Lanxess and Wacker Announce Price Hikes; BASF Guangdong Site Fully Operational! Inner Mongolia Breaks Ground on RMB 10-Billion PBAT Project

This week's major company news: After the upgrade, Gaoqiao Petrochemical's ABS plant capacity has expanded to 300,000 tons; a 10.7 billion yuan, 1.2 million-ton PBAT full industry chain project in Inner Mongolia has started; Wansheng Co., Ltd. is expected to incur a huge loss of over 960 million yuan by 2025, Evonik reorganizes its R&D department into an innovation hub; Sinopec is laying out high-end energy storage material projects, Formosa Chemicals & Fibre Corp. stops taking orders from April 1st due to raw material shortages; Lanxess polymer additives increase by up to 50%, Wacker North America products will rise by up to 10% starting from April.

This week’s production capacity updates: BASF’s Guangdong integrated base has commenced full-scale operations; Shenma Co., Ltd.’s Thailand-based nylon 66 project has entered trial production; Deguan New Materials has invested RMB 420 million to construct a high-end film project; LG Chem has shut down its 800,000-ton-per-year NCC unit in Yeosu; Changhua Chemical’s world’s first 80,000-ton-per-year CO₂-based polyether plant has commenced operations.

This week's material innovation: Formacoat launches hydrophilic coating to break industry monopoly, Lanzhou Petrochemical produces medical-grade low-density polyethylene for the first time; Shanghai Petrochemical releases new ultra-clean high-voltage cable material, Sumitomo introduces 30% glass fiber reinforced polypropylene, Guangzhou Petrochemical trials high-end metallocene polypropylene new product.

This week's material applications: ALPLA establishes a factory in the Philippines to expand its packaging business; AIMPLAS produces bioplastics from brewery waste; Tide launches packaging with 50% recycled HDPE; L'Oréal partners with companies to create "carbon-eating" packaging materials. More industry news, please read this week's [Weekly New Materials Update].

Big Company Updates

Gaogiao Petrochemical ABSSuccessful commissioning of the plant upgrade and retrofit project

On March 22, the upgraded ABS (acrylonitrile-butadiene-styrene copolymer) plant at Gaoqiao Petrochemical successfully commenced production, marking a steady expansion of the company's ABS capacity and providing favorable conditions for improving product quality and market share. Previously, Gaoqiao Petrochemical's ABS plant had an annual capacity of 200,000 tons; with the commissioning of the new production line, the company's total ABS capacity has increased to 300,000 tons per year.

Inner Mongolia’s 10-billion-yuan project, 120Ten thousand tons of PBATThe project has started, truly realizing ""Affordable Plastic Ban"！

March 26, Dongjing Zhongke in Inner MongoliaNew MaterialsThe groundbreaking ceremony for the PBAT full industrial chain project of a technology company was held. The total investment of the project is about 10.7 billion yuan, providing important support for Wuhai City, Inner Mongolia, to accelerate the construction of a "full industrial chain + leading enterprise" characteristic industrial cluster, and to fully build a new highland for degradable new materials industry.

This newly launched PBAT integrated industrial chain project leverages Wuhai City's BDO industrial base to secure local supply of core raw materials, fully establishing a complete closed-loop industrial chain from "coal → BDO → PBAT → modified materials → end products," thereby driving deep collaboration and efficient integration across the upstream and downstream sectors.

Flame Retardant Industry Leader Reports Nearly $1 Billion Loss

On the afternoon of March 23, Wansheng Co., Ltd., a leading enterprise in the phosphorus-based flame retardants industry, released its 2025 annual financial report.

During the reporting period, the company’s revenue reached RMB 3.378 billion, representing a year-on-year increase of 13.98%, the highest level in the past three years; however, the net profit attributable to shareholders of the listed company amounted to a loss of over RMB 960 million, plunging 1,028.55% year-on-year, marking an exceptionally rare, massive loss since the company’s listing.

