Shanghai, China — Wanhua is building a flexible polyol plant, "which gives us a leading position as a producer in China," said Peter Huo, vice president in an exclusive interview with UTECH-polyurethane.com.
UTECH Asia 2016: Wanhua moves into polyols
“We intend to leverage our position in propylene oxide (PO) and LPG. The polyol business in China is fragmented but we are not a little guy buying PO we are actually producing it. We are integrated into LPG and from there into PO/MTBE this gives an advantage and stability in terms of the market.”
The company is planning a 200 kT/year flexible polyols plant and a 200 kT/year rigid polyol plant which can be blended and sold as systems Huo said. He added: "People tend to think of Wanhua as just a producer in commodity MDI and neglect the fact that we have a much bigger system house than any competitors in China."
Huo said the expansion “would make us a close second to Hongbaoli in regards of blended polyols.”
“It enables us to diversify into polyols and systems and provide solutions. This is part of the coordinated strategy in China. But in other regions, they have to have the full package,” he said.