Abu Dhabi’s Acquisition of Covestro Paused, Wanhua Chemical Gains Kuwait Investment, Shenghong POE Production Reshapes Market Landscape

This week's major newsAbu Dhabi National Oil Company's acquisition of Covestro faces a suspension of the EU investigation, causing sharp fluctuations in stock prices; Wanhua Chemical is backed by an investment from a Kuwaiti petrochemical giant, enhancing its international petrochemical business layout; Shenghong Petrochemical successfully launched a 100,000-ton POE project, becoming one of the few companies globally to supply both EVA and POE, marking a reshaping of the landscape in the POE film sector.

In terms of production capacityPrite's 50,000-ton modified plastics project has officially started production, covering the new energy vehicle and energy storage sectors; Mitsui Chemicals' Omuta plant TDI unit is scheduled to resume production on September 8; Yulong Petrochemical is adding 3.4 billion yuan in investment to the aromatics industry chain to enhance the capacity of high-end chemical raw materials.

In terms of material innovation and applicationLife Biosciences globally debuts BioFleax™ bio-based PEF fibers, promoting sustainable development of polyester; Origin Materials launches commercial PET bottle caps, supporting packaging circularity; Kaysai Bio’s bio-based polyamide composite refrigerated containers delivered, expanding a trillion-yuan market. For more industry updates, please stay tuned to this issue of [Weekly New Materials & Plastics Express].

Company News

Abu Dhabi National Oil Company faces risks in acquiring Covestro, stock price plummets.

Recently, the stock price of polymer materials manufacturer Covestro experienced significant fluctuations. The root of this volatility lies in new concerns from the outside world regarding the Abu Dhabi National Oil Company (Adnoc)'s plan to acquire Covestro, with the core issue revolving around the progress of investigations by the EU competition regulatory authorities.

As early as July, the European Commission had initiated a subsidy investigation into the €14.7 billion acquisition, focusing on potential subsidy behaviors by the UAE. The Commission is particularly concerned about phenomena that may distort market competition, such as the UAE providing unlimited government guarantees and capital injections, which could grant Adnoc an unfair competitive advantage. Such subsidized financing could systematically adversely affect European chemical companies. The Commission was originally scheduled to announce the investigation results on December 2nd, but this Wednesday, the investigation took an unexpected turn—the European Commission temporarily suspended the investigation, citing that Adnoc had not yet fully provided the requested information. A new decision date will be determined after the investigation resumes.

Evonik Launches New Market Expansion Plan

Evonik has officially launched the "Next Markets Program" to further tap into growth potential. The program aims to explore new markets closely related to the company's core business and secure a favorable position in emerging markets. This initiative is also a response to the profound geopolitical and social changes, market landscape reshaping, and evolving customer demands. In its initial phase, the program will focus on rapidly changing fields with particularly urgent needs for innovative solutions, such as circular packaging, plastic recycling, defense, and aerospace.

Xuyang 20Ten thousand tons of Nylon 66Reapproval of the new materials project

On September 1st, the Heze Municipal Bureau of Ecology and Environment released information about Yuncheng Xuyang.New MaterialsEnvironmental Impact Assessment Acceptance Announcement for the Annual Production of 200,000 Tons of Nylon 66 New Materials Project by the Limited Company.

Yuncheng Xuyang Group is a large modern coal chemical enterprise invested and constructed within the Yuncheng Chemical Industry Park (a provincial-level chemical industry park) in Heze, Yuncheng, Shandong Province. Within the park, Yuncheng Xuyang Group includes Yuncheng Xuyang Energy Co., Ltd., Shandong Yongzhi Chemical Co., Ltd., Shandong Hongding Chemical Co., Ltd., and Yuncheng Xuyang New Material Co., Ltd.

The three major chemical giants of Japan are joining forces to develop this bio-based product.

On September 1st, Asahi Kasei Corporation, Mitsui Chemicals, Inc., and Mitsubishi Chemical Corporation announced the joint establishment of a limited liability partnership, Setouchi Ethylene LLP. The three companies focus on researching decarbonization technologies and capacity optimization for two ethylene production facilities in the western region of Japan, with plans to achieve a green transformation by 2030.

Wanhua Chemical, a world giant invests!