Wan Sheng Pharmaceutical attributed its huge losses to: first, changes in the supply and demand of flame retardants led to a decline in per-ton gross profit; second, it proactively adjusted its production capacity layout, moving from Weifang, Shandong to Thailand, resulting in a large amount of asset impairment provision for the Weifang base, with a long-term asset impairment provision of 964 million yuan in 2025, almost eroding the annual profit.

Evonik restructures R&D department into innovation centers, focusing on efficient implementation and market orientation

German chemical company Evonik is restructuring its strategic R&D division into Evonik Innovation Hub. This new unit operates as a venture development department, accelerating the translation of technological breakthroughs into industrial applications. The company has defined its core mission as conducting innovation more rapidly, with stronger market orientation, and closer alignment with application requirements.

Sinopec is advancing into high-end energy storage materials projects!

In March, Sinopec Jinling Branch Company released the first public notice for the environmental impact assessment of its high-end energy storage materials project.

Formosa Petrochemical was forced to stop taking orders, 4 No longer fulfill the obligation as of the date.

Formosa Chemicals & Fibre Corporation (FCFC) officially announced on March 24 that due to supply disruptions of petrochemical feedstocks caused by Middle East conflicts, it has declared force majeure on aromatics and their derivatives. Its upstream supplier, Formosa Petrochemical Corporation (FPCC), has reduced supplies of pyrolysis gasoline and naphtha due to geopolitical tensions, resulting in severe feedstock shortages at FCFC's Mailiao, Yunlin plant, with over 50% of its capacity expected to be affected.

Starting from April 1st, the company will be unable to fully fulfill its original supply contract obligations, involving products including benzene, toluene, xylene, styrene monomer (SM), phenol, acetone, and PTA. This statement marks the shift of Middle East geopolitical risks impacting the Asian aromatics and plastic raw material supply chain from expectation to reality, with Asian spot supply expected to remain tight.

LANXESS announces price increases across its entire portfolio of polymer additives, with hikes of up to 50%.

Lanxess has raised prices effective immediately for its polymer additives product line. The price increase covers flame retardants and specialty additives, with hikes of up to 35%; plasticizers will see increases of up to 50%.

Wacker Increases Prices for Polymers and Silicones

Wacker Chemie AG, Munich, Germany, announced that it will raise prices for polymer dispersions, redispersible polymer powders, and silicone products in North America effective April 1, 2026.

The maximum price increase is 10%, aimed at addressing what the company calls "severe disruptions in the global supply chain and continuously rising raw material and logistics costs."

Capacity Dynamics

BASF, fully operational!

This base is China’s first large-scale, wholly foreign-owned petrochemical integrated project, located in the Donghai Island Petrochemical Industry Park in Zhanjiang City, Guangdong Province. It is independently constructed and operated by BASF, with a total investment of approximately €8.7 billion (significantly lower than the initial budget of €10 billion). It represents BASF’s largest single investment to date and is BASF’s third-largest integrated production site globally. As of the end of February this year, cumulative investment has exceeded RMB 60 billion.

Shenma Co., Ltd.: Thai Nylon 66The project enters the trial production phase.

It was learned from Shenma Co., that the company's 20,000 tons/year nylon 66 differentiated fiber project in Thailand has started trial production in mid-February. The product quality has reached the standard of premium grade, and samples have been sent to customers in Japan, Thailand, and other countries for testing.

Thailand's 20,000 tons per year of differentiated nylon 66 fiber project is the first overseas production base project of China Pingmei Shenma Group. The project is planned to be built in two phases. Wang Bing, general manager of Shenma Co., introduced that the first phase was completed in the end of last year and has passed the acceptance by the Thai authorities, and is expected to have an annual production capacity of 10,000 tons of nylon 66 industrial filament, using the four-head high-speed spinning technology independently developed by China Pingmei Shenma Group, which has complete intellectual property rights.

