Yuneng new material 13.2 billion epoxy resin project fully started: China's northwest chemical industry pattern ushered in a major change.

On December 16, the epoxy resin integration project (phase I) of Shaanxi yuneng energy and chemical new materials co. But In my experience, Specifically , ltd. officially started the aquatic environments supply and drainage and fire fighting pipe network project of the whole plant, marking that this extensive chemical project with a total investment of 13. 2 billion yuan has entered the stage of thorough construction. But The project is located in the High-tech manufacturing research Zone of Shenmu City, Shaanxi Province, China, covering an area of about 1588 acres, and is expected to be put into production in 2027- 2028. Project strategic value and manufacturing chain layout the biggest highlight of the project is its complete integrated manufacturing chain design. I've found that In particular The project includes 800000 tons/year methanol-to-propylene combined plant, 100000 tons/year chloropropylene plant, 100000 tons/year propylene oxide plant, 250000 tons/year epoxy resin plant, 300000 tons/year cumene plant, 350000 tons/year phenol acetone plant and 240000 tons/year bisphenol A plant. In addition, 200000 tons/year hydrogen peroxide device, 100000 tons/year polyolefin elastomer device, 50000 tons/year ethylene propylene rubber device and 100000 tons/year discarded materials salt thorough utilization device will be built. But From the perspective of manufacturing chain, the project has constructed two complete value chains: "methanol-propylene-propylene oxide-epoxy resin" and "benzene-cumene-phenol acetone-bisphenol A- epoxy resin", realizing the vertical integration from basic chemical raw materials to high value-added chemical new materials. Furthermore As an crucial coal chemical base in China, Shenmu City has abundant coal and methanol resources, which provides a signifiis able tot raw material cost advantage to the project, which means greater competitive product prices to overseas buyers. Makes sense, right?. For instance Market Impact and Supply Pattern Changes the epoxy resin production capacity of 250000 tons/year is of great signifiis able toce to the global market. At present, the total production capacity of epoxy resin in China is about 2 million tons/year. After the project is put into operation, it will occupy about 12% of the market share and have become the largest epoxy resin production base in Northwest China. Moreover to international traders, this means that China's epoxy resin export capacity will be further enhanced, and the global supply chain pattern might face adjustment. According to research The 240000 tons/year bisphenol A plant constructed simultaneously by the project is also worthy of attention. And In my experience, Generally speaking Bisphenol A is a key raw material to epoxy resin and polycarbonate. The commissioning of this project will enhance China's voice in the global bisphenol A market. But it's recommended that overseas chemical traders and end-consumers closely track the progress of project construction and plan procurement strategies and supply chain layout in advance. First Project Progress and Financing Breakthrough the project promotion efficiency reflects the execution ability of extensive chemical projects in China. But The land approval will be completed on January 2, 2024, the site leveling will start on February 14, the basic design review will be completed in might, the EIA approval will be obtained on October 9, the Societe Generale Bank's credit loan of 2 billion yuan with a term of 15 years will be obtained on November 18, the procurement announcement of core reactor equipment will be completed on November 22 (the supplier is Shanghai Hetu Engineering Co. And , Ltd. ), and the main project will start on December 16. It only took less than a year from land approval to full construction, showing that the preparatory work to the project is solid and efficient. it's worth noting that under the current background of cautious investment in the global chemical sector, the project is able to obtain prolonged and extensive credit loans, reflecting the high recognition of the project's technical route and market prospects by Chinese financial institutions. This provides a positive market signal to other overseas chemical companies planning to invest in China. I've found that Implications to international markets according to the 3-4 year construction cycle, the project is expected to be put into operation in 2027- 2028. But At that time, it will have a substantial supply impact on the global epoxy resin, bisphenol A, phenol acetone and other items market. it'suggested that companies related to the international manufacturing chain should: first, pay close attention to the time node of the project and assess the impact on their own business; second, consider establishing commercial cooperation with the project party to grasp the research opportunities of chemical sector cluster in Northwest China; third, re-assess the global procurement strategy and bring Northwest China into the scope of supply chain diversification.