprises in Daya Bay Petrochemical Park. A letter of intent has been signed with CNOOC Shell for the supply of ethylene and butadiene raw materials, and a letter of intent for cooperation with CNOOC Huizhou Petrochemical. This closed-loop mode of industrial chain in the park has significant advantages in raw material cost and supply stability, and is expected to establish a cost moat in the global market competition.

Downstream Applications and Industry Collaboration

after the project is put into operation, it will effectively support a number of high-end manufacturing industries in South China and even the Asia-Pacific market. In the automotive field, HIPS is widely used in automotive interiors and exterior parts, and PMMA is indispensable in optical components such as car lampshades. The rapid development and lightweight trend of the global automotive industry, especially new energy vehicles, has driven the demand for high-end polystyrene materials to continue to grow. The China Association of Automobile Manufacturers predicts that China's car sales will reach 32.9 million in 2025, an increase of 4.7 percent over the same period last year, of which the penetration rate of new energy vehicles will continue to increase, and the demand for transparent plastics such as PMMA will maintain rapid growth.

In the electronic information industry, 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 industry chain in the world, and is the main production base of consumer electronics and display panels in the world. With the continuous growth of the output of smart phones, smart home appliances, and IoT devices, and the demand for high-purity polystyrene for 5G communication equipment, the project will provide a stable supply of domestically produced high-end raw materials for the regional industrial chain.

In the field of building and thermal insulation materials, expandable polystyrene (EPS) is widely used in green building and energy-saving renovation due to its excellent thermal insulation performance. As the global demand for building energy efficiency increases, the demand for high-performance insulation materials is growing rapidly.

Implications for Global Supply Chain Practitioners

for 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 7.8 billion yuan/year, it will not only reduce the dependence of downstream enterprises on imported materials from Japan, Taiwan and other places, but also drive the demand for upstream raw materials and the development of downstream processing industry. There are cooperation opportunities in all links of the industrial chain.

It is suggested that practitioners in the global chemical industry chain should pay close attention to the following points: first, the release of China's optical grade PMMA/MS capacity will change the global pricing system and may put price pressure on existing suppliers; second, the success of Renxin project may trigger more Chinese enterprises to enter the high-end polystyrene field and accelerate the industry 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 more complete industrial cluster will be formed in South China, which will increase the possibility of providing one-stop solutions for global buyers.

From the perspective of the development trend of the global chemical industry, sustainable development and circular economy are reshaping the industry pattern. Although traditional polystyrene is facing environmental pressure, advances in chemical recycling technology (such as Agilyx Technology in Japan, recycling plants of European companies such as INEOS Styrolution) are opening new paths for the industry. As a local leader in China, Renxin New Material's technological innovation and capacity expansion are not only a microcosm of the upgrading of China's chemical industry, but also an important part of the reconstruction of the global polystyrene industry chain.