4.2Yi Zha Xiang Gao Duan Membra! Deguan Xincai Expand Production Capacity by 2.64

On March 23, DeGuan New Materials issued two new announcements. The company held the 13th meeting of the 5th Board of Directors on that day, and approved the related investment proposal, agreeing to lead the construction of an electronic and new energy film material upgrade and expansion project in Zhongxing Science and Technology Park by its wholly-owned subsidiary, Guangdong DeGuan Packaging Materials Co., Ltd. The total investment of the project is estimated to be about 420 million yuan, and the relevant matters still need to go through the government's approval and filing procedures.

The project's construction period is expected to last 27 months, and after completion, the annual production capacity will reach 26,400 tons.

LGChemical Shutdown Lishui 2No. X Plant; South Korea’s petrochemical industry faces cascading shutdowns!

South Korea's largest petrochemical company, LG Chem, has decided to shut down part of its key Yeosu plant due to a prolonged disruption in naphtha supply caused by the blockade of the Strait of Hormuz.

LG Chemical NCC (Naphtha Cracking Plant) factory in Yeosu, South Korea

Changhua Chemistry 810,000 tons of CO₂Polyether production launch

On March 22, 2026, the carbon dioxide polyether industrial plant of Changhua Chemical in the petrochemical industrial base of Xuyi New District, Lianyungang City, Jiangsu Province, was officially put into operation. This plant, with an annual capacity of 80,000 tons, is called the world's first low-temperature and low-pressure carbon dioxide polyether industrial plant by Changhua Chemical.

This facility belongs to Changhua Chemical’s carbon dioxide (CO₂)-based polyether and high-performance polyol project, with a total investment of RMB 5.86 billion. The project covers approximately 659 mu (about 109.8 acres) and has a long-term planned total CO₂-based polyether capacity of 1.06 million tons per year. Upon full commissioning, the project will enable the resourceful utilization of 320,000 tons of CO₂ annually. Phase I of the project is implemented in two stages: Stage 1—which has already been completed—includes an 80,000-ton-per-year CO₂-based polyether plant and a 300,000-ton-per-year polyether polyol plant, among other supporting facilities; the core 80,000-ton-per-year CO₂-based polyether facility is now commencing operations. Stage 2 involves the construction of a 980,000-ton-per-year CO₂-based polyether plant and associated supporting facilities, which—once completed—will achieve the project’s overall capacity target.

Innovative materials

Medical Device Coating Revolution! FormacoatLaunch HydroMarkBreak the industry monopoly structure

Formacoat has recently completed a phased transformation and officially entered the coating R&D field. Its first milestone achievement is the launch of its self-developed hydrophilic coating, HydroMark.

Formacoat stated that the company has heavily invested in coating R&D infrastructure, manufacturing capabilities, and scientific talent to drive the commercialization of its coating technologies.

Lanzhou Petrochemical Produces Medical-Grade Low-Density Polyethylene for the First Time

This new product is a low-density polyethylene positioned between medical-grade and general-purpose grades.New Materials, mainly used for blow molding products, serving as the base material for soft tube packaging of liquid and cream cosmetics such as facial creams, lotions, essences, and facial cleansers, as well as for sample bottles and travel-sized bottles. It can come into direct contact with the contents, and compared to traditional medical-grade polyethylene specialty resins, it features lower usage costs, better sealing properties, and stronger resistance to permeation, indicating a broad market prospect.

Shanghai Petrochemical Launches New Ultra-Clean High-Voltage Cable Compound to Support Domestic Self-Reliance in Critical Power Materials

Sinopec Shanghai Petrochemical, in collaboration with Sinopec Chemical Sales East China Branch and Zhejiang Wanma Co., Ltd., recently jointly released J182C, a specialized base material for 110kV and above ultra-high voltage cable insulation. The product has achieved a technological breakthrough and completed industrial verification, with key performance indicators reaching international advanced levels. The first batch of products, fully loaded in special tank trucks, departed from the Shanghai Petrochemical production base and was delivered to the industry leader Zhejiang Wanma, marking the establishment of a full "research-production-learning-application" chain for high-end cable insulation base materials by the company. This adds new momentum to the self-reliance and control of key materials in the energy and power sectors.

