SABIC Expands PPE Oligomer Capacity! EU Reaches Deal on Circular Economy Rules for Automotive Sector

International News Highlights

Corporate News: SABIC expands capacity of PPE oligomers for PCBs and 5G applications

Recycling News: Samsara Eco partners with outdoor brands to solve synthetic fiber recycling challenge and create circular nylon

Capacity News: Mitsui Chemicals’ joint venture announces 100,000-ton MDI capacity expansion, to be completed in 2027

Policy News: EU reaches agreement on new circular economy rules for automotive sector: recycled materials and end-of-life management at core

Macroeconomic News: RMB exchange rate hits 14-month high; experts say two-way fluctuation remains the main trend

Price Information: CNY/USD central parity rate at 7.0656, down 18 pips

Detailed International News:

1. Brückner Group Acquires Hennecke to Strengthen PU Processing Capabilities

Plastmatch learned on December 15 that Germany’s Brückner Group recently announced the acquisition of Hennecke Group, integrating core technologies in polyurethane (PUR) processing into its global product portfolio to expand business scope.

Hennecke’s professional expertise in reactive plastics will equip Brückner, a Germany-based group, with high-tech solutions based on material innovation. The technology applies to multiple industries including construction, furniture, and refrigeration, and is expected to create new diversified development potential for the group.

2. Mitsui Chemicals’ JV Announces 100,000t/a MDI Capacity Expansion, Completion in 2027

Mitsui Chemicals, Inc. announced today that its joint venture, Kumho Mitsui Chemicals, Inc., has decided to further expand the capacity of its methylene diphenyl diisocyanate (MDI) production facilities.

The Yeosu plant in South Jeolla Province, South Korea, will add 100,000 tons per year of capacity (increasing from 610,000 tons/year to 710,000 tons/year), with construction scheduled to start in February 2026 and completion in May 2027.

MDI is a key raw material for polyurethane, widely used in automotive parts, furniture and bedding, thermal insulation materials for residences and refrigerators, spandex, and various adhesives. Driven by global policies to improve residential thermal insulation performance for climate change mitigation and rising demand from economic growth, MDI demand is expected to grow at an annual rate of 5% in the future.

3. EU Reaches Deal on Circular Economy Rules for Automotive Sector: Recycled Materials & EOL Management at Core

Plastics: Within 6 years of the new rules taking effect, the proportion of recycled plastics in each new vehicle model shall be no less than 15%; it will be raised to 25% within 10 years, of which 20% must come from plastic recycled from end-of-life vehicles or parts removed during use ("closed-loop recycling").

Metals and Critical Raw Materials: Within 2 years of the regulation’s entry into force, the European Commission will issue targets for the use of recycled steel and aluminum based on feasibility studies, and simultaneously assess the possibility of setting targets for recycled critical raw materials.

4. Samsara Eco Partners with Global Outdoor Brands to Solve Synthetic Fiber Recycling Challenge and Build Circular Nylon

Recently, a major breakthrough has been made in synthetic fiber recycling. The Nylon Materials Collective has connected a recycling tech startup with European outdoor brands to jointly address the synthetic fiber recycling challenge, bringing new hope to the industry’s sustainable development.

News from Geraldton, Australia, shows that Samsara Eco’s commercial synthetic recycling plant here was officially put into operation in September this year. Currently, there is a significant circular gap in the nylon sector. As a high-performance material, nylon has an annual output of 7 million tons but a recycling rate of less than 2%, with recycling mainly limited to fishing nets and carpets.

Meanwhile, as the second-largest synthetic fiber after polyester, nylon is widely used in windbreakers, backpacks, swimwear, etc., yet most of these products end up in landfills, causing severe resource waste and environmental burden.

5. SABIC Expands Capacity of PPE Oligomers for PCBs and 5G Applications

SABIC announced that the production of specialty oligomers based on polyphenylene ether (PPE) technology will enter another phase of incremental expansion.

This commitment builds on previous capacity increases in Asia to meet the rapidly growing demand for high-performance printed circuit boards (PCBs) in data centers for artificial intelligence (AI) and 5G applications. The further expansion of oligomer production is scheduled for completion in the second half of 2026, which will help PCB manufacturers maintain fast delivery times amid sustained growth in product demand.

SABIC’s flagship product in this field is NORYL SA9000, a modified low-molecular-weight bifunctional PPE oligomer grade for high-performance multi-layer copper-clad laminates (CCL) used in 5G base stations and high-speed AI server PCBs.

Overseas macro market:

The RMB exchange rate rises to14-month high Experts believe that two-way fluctuations will remain the main tone. Recently, the exchange rate of the Chinese yuan against the US dollar has shown a stable upward trend overall.On December 15, both onshore and offshore RMB exchange rates surpassed the 7.05 mark, reaching a new high in nearly 14 months.

