Recently, Hubei Jingzhou Ecology and Environment Bureau accepted the environmental impact assessment (EIA) report for Hualu Hengsheng (Jingzhou) Co., Ltd.'s 300,000-ton/year TDI project, signaling significant progress in the company's expansion plans. This milestone highlights Hualu Hengsheng Group's ambition to strengthen its position in the global TDI market.
Hualu Hengsheng (Jingzhou) plans to invest approximately 46 billion yuan to build a modern chemical production base in Jiangling Chemical Park, Jingzhou. The project will be implemented in multiple phases, initially producing 300,000 tons of TDI per year, with a long-term plan for a second identical production line. Using proprietary TDI production technology, the company aims to diversify its product portfolio, enhance high-end chemical capabilities, and improve competitiveness in the polyurethane sector.
On December 8, Hualu Hengsheng announced a capital increase of 2 billion yuan to its Jingzhou subsidiary, in cooperation with related parties Hualu Group and Hualu Investment Development. Prior to this injection, the subsidiary's registered capital was 5 billion yuan, with Hualu Hengsheng holding 70%, Hong Kong Hualu 20%, and Hualu Investment 10%. The capital infusion will support ongoing project construction, extend the industrial chain, optimize capital structure, and improve profitability without creating intra-industry competition.
Founded in 2000 and headquartered in Dezhou, Shandong, Hualu Hengsheng is a major domestic producer of chemical raw materials. Its two main production bases in Dezhou and Jingzhou cover fertilizers, basic chemicals, new chemical materials, and renewable energy materials. Key products such as DMF, methylamine, dicarboxylic acids, and carbonates rank first nationwide in market share.
The global TDI industry is dominated by a few leading players, including BASF, Covestro, Wanhua Chemical, and Yantai Jule. Current global TDI production capacity stands at approximately 3.5–3.55 million tons per year. Wanhua Chemical's total TDI capacity is expected to reach 1.44 million tons/year by the end of 2024, making it the world's largest supplier. Other major producers like BASF and Covestro maintain capacities around 900,000 tons/year each, with production in China, Europe, Korea, and the United States.
Meanwhile, overseas TDI capacity is shrinking due to high energy costs and stricter environmental regulations. BASF closed its Ludwigshafen plant in Germany in 2023, Tosoh exited its Nanyo facility in Japan, and Petroquímica Río Tercero in Argentina shut down Latin America's only TDI plant in 2024. As a result, new TDI projects are increasingly concentrated in China, which is projected to account for nearly 60% of global TDI capacity by 2028.
Hualu Hengsheng's strategic expansion, capital reinforcement, and long-term planning position the company to potentially rival Yantai Wanhua in the TDI market. With China's TDI capacity rapidly growing and overseas production retreating, Hualu Hengsheng is set to become a key player in the global polyurethane supply chain.