Sumitomo Polymer Composites Co., Ltd. launches glass fiber-reinforced polypropylene.

Sumitomo Polymer Composites launches THERMOFILXP—a 30% glass-fiber-reinforced polypropylene, setting a new benchmark for high efficiency and high performance.

Sumitomo Polymer Composite Materials Co., Ltd. launchesTHERMOFILXPThis is a 30% glass-fiber-reinforced polypropylene (PP) material that delivers outstanding performance while significantly reducing cycle times. This material not only optimizes component manufacturing but also enhances the entire value chain—from European original equipment manufacturers (OEMs) to end consumers.

Guangzhou Petrochemical successfully trial-produced new metallocene polypropylene products!

Recently, the Beijing Research Institute of Chemical Industry independently developed a new type of metallocene polypropylene catalyst, SMC-PL02, which has successfully completed industrial application at the No. 2 polypropylene unit of Guangzhou Petrochemical, smoothly producing two new high-end metallocene polypropylene products, MC1005 and MC1009.

These products boast core advantages such as low extractables, high purity, and high transparency, and can be widely applied in various high-end fields, including premium packaging, functional films, and synthetic fibers, filling the gap in the production and application of high-performance materials. With its independently controlled core catalytic technology, Beihua Institute actively helps production enterprises overcome the bottlenecks in the production of high-performance polyolefin materials, promoting the domestic polyolefin industry to transform and upgrade towards high performance and specialization.

Successful application! Two new high-end metallocene polypropylene products

Recently, a new metallocene polypropylene catalyst SMC-PL02, independently developed by Beijing Research Institute of Chemical Industry, has successfully completed its industrial application in the No. 2 polypropylene unit of Guangzhou Petrochemical, smoothly producing two new high-end metallocene polypropylene products, MC1005 and MC1009. These products, characterized by low exudation, high cleanliness, and high transparency, can be widely applied in high-end packaging, functional films, synthetic fibers, and other high-end fields, filling the production and application gap for related high-performance materials. With its independently controlled core catalytic technology, the Beijing Research Institute of Chemical Industry is actively helping production enterprises to break through the bottlenecks in the production of high-performance polyolefin materials, contributing to the transformation and upgrading of the domestic polyolefin industry towards high performance and specialization.

Innovation application

ALPLAEstablish a factory in Calamba City, Philippines, to expand packaging solutions.

In March 2026, ALPLA established its first production site in the Philippines, further expanding its business presence in the Asia-Pacific growth region. This leading global packaging company has been producing high-quality plastic bottles and bottle caps in Calamba City since the summer of 2025. On March 19, 2026, ALPLA celebrated the official opening of the factory with 80 guests.

AIMPLASProject to Convert Brewery Waste into High-Performance Bioplastics

AIMPLAS is collaborating with Covinil and Eroski to develop 100% recyclable flexible skin packaging made from recycled PET. Skin packaging forms an invisible "second layer of skin" around the product, allowing consumers to preserve the product while still checking its quality. However, despite its high-end appearance and relatively low cost, skin packaging faces recycling challenges due to its multi-layered/material composition. The BOTTLE4FLEX project will focus on advancing the solvent decomposition process, partially depolymerizing PET to recover and modify its properties.

Tide detergent introduces 50%Recycled HDPE

According to Erema's announcement, Tide, one of North America's leading laundry detergent brands, is launching a (37-ounce, 1.09-liter) package containing 50% recycled content. This latest development builds on Procter & Gamble's years of using post-consumer recycled materials in HDPE packaging; the company has also collaborated with industry partners to help establish a recycled HDPE supply chain in the U.S. early on.

L’Oréal partners with Dioxycle: Create a system that can “"eat carbon"Packaging materials

In early March 2026, L’Oréal and startup Dioxycle announced the signing of a multi-year off-take agreement aimed at converting captured industrial carbon emissions into high-performance, sustainable packaging materials. This marks a pivotal move under L’Oréal’s “L’Oréal for the Future” sustainability program and could potentially spark a “carbon revolution” in the consumer goods packaging sector.