The MDI Plant Of Wanhua Chemical Ningbo Plant Is Regenerating, And Its Share In The Global MDI Industry Is Over 30%.

The world's largest MDI manufacturing enterprise, Wanhua chemical group, Limited by Share Ltd (hereinafter referred to as "Wanhua chemical") announced in the evening of January 13th that the MDI phase I installation (400 thousand tons / year) of Wanhua chemical (Ningbo) Co., Ltd., a subsidiary of the company, began to stop and repair in October 26, 2019, and the MDI two phase (800 thousand tons / year) began to stop and repair in November 15, 2019. Up to now, the shutdown inspection of the above MDI devices has been completed and the normal production has resumed.


According to the insiders, Wanhua chemical has continued to expand its business since its listing, forming three major sectors, including polyurethane, petrochemical and fine chemicals. Its revenue growth is more than 30%. With many years of accumulation in the field of polyurethane, the advantages of the company's Polyurethane layout are highlighted, contributing to more than 7 of the company's profits and providing basic performance support.


Data show that Wanhua chemical has the capacity of 2 million 100 thousand tons, ranking first in the world, occupying the global 1/4 product market, forming a scale advantage. At the same time, the company continuously optimizes the production process, reduces the cost of construction and investment by means of technological transformation, reduces the cost of raw materials by integrating the industrial chain layout, and builds core cost advantages; in addition, the company takes isocyanate as the core, expands product categories, carries out a full range of product supply, and sets up a comprehensive solution for product service to solve the platform. With the growth of global Pu demand, Pu profit space is expected to increase steadily over the long term.


Guo Jin securities analyst Pu Qiang said that throughout the Wanhua chemical MDI capacity expansion Road, in addition to the original production line and Yantai Industrial Park, Ningbo phase I and two production lines, most of them rely on technical upgrading to expand production capacity, use domestic instead of imported equipment, enhance the utility efficiency of public equipment, effectively save money, and strengthen the advantages of investment and construction.


观察来看，万华化学在经过产能快速布局，抢占市场后，不断提升公司在聚氨酯尤其是MDI产品生产领域的竞争优势，持续推动公司MDI业务板块的发展：首先，持续高质量研发投入，高度重视技术创新，内化为企业的发展基因，为多领域发展提供技术支撑；其次，依托技改升级迅速高效提升产能，使用国产化设备，提升固定设备的利用效率，实现低成本的产能建造能力，减少成本折旧；第三，万华化学对MDI产线进行了全产业链布局，通过采购煤、盐、苯、LPG等产业链初级原料，基本实现了产线原料的高度自给，降低原料成本；与此同时，万华化学进行园区综合建设，公司在烟台、宁波进行了综合的园区规划和建设，配套园区公共设施，实现了一体化的布局和平台式管理，利用部分材料的循环利用和统一供能，实现能源和材料的高效利用。


Pu Qiang pointed out that at this stage, Wanhua chemical has become the largest MDI supplier in the world, and Future Ltd will continue to expand its capacity expansion. The new capacity of Yantai's 500 thousand tons MDI has been built and will be put into production according to the demand. At the same time, the company will continue to expand MDI production capacity in Fujian and Ningbo base, and further enhance the market share of MDI products. In addition, the company will continue to seek opportunities in the future to build MDI production base in the United States, try to reduce the trade risk of product export, and grasp the opportunity of the MDI demand brought by the American construction field to further expand the market in the United States.


Southwest Securities researcher Yang Lin admitted that in the long run, Wanhua chemical acquired 100% stake in Swedish International Chemical Industry and completed the 51% change of Cornell market in Fujian, further consolidating the core moat in the domestic MDI technology, maintaining the market order on the global scale, and controlling Fujian Cornell polyurethane company, further monopolizing the new capacity of the domestic MDI industry. With the gradual increase of 800 thousand tons of technological transformation capacity in Yantai and Ningbo in 2020, the share of the global MDI industry will increase to more than 30% in the next three years, and the status of the industry will be further consolidated.