Another 10-Billion-Yuan Listed Company Officially Enters PEEK Industry

On July 31, Guoen Co., Ltd. announced that the company has completed polyether ether ketone (PEEK...)）The development of material production technology and core processes forSeize the opportunity in the special engineering plastics market.The company plans to establish a vertically integrated platform covering the entire PEEK industry chain from polymerization to compounding to finished products through its wholly-owned subsidiary Zhejiang Guoen Chemical Co., Ltd. (hereinafter referred to as "Zhejiang Guoen Chemical"). It will build a styrene engineering materials polymerization pilot platform and a 300,000-ton/year organic polymer modification and composite materials project.The project has obtained the filing issued by the Economic Development Bureau of the Zhoushan High-tech Industrial Park Administrative Committee.

The total investment of the project is reported to be 960 million yuan, and it is located in the Zhoushan High-tech Industrial Park in Zhoushan City, Zhejiang Province. The total land area is 100,428.0 square meters, approximately 150.6 acres. The project plans to construct two PEEK polymerization production lines, one pilot platform device for styrene-based engineering material polymerization, and 36 production lines for modified and composite materials.

According to the information, Zhejiang Guoen Chemical was established on November 24, 2022, with a registered capital of 100 million RMB. This new construction...The project products will prioritize high-growth application scenarios with significant potential for increasing localization rates.

It is worth mentioning that on July 14th,Guoen Future (Shenzhen) Technology Co., Ltd. was established.Mainly engaged in the research and development of intelligent robots; sales of service consumer robots; sales of intelligent robots; development of artificial intelligence theory and algorithm software; development of artificial intelligence basic software; development of artificial intelligence application software, etc.

From high-performance specialty engineering materials to establishing a robotics company, it's hard not to think that Guoen is playing a strategic game. Currently, Guoen Co., Ltd.'s main businesses are centered around two core industries: major chemicals and big health.In 2024, the large chemical sector accounts for 90.38% of the total revenue. The company's sales of modified plastics reached 996,000 tons, representing a year-on-year increase of 6.7%, while sales of green petrochemical products reached 446,400 tons, representing an 18% year-on-year increase.

It is worth mentioning that on June 26,Guoen Co., Ltd.Still submitting the prospectus to the Hong Kong Stock Exchange and planning to list on the main board of Hong Kong, it may become the first A+H company in the modified plastics industry. In 2024, Guoen Co., Ltd. achieved a revenue of 19.22 billion yuan.As of August 1, the market value is 9.697 billion yuan.

Earlier than Guoen Co., PEEKAs one of the most popular specialty engineering plastics today, the market is already crowded with competitors. Currently, the global market is mainly dominated by Wego (7,150 tons), Evonik (1,800 tons), and Solvay (2,500 tons). Key domestic companies include Jida Special Plastics, Jiangsu Junhua, Zhongyan Co., Pengfulong, Haoran Special Plastics, Water Co., Kingfa Technology, Panjin Weiyingxing, Nanjing Julong, among others. Additionally,Wanon Corporation already has a pilot production line, and Wanhua Chemical has also mastered the relevant technology. There are even more companies simply involved in modified products. For example, Politer recently officially announced a 400,000-ton production line, and the second phase includes modified PEEK materials.

In 2024, the global PEEK market size is approximately 900 million USD, representing a year-on-year growth of 5%. Among this, the size of the Chinese PEEK market is about 1.92 billion RMB, accounting for 41.8% of the global market share and achieving steady growth.

Major driving markets for growth:

First of all, the electric control system of new energy vehicles (vehicle PEEK consumption 1.2 to 2.0 kg, including insulation rings for the electric control system and sealing components for the battery pack, etc.).There are many relevant application cases. For example, in June this year, Solvay announced that its Ajedium™ PEEK insulation slot liners and wedges, together with KetaSpire® PEEK magnet wire insulation materials, were selected by Mavel Electric Power to be integrated into the latest high-voltage motor developed for a well-known high-end sports car manufacturer.

Secondly, the semiconductor industry (domestic substitution rate of wafer carriers surpasses 40%), high-temperature components for aircraft engines (operating temperature ≥30 ℃) and composite materials for fuselage (weight reduction rate 15%~20%), medical implants, 5G base station antenna brackets, industrial high-temperature bearings, main beam cap materials for wind turbine blades,Hydrogen storage cylinder liner coating andSealing components for the petrochemical industry, etc.

In addition, it also demonstrates strong application prospects in emerging fields, such as leading robots and the low-altitude economy.

In the field of embodied robotics, PEEK can be applied to joints and transmission components of humanoid robots. With a density of only 1/3 to 1/4 that of metals, PEEK offers excellent wear resistance and self-lubricating properties, effectively reducing friction and wear during robot joint movements, decreasing energy consumption, and enhancing the service life and motion precision of joints. It also enables lightweighting without sacrificing performance. Last November, Tesla's humanoid robot Optimus-Gen2 used PEEK material, reducing the overall weight by 10 kilograms. Toray has also developed ultra-low friction coefficient PEEK (μ≤0.15), advancing the iteration of robotic joint components, achieving a 35% reduction in component weight while lowering energy consumption by 22%.

In the field of low-altitude economy, carbon fiber reinforced PEEK composites can be used to manufacture drone frames, propellers, and engine components, as well as lightweight structural parts for low-altitude flying vehicles, such as seats, doors, and window frames. They can also be used for the housings of sensors and control systems.

Seeing these high-end and large-scale applications, it is not difficult to understand why PEEK is so popular overall.Due to the barriers of raw materials, polymerization process technology patents, and modification technology.The gap between domestic and foreign markets is significant, especially in medical-grade, aerospace-grade, semiconductor-grade, and bio-based PEEK, where the utilization rate of high-end production capacity is only 42%, while the overcapacity rate of low-end production reaches 35%. However, these high-end sectors are gradually penetrating the market.The domestic market still has a large gap.