Yantai, China -- Isocyanate producer Wanhua Chemical Group has reported a 35% rise in revenue to RMB 15.4bn ($2.5bn) in the nine months ended 30 September 2013, with a 42% increase of net profit to RMB 2.3bn.
Despite the drop in MDI (methylene diphenyl diisocyanate) price, the company’s third-quarter revenue was up by 27%.
In October, Wanhua released three investment announcements. It plans to pump RMB 1.6 bn into building a 220,000 m2 global R&D centre and HQ in Yantai in the next two years. The ;company said it will attempt to develop competitive technology for C3 and C4 streams to further diversify.
The company is also setting up a subsidiary, Wanhua Chemical (Chengdu) Co in Chengdu, Sichuan for waterborne resins, modified MDI and TPU (thermoplastic polyurethane), as the first phase of its RMB 1bn southwest project to expand. The construction is planned to be completed within two years with RMB 250m invested.
Separately, Wanhua is putting in RMB 160bn to start a 30 kT/year superabsorbent (SAP) polymers plant. This first phase is expected to be finished in 2014. The overall project is expected to have a capacity of 120 kT/year.
According to the company’s announcement, the global consumption of SAP in 2012 reached 1.7m tonnes, of which personal hygiene products accounted for more than 90%. The compound annual growth rate for diaper consumption volume in the next five years is pegged at 20%.