On September 3, Wanhua Chemical announced that, in order to enhance the security of raw material supply for its petrochemical business, diversify operational risks, and accelerate the company's internationalization process, its subsidiary Wanhua Chemical (Yantai) Petrochemical Co., Ltd. and Kuwait Petroleum International Company (PIC) have entered into a joint venture. PIC will inject USD 638 million (approximately RMB 4.56 billion) into Wanhua Chemical (Yantai), acquiring a 25% equity stake.

According to reports, the parent company of Kuwait Petrochemical Industries Company (PIC) is Kuwait Petroleum Corporation (KPC). Established in 1980, KPC is one of the world's major oil and energy groups that consolidates all state-owned elements of Kuwait's oil sector under one corporate framework. It is responsible for the exploration, production, and sales of all hydrocarbon resources within Kuwait. Currently, the export volume of LPG (Liquefied Petroleum Gas) is approximately 4.5 million tons per year, and the production of naphtha is about 10 million tons per year, with business operations spanning six continents.

Ningbo Huaxiang plans to establish a polyether ether ketone (PEEK) joint venture with Fengmei Chemical.Joint Venture Materials Company

On the evening of August 27, 2025, Ningbo Huaxiang announced that the company plans to jointly invest with enterprises controlled by the actual controller, Ningbo Fengmei Chemical Technology Co., Ltd. and Ningbo Fengmei PICO Enterprise Management Partnership (Limited Partnership), to establish Ningbo Fengmei PICOKE New Material Co., Ltd. (referred to as the joint venture company). The registered capital is 50 million yuan, with the company contributing 15 million yuan in cash, accounting for a 30% shareholding. The joint venture company will mainly focus on the research and application of polyether ether ketone (PEEK) materials. Regarding the products it produces, Ningbo Huaxiang and its subsidiary companies have the right to priority supply and preferential pricing from the joint venture company.

Daxie Petrochemical 2×4510,000 tons /The first batch of products from the annual polypropylene plant has been shipped.

Recently, in front of the stereoscopic warehouse of Daxie Petrochemical’s 2.45 million tons/year polypropylene unit, a truck fully loaded with PPH-T03 polypropylene pellets slowly drove out of the plant. This not only marks the official debut of the first batch of polypropylene products from the new unit, but also signifies the successful completion of the entire process from construction and commissioning to market launch. It injects new vitality into the company’s polypropylene market and lays a solid foundation for the development of a high-end chemical industry chain.

Production Capacity Dynamics

Annual output 5The 10,000-ton modified plastic project has been put into production.

Recently, the high-end automotive modified materials production base of Pulit in Anhui officially commenced operations, with a total investment exceeding 1 billion yuan. This marks an important milestone in the company’s in-depth advancement of its dual-core strategy of “New Materials + New Energy.”

It is reported that the base will achieve an annual production capacity of 50,000 tons and an annual output value of 700 to 800 million yuan, with business covering four major areas: intelligent equipment, low-altitude economy, new energy vehicles, and energy storage equipment.

Mitsui Chemicals Omuta Plant TDI, JapanThe installation is scheduled for September. Resumption of production in about days

On September 3, 2025, Mitsui Chemicals released the latest update on the chlorine leak incident at its Omuta plant in Japan. At the same time, Mitsui Chemicals announced that it would begin preparations to restart the previously suspended TDI plant, with plans to resume production around September 8, 2025.

The new project of Shenghong Petrochemical was successfully commissioned and has achieved mass production.

On September 4th, the news conference for the successful commissioning of Shenghong Petrochemical's 100,000-ton/year POE project and the signing ceremony for the long-term supply strategic cooperation were held in Lianyungang, Jiangsu. The first batch of 320 tons of premium products was simultaneously dispatched for delivery, marking a new breakthrough in China's transition from trailing to running alongside in the high-end polyolefin sector. Shenghong Petrochemical has also become a leading global enterprise capable of independently supplying both photovoltaic encapsulation materials EVA and POE.

Niren Chemical's brand new TPUThe modified production line was successfully started on the first attempt.

