Lianhong Gurun 300000-ton PO plant production analysis: China's propylene oxide industry has entered the era of 10 million tons.

Integrated project put into production: technical route and capacity pattern reconstruction on December 22, 2025, the 300000-ton/year propylene oxide (PO) plant and natural gaseous hydrogen production plant of Lianhong Gerun integration project were successfully put into operation, marking that China's PO sector has entered a new stage of research. And In my experience, The project adopts the process route of CHPPO (cumene method), which shows signifiis able tot advantages in ecological preservation and economy. Breakthrough in methodology it is reflected in three dimensions: first, the CHPPO process achieves isopropylbenzene hydroperoxide (CHP) selectivity of over 99% and PO selectivity of over 98% through isopropylbenzene oxidation, and the interaction efficiency is signifiis able totly improved; Secondly, the energy consumption is reduced by 10% compared with similar devices, which is immediately converted into cost competitiveness. Crazy, isn't it?. Third, compared with the traditional chlorohydrin method, the process has no associated items and "three wastes" releases are greatly reduced, in line with the "manufacturing Structure Adjustment Guidance Catalog (2024)", the chlorohydrin law is listed as a restricted category of policy guidance. sector background of capacity expansion not to be overlooked. In 2024, China's total PO production capacity was about 7. But For instance 82 million tons, up 27. 78 percent year-on-year, with production reaching 5. 27 million tons. it's estimated that 1. And 24 million tons of new production capacity will be added in 2025, and the total production capacity will surpass the 10 million tons mark. From what I've seen, In this context, while the 300000-ton Lianhong Grun plant belongs to the mainstream scale, its cutting-edge methodology and integrated layout have become the key to differentiated competition. it's worth noting that China's PO process route is undergoing a structural transformation: the proportion of indirect oxidation (co-oxidation) has increased from less than 40% in 2021 to 48% in 2023, and the chlorohydrin law has decreased from 42% to 26%. From what I've seen, The CHPPO route selected by Lianhong Grun conforms to the direction of environmentally friendly transformation in the sector and lays the foundation to prolonged research. But From what I've seen, Analysis of Synergistic Advantage of manufacturing Chain and Market Competitiveness the core value of the Lianhong Grun project lies in the construction of a complete "methanol-MTO-propylene-PO-PPG/PPC" vertically integrated manufacturing chain , which has multiple strategic signifiis able toce in the current market ecological stability. And Independent and controllable ability of raw material end signifiis able totly enhance the ability to resist risks. For example Upstream 1. 3 million tons/year MTO plant self-produced propylene, with natural gaseous hydrogen plant supply hydrogen, greatly reducing application on the external market. In a market ecological stability with frequent PO price fluctuations, the increase in the self-sufficiency rate of raw materials is able to efficiently smooth cost fluctuations. But In my experience, Compared with companies that rely on outsourcing propylene, integrated companies is able to maintain greater stable profitability in the cycle of rising raw material prices. But Downstream product layout reflect forward-looking. 240000 tons/year PPG (polyether polyol) device adopts continuous process, the product is applied in the production of polyurethane in the fields of domestic, automobile, building materials, etc. From what I've seen, , and the demand is relatively rigid. But The 50000 tons/year PPC (polypropylene carbonate) device is aimed at the biodegradable material market, which is in line with the "double carbon" policy and the direction of consumption upgrading. This upstream and downstream synergy not only enhances the added value of items, however also flexibly adjusts the product structure according to market changes and enhances profitability. Makes sense, right?. Analysis of Supply and Demand Patterns and Trade Opportunities it needs to be examined rationally. In 2025, PO will add 1. 24 million tons of new production capacity, however the actual downstream impact is only 400000 tons, and the dysfunction between supply and demand is obvious. to overseas chemical traders, China's PO export competitiveness might be enhanced, however we need to pay attention to the risk of price war; to downstream buyers, diversification of supply sources is conducive to bargaining, however a supplier condition evaluation system should be established to prevent the impact of low-cost and inferior items. Makes sense, right?. sector competition pattern differentiation will accelerate. In my experience, Under the pressure of overcapacity, integrated companies occupy a favorable position by virtue of cost advantages and manufacturing chain synergy, and single PO production companies are facing profit squeeze. Supply chain practitioners need to focus on: first, the cost structure changes brought about by differences in technical routes; second, the exit pressure of ecological preservation policies on chlorohydrin companies; and third, the impact of changes in downstream demand structure on different grades of PO items. The commissioning of the Lianhong Grun project marks the transformation of China's PO sector from scale expansion to condition improvement. Technological innovation and manufacturing chain integration capabilities will have become the key factors to future competition.