Urethane Blog

Wanhua 2022 Results

March 21, 2023

Wanhua Chemical posts 34% profits drop in 2022

Wanhua Chemical posts 34% profits drop in 2022

MOSCOW (MRC) — China’s Wanhua Chemical reported a 34.1% decrease in net profits in 2022, as steep increases in raw materials and energy prices significantly squeezed its margin, the company said.

The company has become the world’s biggest methylene diphenyl diisocyanate (MDI) supplier, with a combined capacity of 3.05m tonne/year as of late 2022.

It is also the world’s third largest toluene diisocyanate (TDI) supplier, with a total compacity of 650,000 tonne/year.

Cost for key raw materials rose heavily. For example, prices of benzene, coal and liquified petroleum gas surged by 14%-21% in 2022.

Its 1m tonne/year ethylene project in Yantai operated at 91% in 2022. Its polyurethane plants’ overall utilisation rate stood at 92% in 2022.

Outlooks: Progress on constructions of its Penglai complex, consisting of a 900,000 tonne/year propane dehydrogenation unit and downstream units. 2023 will be its “project year”. All project investments should follow three rules: in line with the company’s strategy and resources access capacity, having comparatively competitive advantages even in the most extreme competition scenario, with comprehensive considerations of global operating environment.

Wanhua Chemical also plans to increase the capacity of its polycarbonate (PC) plant in Yantai in Shandong province by 140,000 tons per year to 340,000 tons per year. The expansion will be carried out by reengineering the existing 200 ktpa PC production project at the site. The company is currently seeking environmental approval for the plan. The timing of the project is not disclosed.

Wanhua Chemical was founded on December 20, 1998, and is the first listed joint-stock enterprise after reorganization in Shandong Province, China. The company mainly produces diphenylmethane diisocyanate (MDI), including pure MDI and polymerized MDI used in the production of polyurethane (PU).


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