PetroChina Guangxi Petrochemical 400000 Tons EVA Project Launched: Reshaping Asia-Pacific High-end EVA Supply Pattern

Project core elements and market positioning

on January 16, 2025, PetroChina Guangxi Petrochemical Company officially started the construction of EVA production plant with a total production capacity of 400000 tons/year. The project adopts a dual route layout: 300000 tons/year tubular EVA plant and 100000 tons/year kettle H-EVA plant. The company's deputy general manager Han Hongda attended the commencement ceremony.

Technology Selection and Engineering Architecture

the project uses the Leander Basel LUPOTECH technology license, which is the mainstream process platform for the current global EVA production. The project implementation adopts the international-local mixed mode: Italy Tecnimonte (Tecnimont) is responsible for the process package expansion and the detailed design of the high-pressure system, Daqing Huanqiu undertakes the overall design and low-pressure system engineering, Daqing Engineering Company implements EPC construction, and Qingdao Huayou provides supervision services. This architecture optimizes the project cost structure while ensuring technical standards.

Construction schedule

the tubular method device is planned to be put into production in December 2027, and the kettle method device is planned to be put into production in February 2028, with a construction period of 24-26 months, which is in line with the standard construction period of world-class EVA devices.

Product Portfolio and End Market Analysis

PV-grade EVA: a key variable for rebalancing supply and demand

the 300000-ton tubular method device focuses on photovoltaic encapsulation grade EVA(VA content is usually 28-33%), and the product specifications cover the high-end requirements of core indicators such as light transmittance, weather resistance and crosslinking degree. At present, China's photovoltaic module production capacity exceeds 600GW, corresponding to an annual demand of about 150-1.8 million tons of EVA, but 30-40% of high-quality photovoltaic grade EVA still depends on imports (mainly from Korean and Japanese suppliers). After the Guangxi petrochemical project is put into operation, it will increase the self-sufficiency rate of China's photovoltaic grade EVA by about 15-20 percentage points, significantly improving the resilience of the supply chain.

For overseas traders, this means that after 2028, the flow of EVA trade in the Asia-Pacific region may undergo a structural adjustment: China will shift from a net import region to a regional supply hub, and the EVA supply pattern in emerging photovoltaic manufacturing markets such as Southeast Asia and India will be reconstructed.

Special H-EVA: Breakthrough in high value-added market segments

the 100000-ton kettle type device focuses on high VA content special EVA(VA content> 40%), and the application scenarios include:

• wire and cable: New energy vehicles, high-voltage cables, submarine cables and other areas that require excellent insulation and temperature resistance.
• Foaming material: Lightweight applications such as sports shoes midsole, automotive interiors, high-end packaging
• medical Devices: Infusion bags, catheters and other products with strict requirements on biocompatibility

at present, the global special EVA market is about 800000 tons/year, mainly controlled by DuPont, ExxonMobil, Mitsui Chemicals and other international giants. Guangxi Petrochemical's entry will break China's technology gap in the high-end specialty EVA field, provide downstream manufacturers with localization alternatives, shorten supply chain response time and reduce procurement costs.

Industry Impact and Supply Chain Reconfiguration

triple Impact on Global EVA Market

1. capacity pattern adjustment after the project is put into operation, China's total EVA production capacity will exceed 3 million tons/year, accounting for more than 40% of the global production capacity from the current 35%, further consolidating China's position as the world's largest EVA producer.
2. trade flow reconstruction: It is expected to reduce China's EVA imports from Northeast Asia (South Korea, Japan) by about 20-300000 tons/year, while increasing the export potential to Southeast Asia and South Asia markets.
3. price transmission mechanism: The release of large-scale local production capacity will enhance the voice of Chinese enterprises in the Asia-Pacific EVA pricing, may reduce the premium space of imported products, and promote the regional price system to become more reasonable.

Implications for Overseas Practitioners

guangxi petrochemical project is a typical case of the evolution path of "import substitution-technology upgrading-export orientation" in China's chemical industry. For overseas traders and supply chain practitioners, it is necessary to pay close attention to the rebalancing process of supply and demand in China's EVA market from 2027 to 2028, and adjust procurement strategies and logistics networks in advance. At the same time, the project demonstrates the ability of China's large state-owned enterprises to quickly enter the field of high-end chemical materials through the combination of technology introduction and engineering localization. This model may be replicated in other specialty chemical fields and is worthy of continuous tracking.