Recently, Wanhua Chemical announced the public consultation draft of the environmental impact report for its project to expand PDMS production capacity by 20,000 tons per year.
This project plans to add two new production lines on the basis of the existing PDMS facility in Yantai Chemical Industrial Park, Yantai City, Shandong Province, while simultaneously adjusting the capacity of the existing lines. The final goal is to increase the PDMS plant capacity from 9,000 tons per year to 29,000 tons per year.
Polydimethylsiloxane, also known as dimethyl silicone oil, abbreviated as PDMS, is a high molecular polymer. Depending on the molecular weight, PDMS appears as a colorless transparent volatile liquid to a highly viscous liquid or silicone gel. PDMS is odorless, highly transparent, and has excellent heat resistance, cold resistance, weather resistance, chemical resistance, water repellency, thermal conductivity, and electrical insulation. It is widely used as an insulating lubricant, shock absorber, oil and dust repellent, dielectric material, and heat transfer medium. It can also be used as a defoaming agent, release agent, additive for paints and daily chemical products.
In the synthesis process of PC resin, copolymerization with PDMS monomers produces PC-siloxane copolymer (silicone copolymer PC). The silicone copolymer PC product has not only good flame retardancy but also excellent fluidity and low-temperature toughness. Major foreign producers of silicone copolymer PC include Idemitsu Kosan and Teijin from Japan, Samyang and LG Chem from South Korea, SABIC, and others. The industrialization of silicone copolymer PC in China started relatively late. In 2017, Gansu Yinguang Chemical Industrial Group built and stabilized the country’s first silicone copolymer PC production unit. In April 2022, Wanhua Chemical announced the start-up of its specialty copolymer PC project, officially launching the first high-silicone content (20%) silicone PC product. In November 2024, Cangzhou Dahua successfully conducted the first feed trial for 20% silicone content copolymer PC. Technologically, domestic production of silicone copolymer PC no longer faces barriers. However, there is still a gap between domestic and imported products, and China remains heavily dependent on imports.
From the application perspective, copolymer silicone PC is a specialty product widely used in 5G communications, virtual reality devices, medical instruments, new energy industries, electronics and electrical appliances, the Internet of Things, and military materials. In the future, with the improvement of domestic technology and rapid development of emerging industries, silicone copolymer PC, as a high-performance material, will see continuously increasing demand.
According to Wanhua Chemical’s 2024 annual report, after the PC overhaul in September 2024, Wanhua Chemical's annual PC capacity reached 600,000 tons, ranking first domestically. In 2024, Wanhua Chemical’s high-performance polymer division ranked first in the domestic mid-to-high-end market share for polycarbonate (PC) products, with the highest PC export volume in China and a PC capacity utilization rate of 78%.
In April this year, Wanhua Chemical (Fujian) Co., Ltd. planned to build a new polycarbonate project with an annual capacity of 600,000 tons. After the project’s commissioning, Wanhua Chemical’s capacity will reach 1.2 million tons per year, setting a new record. Surpassing the one million ton capacity mark, Wanhua Chemical will become the third global company to do so. Currently, Wanhua Chemical is increasing investment in specialty monomer raw materials, indicating that while expanding its PC fundamentals, it is also continuously moving toward higher-end development.
Although the global market faces risks of polycarbonate overcapacity, with some leading global chemical companies choosing to reduce production or exit the polycarbonate business, companies like Covestro and Wanhua Chemical remain committed to expansion. Domestically, polycarbonate still has room for process upgrades and product structure optimization. The domestic production rate of high-end polycarbonate products is less than 30%, and there is still a gap to fill. There are great opportunities in specialized fields such as automotive, optics, and medical applications. At the same time, environmentally friendly processes, recyclable workflows, and bio-based raw materials are challenges for long-term development, especially for companies aiming for global growth.
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3YRS
