Guangxi chlor-alkali hydrogen peroxide propylene oxide (HPPO) and polyether polyol integration project has now completed the construction of the pre-stage pile foundation project, three-way and one-leveling, spare parts warehouse and other projects, and delivered to each EPC unit to start construction, project enters full construction phase. The project is located in the Qinzhou Petrochemical Industrial Park, and is one of the core projects of the third phase of Huayi Qinzhou Chemical New Material Integration Base.
Hydrogen peroxide propylene oxide (HPPO) and polyether polyol integration project with a total investment of 5.5 billion yuan, the main production 250000 tons/year hydrogen peroxide plant, 300000 tons/year propylene oxide200000 tons/year polyether polyol, 50000 tons/year polymer polyol plant and supporting facilities. The project started construction in November 2023, and the pile foundation project, primary ground management and main road construction started in May this year. Commissioning is expected in 2026. On November 25, 2023, the Guangxi Zhuang Autonomous Region's major project promotion meeting and the groundbreaking ceremony of the third phase of the Huayi Qinzhou Chemical New Material Integration Base were held in Qinzhou.
Project Name huayi Qinzhou Chemical New Materials Integration Base Phase III Hydrogen Peroxide Propylene Oxide (HPPO) and Polyether Polyol Integration Project construction Unit: Guangxi Huayi Chlor-Alkali Chemical Co., Ltd. Project construction site: The petrochemical industrial park in Guangxi Qinzhou Port Economic and Technological Development Zone, specifically the south side of Jinguo Street and the east side of Nangang Avenue, namely the north side of the existing phase I project of Guangxi Huayi Chlor-Alkali Chemical Co., Ltd. Floor Area: The newly added land covers an area of 41.55 hectares. Nature of Project: Newly built, the project will be built on the basis of the completion of the "Three Connections and One Leveling" total Project Investment: The preliminary estimate is 5498.93 million yuan; Environmental protection investment is about 158.31 million yuan labor quota: Proposed to add 320 persons production system: Unit operation time 8000h scale of production: Project includes HPPO unit and polyether polyol unit 2 sets of integral unit proposed construction of the project 300000 tons/year HPPO plant (including 250000 tons/year hydrogen peroxide (100%) plant and 300000 tons/year propylene oxide plant), 200000 tons/year polyether polyol plant and 50000 tons/year polymer polyol plant at the same time, supporting the construction of tank farm and loading and unloading area, warehouse, circulating water yard, air compressor station, refrigeration station, control room/cabinet room, power transformation and distribution station, oxygen-containing waste gas treatment facilities of HP unit oxidation reactor, bag dust removal facilities, incinerator, overhead torch, fire water station, desalted water station, analysis and testing, maintenance room, initial rainwater pool, accident pool and other facilities. The Huayi Qinzhou Chemical New Materials Integration Base project was invested and constructed by Shanghai Huayi Holding Group Co., Ltd., which is the largest industrial project undertaken by Guangxi in the eastern industrial transfer in recent years, and an important landmark achievement of deepening the cooperation between the east and the west between Guangxi and Shanghai. It is also the largest industrial project in Guangxi at present, with a total investment of nearly 100 billion yuan. The first phase of the project will be put into operation in 2021, the second phase of the project will be put into operation in 2022, and the third phase of the project will start construction from 2023, initially reaching the goal of effective convergence of the first, second and third phases of the construction, which can drive a number of downstream and related industrial projects to settle down, and promote the formation of a regional industrial development pattern of "capital and technology output of the Yangtze River Economic Belt-Qinzhou-high-high-high-high-products-products facing ASEAN market. Propylene Oxide Market Analysis
1. market demand continues to grow propylene oxide (PO) is an important chemical raw material, and its market demand has continued to increase due to the continuous expansion of downstream applications such as polyurethane foams, coatings, and adhesives. In 2023, global PO capacity continued to climb, increasing by 19.4 percent year-on-year, a growth trend that reflects the importance of PO in multiple industries and growing market demand. High concentration of 2. production capacity, leading enterprises in a significant position
about 61.3 per cent of global PO capacity is concentrated in the top 10 producers. As the world's largest producer of propylene oxide, Dow Chemical has a significant market share and influence. Leander Basel Industrie and Shell followed in second and third place respectively. This high degree of capacity concentration indicates that the leaders of the PO industry dominate the market and have an important influence on market dynamics and price trends.
3. rapid growth of China's PO capacity
it is estimated that by 2025, China's new propylene oxide production capacity will reach 4.09 million tons/year, and the total production capacity will exceed the 10 million tons/year mark. In 2023, China's PO production capacity will continue to grow, with new production capacity reaching 1.218 million tons/year and total production capacity reaching 6.12 million tons/year, up 24.85 year-on-year. This rapid growth reflects that China's PO industry is in a period of concentrated expansion, which has a profound impact on the global PO market structure.
4. new process dominates new capacity
judging from the new installations during the year, the HPPO process became the mainstream, with a production capacity of 700000 tons/year, accounting for 57.47 per cent. Compared with the traditional chlorohydrin method, the new process PO unit has larger capacity and higher efficiency. In the new production capacity, Tianjin Petrochemical, Shandong Sanyue and Zhejiang Petrochemical and other three enterprises have supporting downstream equipment, in addition to their own use, there is still a large sales volume, further promoting the increase in the volume of goods in the market.
5. chlorohydrin method faces phase-out challenge
with the implementation of the latest "Industrial Structure Adjustment Catalogue" issued by the state in 2024, the chlorohydrin method has been listed as a process technology for elimination. This means that there will be no new devices for the chlorohydrin process in the future, further accelerating the promotion and application of the new process. This policy orientation will have a profound impact on the capacity structure and market structure of the PO industry.
6. capacity continues to expand in the future, the market faces challenges
in 2024, the overall trend of concentrated capacity expansion of domestic PO will continue, capacity utilization may continue to decline, and the market will face greater challenges. According to statistics, in the second half of 2024, it is estimated that there will still be 840000 tons/year of new PO production capacity, mainly concentrated in Shandong and East China. By then, the total domestic PO capacity will be expanded to 8.06 million tons/year. Although the new capacity continues to increase, but more supporting mainly, coupled with the simultaneous construction of downstream capacity, market supply and demand or maintain a relative balance.
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