On the afternoon of September 2, 2025, Niren Chemical's brand-new TPU modification production line successfully commenced operations at the Fengxian base after only 15 days. Its main functions include serving the flame-retardant wire and cable industry, providing antistatic materials for the electronics field, mixing and coloring for shoe material foaming, and producing 3D printing filaments in the TPU modification materials sector. The modified base material masterbatches are produced by Niren Chemical's TPU polymerization production line, offering robust capacity and quality assurance for customers with TPU modification needs.
Yulong Petrochemical reinvests 34Hundred-million-level! Aromatics Industry Chain Enhancement Project

On September 1st, the Social Stability Risk Assessment for the High-Quality Upgrading Project of the Aromatics Industry Chain (Phase I) of the Yulong Island Refining and Chemical Integration Project was announced. The project is being developed by Shandong Yulong Petrochemical Co., Ltd., and is located on Island No. 3 of the Shandong Yulong Petrochemical Industrial Park in Longkou City, Shandong Province, covering a total area of approximately 7.1 hectares. The total investment for the project is about 3.405 billion yuan (including tax), with a construction period of 18 months. The plan is to add production units such as disproportionation, isomerization, and adsorption separation based on the aromatics complex unit of the Phase I Yulong Island refining and chemical integration project. Upon completion, the project will be capable of producing products such as paraxylene (1,4-dimethylbenzene) and dry gas.

Innovative Materials

Borealis' first medical-grade product Bormed™ RG868MOSupporting the local and global healthcare industry in the UAE.

Borouge is proud to announce the official launch of Bormed™ RG868MO at its facility in the United Arab Emirates. This is an advanced polypropylene random copolymer designed to meet the stringent requirements of the medical industry. The RG868MO product is part of the Borealis Bormed™ portfolio, fully reflecting Borouge and Borealis’s shared commitment to innovation, safety, and sustainability in the field of medical-grade materials.

Bormed™ RG868MO possesses a range of unique properties, making it particularly suitable for high-performance medical applications.*

◈ High transparency and glossiness: Ensure clear visibility and aesthetic appeal of diagnostics and pharmaceutical packaging

◈ Excellent balance of rigidity and impact resistance: providing sturdy protection while maintaining flexibility

◈ Rapid crystallization capability: shortens molding cycle and improves production efficiency

Sterilization Compatibility: Suitable for ethylene oxide (EtO) and steam sterilization, compliant with global medical standards.

BioFleax™Lifu Bio Bio-based PEFBrand Official Release

Recently, Leaf Bio held the "All-Bio-based Polyester, Interpreting the Future of Fibers---BioFleax™ PEF Launch Event" at the Textile Materials Innovation Forum Area of the Shanghai National Exhibition and Convention Center. This is the world's first 100% bio-based polyester fiber to achieve mass production, providing a new path for polyester to break free from petrochemical dependence and opening up new possibilities for sustainable fashion.

Materials Application

Origin MaterialsThe first recommendation is commercial PET.

In August 2025, Origin Materials, in partnership with the alkaline beverage brand Power Hydration, will launch water products featuring its 1881 model PET bottle caps in select stores in California, USA. This marks the industry's first retail combination of PET bottle caps and PET bottle bodies, offering complete recycling potential. Previously, in February, Origin launched the CapFormer production line at its Michigan plant in the USA, with an annual production capacity of hundreds of millions of units. In July, it also partnered with the Dutch company Hordijk to achieve mass production of PET bottle caps in the billions in Europe. The bottle cap features a uniform material design, is compatible with recycled PET, and balances lightweight with sealing performance, promoting the development of packaging circularity.

Kaisa Bio officially enters another 100 billion market!

On August 28, the world's first bio-based composite refrigerated container, made from continuous fiber composite materials produced by "Cathay Biotech," was officially delivered at CIMC Qingdao Container Factory in Shanghai.

This product is jointly developed by three parties: Cathay Biotech produces bio-based polyamide continuous fiber composite materials, and the other two partners are:

Sinotrans Container Lines Co., Ltd.: A wholly-owned subsidiary of China Merchants Energy Shipping under China Merchants Group, engaged in comprehensive logistics services for container liner shipping.

Shanghai Huanyu Qingdao Container Factory: A wholly-owned subsidiary of COSCO Shipping Development Group's Shanghai Huanyu Logistics.

Editor: Lily