On March 13, 2022, the groundbreaking ceremony of the BDO integration project (Phase I) of Inner Mongolia Sunway New Materials Co., Ltd., a subsidiary of Sunway Co., Ltd., was held in the Low-Carbon Industrial Park of Wuhai Economic and Technological Development Zone, Inner Mongolia Autonomous Region. This is also the first BDO project to start construction since 2022.

It is reported that Wuhai City, where the BDO integration project is located, is located in the western part of the Inner Mongolia Autonomous Region. It is a city growing between the Yellow River and the desert. It has rich coal resources. 60% of the reserves. In recent years, Wuhai has accelerated the cultivation and development of strategic emerging industries while accelerating the transformation and upgrading of traditional industries. A number of new energy, new equipment and new material projects have settled in Wuhai, injecting strong momentum into Wuhai's construction of a new energy and new material industrial base.

According to the announcement, Sunway Co., Ltd. plans to build a 900,000-ton/year BDO and degradable plastic integration project in Wuhai, with an estimated total investment of 13 billion yuan. The company's BDO integration project produces BDO through the coal-calcium carbide-acetylene-1,4-butanediol industrial chain, and further develops downstream to produce degradable plastic PBAT and high-end polyether material PTMEG.

This start-up project is the first phase. It is planned to combine 300,000 tons/year BDO, 100,000 tons/year PBAT, 60,000 tons/year PTMEG, 600,000 tons/year formaldehyde plant, and supporting 360,000 tons/year acetylene raw material (calcium carbide). The device is planned to be ready for production by June 2023.

It is understood that the current production method of BDO is mainly based on the acetylene aldehyde method of calcium carbide to acetylene, but only a small number of enterprises have their own calcium carbide. The calcium carbide industry is currently eliminating outdated production capacity, and the effective production capacity is further compressed. This BDO integration project will enable the company to provide its own calcium carbide production capacity, which will give play to its advantages in raw material guarantee and cost control for the production of BDO and PBAT.

Deng Huichang, Deputy Secretary-General of the New Chemical Materials Professional Committee of China Petroleum and Chemical Industry Federation and Director of the Office of the National BDO and Derivatives Work Department, said that according to the 14th Five-Year Plan and the 2035 Vision Outline, the two major downstream areas of BDO are biodegradable materials. BDO and new energy vehicles are listed as national strategic emerging industries. Under the support of downstream demand, the tight balance of BDO will continue, and BDO prices are expected to remain high in 2022.

Some industry analysts believe that the downstream of BDO are three high-prosperity emerging tracks of degradable plastics, spandex and lithium battery materials, and the upstream calcium carbide is a traditional industry with high energy consumption that continues to strictly control the increment and eliminate the stock, and the upstream and downstream industries are growing. The curve is badly misaligned. Therefore, the upward trend of the calcium carbide-BDO industry chain is supported by high demand growth and strong supply constraints. The sharp rise of the calcium carbide-BDO industry chain in 2022 is the prelude to the five-year long-term boom, and the industry boom in the next five years will be far Exceed current market expectations. Hyosung Group, the world's leading spandex enterprise, has built a new 360,000-ton spandex production base in Ningxia and the first phase has been put into operation. During this event, it signed a framework strategic cooperation agreement with Inner Mongolia Sunway, agreeing to give priority to purchasing Sunway BDO under the same conditions. Products, although the agreement is not binding, it also shows the desire of downstream companies for upstream capacity.

The relevant person in charge of Sunway Co., Ltd. said that the construction of the company's BDO integration project is in line with the country's industrial development policy of vigorously developing new technologies, new materials, structural adjustment, and growth. The project has high technical content and high product added value. It seizes market opportunities. The company vigorously develops and constructs projects such as BDO, PBAT, PTMEG, GBL and NMP, which can not only provide the market with products in demand, but also develop product structure for 3D Co., Ltd. A good foundation has been laid for the adjustment and development of value-added high-fine chemical products.

Sunway shares said that the company adheres to the strategic orientation of diversified layout, industrial coordination and green development, and has formed a group development pattern. In the future, Sunway shares, aiming to build a century-old group aircraft carrier enterprise, will better take responsibility for the society and create value for shareholders. Editor/He Yuting