Xinpu Chemical 7.187 billion Yuan High-end Chemical Project Approved for Industrial Upgrading and Ushering in Key Layout

On December 24, Taizhou Ecological Environment Bureau approved the environmental impact report of Xinpu Chemical (Taixing) Co., Ltd. Taizhou Xinpu Chemical High-end Chemical Project. The total investment of the project is 7.187 billion yuan (about 1.45 billion US dollars), of which 54.53 million yuan is invested in environmental protection, accounting for 0.76 percent of the total investment. The project covers an area of 746 mu, with new synthetic gas plant (including gas), 500000 tons/year butyl octanol plant, 400000 tons/year polypropylene plant and supporting public and auxiliary facilities.

the project will build 1 set of 62400Nm & sup3;/h synthesis gas plant, 1 set of 500000 tons/year butyl octanol plant, 1 set of 400000 tons/year polypropylene plant, 1 set of 16000Nm & sup3;/h gas separation unit, 1 200000 cubic meter ethane tank and other supporting public and auxiliary facilities. Upon completion, it will have an annual production capacity of 250000 tons of n-butanol, 90000 tons of isobutyraldehyde, 150000 tons of isooctanol, 400000 tons of polypropylene, 205300 tons of oxygen, 433600 tons of nitrogen and 9400 tons of liquid argon.

it is worth noting that the product scheme of the project is flexible and adjustable. Butyraldehyde can be selected according to market conditions for the production of butanol, all or part of the sale of part of the processing, so as to achieve the market-oriented adjustment of capacity allocation.

in 2023, China's production of n-butanol and octanol will be 2.276 million tons and 2.46 million tons, respectively, up 23.97 and 26.54 respectively compared to 2019; in 2024, production will further increase to 2.655 million tons and 2.865 million tons, with capacity utilization rates above 80%.

Butyl octanol is widely used downstream, and plasticizers and butyl acrylate are the main application areas. In 2024, China's butyl octanol production capacity will reach 6.92 million tons, and the demand will be 5.7822 million tons, an increase of 10.1. In 2024, China's isooctanol export volume increased by 249, a new high in the past five years, mainly due to the new high level of domestic production capacity and total output after production, and China has a certain cost advantage in octanol production.

However, the industry is also under pressure to expand capacity. From 2025 to 2026, the butyl alcohol plant will be put into production. If all the new production capacity is put into production as scheduled, the butyl alcohol production capacity will exceed 11 million tons/year by the end of 2026, the phenomenon of overcapacity of positive butanol will gradually appear, and the profit space will be further compressed.

by the end of 2023, China's polypropylene production capacity reached 39.54 million tons/year, up 16.2 percent year-on-year; in 2023, the output was 32.25 million tons, up 7.0 percent year-on-year, and the annual average operating rate was about 81.6 percent. It is estimated that by 2025, China's polypropylene production capacity will reach 52.34 million tons/year.

From the downstream field, the downstream of polypropylene is mainly the polypropylene product itself, accounting for about 70% of the total consumption of propylene. Propylene oxide, butyl octanol, acrylonitrile, etc. are also important downstream applications of propylene, accounting for about 7%, 7%, 7%, respectively. China is a net importer of polypropylene, with 2.697 million tons of polypropylene imported and 1.149 million tons exported in 2023. In the future, the demand growth of polypropylene in China will still be mainly driven by domestic demand, and the apparent consumption is expected to reach 43.05 million tons by 2025.

after the completion of Xinpu Chemical's propane dehydrogenation to propylene project, it will provide raw material support for high-end new material projects. At the same time, it will also provide raw materials for acrylic acid, propylene oxide and other propylene customers in the park, realizing "mutual raw material, partition wall supply and pipeline transmission". 78% of the products will be self-digested without leaving the park gate.

Wang Xiaohua, general manager of Xinpu Chemical Development Research and Development Center, said: "Xinpu Chemical will gradually transform and upgrade from basic chemicals and liquid chemicals to new materials. It is estimated that Xinpu Chemical's turnover will exceed 30 billion by 2027". The installation of equipment and steel structure for the propane dehydrogenation to propylene project is nearing completion. It is planned to be put into trial operation by the end of 2025, and it is estimated that the annual sales volume will increase by 5 billion yuan.

The approval of the high-end chemical project marks an important step in the industrial transformation and upgrading of Xinpu Chemical. Under the trend of high-end and green development of the global chemical industry, the project will provide a demonstration for the high-quality development of China's chemical industry by building a complete industrial chain and enhancing the added value of products. Although facing the risk of overcapacity in the future, enterprises with the advantages of the whole industry chain, the advantages of technology cost and the vision of globalization will still occupy a favorable position in the market competition.