Cangzhou, Hebei — Cangzhou Dahua more than doubled the gross margin for its TDI production to 61% in 2017. The business generated CNY 3.9bn ($620m) sales last year.
Also a caustic soda maker, Dahua recorded CNY 4.4bn overall revenue in 2017, up by 50% from 2016. Net profit jumped 246% to CNY 1.3bn, similar to the company’s earlier estimate as UTECH-polyurethane.com reported in February.
The company’s TDI sales volume went down by 9% to 154 kT due to reduced production. Production fell because of facility maintenance and more stringent environmental regulations, said its annual report.
Dahua's annual report said that during 2017, China’s TDI price rose from a low point at CNY 22,500/tonne in June to a peak at CNY 40,000/ tonne in the third quarter. China’s average TDI price in 2017 was 74% higher than that in 2016.
With a bullish domestic market taking more product, Dahua’s export sales in 2017 declined by 41% to CNY 114 million.
The company expects flat overall revenue at CNY 4.4bn in 2018. This is because a number of new TDI facilities are due to come on stream globally.
A joint venture between Dao and Saudi Aramco with 200kT/year capacity and Wanhua’s additional 300kT/year capacity in Yantai are slated to start operation this year, the firm said.
Currency Conversion: Xe.com