Onshore and offshore RMB exchange rates against the US dollar hit a new high.The highest in 14 months.The onshore renminbi against the US dollar rose to the highest level during the session.On October 9, 2024, the offshore RMB exchange rate against the USD reached 7.0500 for the first time since then. On December 15, the offshore RMB exchange rate against the USD peaked at 7.046 during trading, marking a new high since early October 2024. Ming Ming, Chief Economist at CITIC Securities, pointed out that the Central Economic Work Conference mentioned the need to "maintain the RMB exchange rate at a reasonable and balanced level." The external environment for the RMB exchange rate in 2026 is relatively favorable, and the central bank's policy to stabilize the exchange rate will remain flexible, adjusting as needed to mitigate expectations of unilateral exchange rate trends. The RMB exchange rate center may moderately rise to around 6.9-7.0.

[Chinese Vice Minister of Finance Liao Min held a video call with the Director General for International Finance at the UK Treasury, White] On December 12, 2025, Vice Minister of Finance Liao Min held a video call with Lindsay White, Director General of International Finance at the UK Treasury, upon invitation. The two sides mainly exchanged in-depth views on cooperation between China and the UK within the G20 finance channel and under the framework of the China-UK Economic and Financial Dialogue.

National Bureau of Statistics:The employment situation in November was generally stable, with the urban surveyed unemployment rate remaining unchanged from the previous month. From January to November, the average nationwide urban surveyed unemployment rate was 5.2%. In November, the nationwide urban surveyed unemployment rate was 5.1%, remaining unchanged from the previous month. The surveyed unemployment rate for local household labor was 5.3%; for non-local household labor, it was 4.7%, with the surveyed unemployment rate for non-local agricultural household labor being 4.4%. In 31 major cities, the urban surveyed unemployment rate was 5.1%, unchanged from the previous month. The average weekly working hours for employees in enterprises nationwide was 48.6 hours.

National Bureau of Statistics:In November, the national economy continued to maintain a steady and progressive development trend. National Bureau of Statistics: Overall,In November, the national economy operated steadily overall, continuing the trend of stable and progressive development. However, there are many external unstable and uncertain factors, and domestic effective demand is insufficient, posing numerous challenges to economic operation. In the next stage, we will adhere to the general principle of seeking progress while maintaining stability, implement more proactive and effective macro policies, continue to expand domestic demand, optimize supply, improve increments, activate stock, and focus on stabilizing employment, enterprises, markets, and expectations, to promote a qualitative effective enhancement and reasonable quantitative growth of the economy.

Saudi Crown Prince and Prime Minister Mohammed meets with Wang Yi. On the 14th, Saudi Crown Prince and Prime Minister Mohammed met with Wang Yi, a member of the Political Bureau of the CPC Central Committee and Minister of Foreign Affairs, in Riyadh. Mohammed stated that Saudi Arabia is willing to further deepen cooperation with China in the fields of oil and gas, new energy, artificial intelligence, and high technology. Saudi Arabia supports China in hosting the second China-Arab States Summit and the second China-Gulf Cooperation Council Summit in 2026, and is willing to promote the early completion of negotiations on the China-Gulf Free Trade Agreement.

Price Information:

The central parity rate of RMB against USD is reported.7.0656, down 18 points; previous trading day's central parity rate was 7.0638, previous trading day's official closing price was 7.0554, and previous night session closed at 7.0546.

Upstream raw material USD market price

CFR Northeast Asia $745/ton, CFR Southeast Asia $725/ton.

Northeast Asia PropyleneFOB Korea average price to $715/ton, CFR China average price to $750/ton.

CFR North Asia, Propane558-560 USD/ton; butane 613-615 USD/ton.

South China Frozen CargoIn January, the CFR price for propane is 582-592 USD/ton; for butane, it is 572-582 USD/ton.

Taiwan region CIF price, propane558-560 USD/ton; butane 613-615 USD/ton.

【LLDPE USD market price

Film790-810 USD/ton (CFR Huangpu);

Injection Molding:980 USD/ton (CFR Huangpu);

【HDPE USD Market Price

Film880-895 USD/ton (CFR Huangpu);

Injection molding: 780 USD/ton (CFR Huangpu);

Hollow:$820-825/ton (CFR Huangpu);

Pipe==1000 USD/ton (CFR Huangpu);

【LDPE USD market price

Film$990-1015/ton (CFR Huangpu);

Coating: 1050-1180 USD/ton (CFR Qingdao).

【PP USD market price

Injection Molding:785 USD/ton (CFR Huangpu);

Gathering:$830-855/ton (CFR Nansha);

Membrane material:970-985 USD/ton (CFR Huangpu);

Transparency1065 USD/ton (CFR Huangpu);

Pipe.1,100 USD/ton (CFR Shanghai).