Yanchang Chemical Construction announced on the evening of December 11 that Shaanxi Chemical Construction Engineering Construction Co., Ltd., a wholly-owned subsidiary of the company, intends to sign a 400,000-ton/year MDI project with Fujian Cornell Polyurethane Co., Ltd. For the general contracting contract for construction and installation projects, the total contract amount is tentatively set at 1.35 billion yuan.
The announcement shows that the project construction includes two parts: building construction and device installation, and the construction content includes: anilineDevice, nitrobenzene device, nitric acid device, formaldehyde device, ODC hydrochloric acid cracking device, tank area, central control room, external pipe of the whole plant, torch, incineration device, sewage treatment device, spare parts warehouse, chemical warehouse, factory front District offices, etc. The project is scheduled to start on June 1, 2019, with a construction period of 2 years, and will be completed and delivered on June 1, 2021.
It is understood that MDI is mainly used for TPU, synthetic leather slurry, refrigerators, building insulation materials and other fields. Industry insiders pointed out that MDI application fields are mostly concentrated in construction, furniture, automobile and other industries, and its demand growth rate is highly related to GDP growth rate. In the future, with the growth of the global economy, the consumption of MDI will continue to grow steadily. It is estimated that the growth rate of global MDI demand will remain at about 6% from 2018 to 2020.
The phosgene method, the mainstream production process of MDI, has high technical barriers and capital barriers, and will present an oligopoly pattern in the future. The domestic MDI industry will usher in a new round of expansion peak within three years. As of 2020, domestic MDI production capacity is expected to rapidly expand to 4.22 million tons per year.
Yanchang Chemical Construction stated that the signing and performance of the contract will have a positive impact on the company’s operating performance.
