Wanda Group Invests $27.3 Billion to Build 200,000-Ton Maleic Anhydride, 50,000-Ton BDO, and 50,000-Ton Biodegradable Polyketone Projects

Recently, the Maleic Anhydride and Biodegradable New Material Green and Low-Carbon Innovation Demonstration Integration Project of Shandong Hongfeng Chemical Co., Ltd., located in the Dongying Port High-end Petrochemical Industrial Park in Shandong, is steadily advancing with civil construction.

The project has a total investment of 27.327 billion yuan and is a major project in Shandong Province, focusing on products such as maleic anhydride, BDO, and biodegradable polyketone resin, aiming to build a complete green chemical industry chain. The entire industrial chain is expected to be fully operational by 2027. This project has been successfully included in the list of major projects for Shandong Province in 2024.

Shandong Hongfeng Chemical Co., Ltd., established on April 20, 2023, is a subsidiary of Wanda Holding Group. It has a registered capital of 3.6 billion RMB and a paid-in capital of 5 million RMB. The company has a diversified equity structure, with shareholders including Shandong Wanda Cable Co., Ltd., Shandong Wanda Boto Tyre Co., Ltd., and Shandong Tianhong Chemical Co., Ltd.

Founded in 1988, Wanda Holding Group Co., Ltd. (hereinafter referred to as Wanda Group) is a modern international enterprise group integrating industries such as crude oil extraction, port terminals, petrochemicals, and international trade. With total assets exceeding 80 billion yuan and a workforce of over 13,000 employees, the group's main-board listed subsidiary, Nanjing Shenghang Shipping Co., Ltd., is the largest private maritime transportation enterprise for liquid chemicals and refined oil products in China. Wanda Group has been ranked among the Top 500 Chinese Enterprises and Top 500 Chinese Private Enterprises for many consecutive years, consistently placing among the top ten private enterprises in Shandong Province and ranking 2nd among the top 10 leaders in Shandong's high-end chemical industry.

Proprietor: Shandong Hongfeng Chemical Co., Ltd.

Location: Shandong Dongying Port High-end Petrochemical Industrial Park

Investment amount: 27.327 billion yuan

Project Progress: Civil Works

Project Overview: Key units of the main project include: a 5 million tons/year slurry-phase hydrocracking unit; a 4 million tons/year hydrocracking unit (dual train); a 3 million tons/year aromatics complex; a 2 million tons/year light hydrocarbon recovery unit; a 200,000 tons/year maleic anhydride unit; a 200,000 Nm³/h oil residue and coal-to-hydrogen production unit; and a biodegradable materials complex.

200,000 tons/year Maleic Anhydride and Hydrogen Integrated Utilization Sub-project

Phase I construction includes: 2 million tons/year light hydrocarbon recovery unit, 200,000 tons/year maleic anhydride unit (dual series of 100,000 tons/year each), 100,000 Nm³/h oil residue to hydrogen unit (including precious metal recovery and carbon capture), 200,000 tons/year sulfur recovery unit, 60,000 Nm³/h hydrogen production unit, etc. in Dongying Port Economic Development Zone.

Second phase construction includes: a 50,000 tons/year BDO unit, a 50,000 tons/year GBL+NMP joint unit, a 50,000 tons/year polyketone resin unit, and related storage and transportation, and public auxiliary facilities.

Estimated production start time: The entire industry chain project is expected to be fully operational by 2027.

Maleic anhydride, as an important organic chemical raw material, is a core intermediate for the production of products such as BDO and unsaturated polyester resins. BDO is a key raw material for the preparation of biodegradable plastics. The planned production capacity of 200,000 tons/year of maleic anhydride and 50,000 tons/year of BDO will provide stable upstream support for the production of degradable materials.

The 50,000 tons/year biodegradable polyketone resin, unlike traditional non-degradable aldehyde-ketone resins, adopts an alternating copolymerization process of olefins and carbon monoxide. It is biodegradable, aligns with the "dual carbon" strategy and environmental protection policies, and can be widely applied in fields such as biodegradable packaging, agricultural mulching films, and disposable medical consumables.