【Weekly New Materials Update】BASF Expands Production Capacity! Wanhua Chemical's Major Project Passes Final Inspection; Dow, Bayer, Evonik Launch New Products

US auto tariffs could deal a 13 trillion yen economic blow to Japan

On the 26th, U.S. President Trump announced a 25% tariff increase on imported automobiles, including cars imported from Japan. This will inevitably impact Japan's automotive industry, which accounts for nearly 30% of Japan's total exports to the U.S. As automobile exports decline, domestic production in Japan will also decrease, potentially affecting up to 13 trillion yen in economic value. While it is difficult to make a direct comparison, this amount is equivalent to 1.6 times the consumption by foreign visitors to Japan in 2024 and exceeds 2% of Japan's nominal GDP. Based on calculations, a 10% decline in Japan's automobile exports and production to the U.S. would result in a 1.3 trillion yen impact.

Turkey launches antitrust investigation into Apple over pricing manipulation and violation of promotional agreements

Turkey's Competition Board has recently announced the launch of a formal antitrust investigation into Apple, focusing on allegations of interference in dealer pricing and promotional agreements. According to local media Hurriyet Daily News, the investigation covers the resale of products such as computers and tablets, involving four major dealers including Easycep and HB Bilisim. The regulatory body accused Apple of potentially setting prices artificially through agreements, violating the provisions of the Competition Protection Law regarding market-based pricing.

LyondellBasell announced plans to expand propylene materials.

On March 27, LyondellBasell (LYB) announced plans to invest in expanding its propylene production capacity at the Channelview complex near Houston. The project is scheduled to begin construction in the third quarter of 2025 and is expected to be operational by the end of 2028. The facility will produce approximately 400,000 tons of propylene per year, providing 750 temporary jobs during peak construction and an estimated 25 permanent jobs once operational.

The imminent increase in tariffs on American cars has prompted Mexico to state that it is formulating measures to respond comprehensively after April 2.

Mexican President Lopez Obrador announced on March 27 that Mexico is formulating a comprehensive auto tariff response measure and will respond comprehensively to US auto tariffs after April 2. Lopez Obrador stated that there should be no tariffs in the United States-Mexico-Canada Agreement, and there should be no tariffs in free trade agreements; this is the spirit of the agreement. The Mexican government will always protect Mexico from the impact of US tariffs, and the door for talks with the US remains open. At the same time, Mexican Economy Minister Ebrard responded that they are currently negotiating with the US Department of Commerce to protect the import of auto parts made in Mexico. Mexico will report on the supplementary agreements for the steel and auto industries on April 2. Despite the US imposing a 25% tariff, Mexico's car exports will not be significantly affected.

LyondellBasell announced plans to expand this material.

Recently, LyondellBasell (LYB) announced plans to invest in expanding its propylene production capacity at the Channelview complex near Houston. The project is scheduled to begin construction in the third quarter of 2025 and is expected to be operational by the end of 2028. The facility will produce approximately 400,000 tons of propylene per year, providing 750 temporary jobs during peak construction and an estimated 25 permanent jobs once operational.

Bayer introduces new PET blister packaging in the pharmaceutical and healthcare industry for the first time.

Bayer has announced the launch of its Aleve brand in PET blister packaging in the Netherlands, a first in the healthcare industry. In collaboration with packaging expert Liveo Research, Bayer developed this new packaging format, replacing traditional polyvinyl chloride (PVC) with PET, significantly reducing the environmental impact of over-the-counter (OTC) blister packaging.

Shell is considering partially or fully closing its chemical division in Europe.

On March 25, news broke that energy giant Shell will evaluate all its global chemical divisions in the coming period, with its European chemical branches potentially facing partial or complete shutdowns. It is reported that Shell briefed investors on the morning of the 25th on its plans to enhance profitability in the coming years, which includes a renewed scrutiny of its chemical divisions in the U.S. and the Netherlands. In the U.S., Shell aims to explore strategic partnerships. However, in Europe, the company is reviewing the performance of its divisions, indicating that this could lead to partial or even full closures of these chemical operations. Currently, Shell operates large chemical complexes in Rheinland, Germany; Moerdijk, the Netherlands; and Mossmorran, the UK. Shell stated that market conditions in Europe are extremely challenging, with high energy costs, CO2 emissions, and network expenses.

Production capacity dynamics

Wanhua Chemical, Another Major Project Passes Acceptance Inspection

On March 24th, Wanhua Chemical's official website announced that the completion of environmental protection acceptance for the 50,000-ton waterborne resin project of Wanhua Chemical (Ningbo) Co., Ltd. The Wanhua Chemical (Ningbo) Co., Ltd., established on February 27, 2006, is a controlled subsidiary of Wanhua Chemical Group Co., Ltd. It mainly engages in research, development, production, and sales of MDI (Methylene Diphenyl Diisocyanate) series isocyanate products and aromatic polyamine series products.

Building a Global High-end Fluorochemical Industry Chain: The Second Phase of Changlu New Materials Project Commences Construction

On March 27, the second phase of the Changlu New Materials Fluorine-containing Organic New Materials Industrialization Project (hereinafter referred to as: Changlu New Materials Phase II Project), with a total investment of 500 million yuan, an additional annual production capacity of 2,072 tons, and a production value exceeding 400 million yuan, commenced construction in the Tianjin Nangang Industrial Zone. It is reported that the total area of the project in the Tianjin Nangang Industrial Zone is 120,800 square meters. The Phase II project, with a total investment of 500 million yuan, will construct two sets of hydrofluoroether equipment and supporting public utilities. Upon reaching full production capacity, it will add an annual production capacity of 2,072 tons and achieve an annual output value exceeding 400 million yuan. The project fully integrates resources from the Beijing-Tianjin-Hebei region, forming a collaborative innovation ecosystem encompassing basic research, application development, and industrial transformation.

BASF Coatings Shanghai Caojing Base Completes Capacity Expansion

On March 24, BASF's Coatings division announced that the expansion project of its polyester and polyurethane resin production lines at the Caojing base in Shanghai has officially commenced operations. The annual production capacity of the related resins has doubled from the initial 8,000 tons at the time of its completion in 2015 to 18,800 tons. Plans are in place to further enhance the production capacity of electrocoat emulsions and grinding resins through process optimization starting in 2026. In addition to this resin capacity upgrade, BASF Coatings also plans to further expand the production capacity of electrocoat emulsions and grinding resins at the Caojing base through process optimization in early 2026.

The polyethylene unit at Lanzhou Petrochemical was shut down.

March 27 report: Lanzhou Petrochemical's 200,000-ton high-pressure unit produces 2240H, the 60,000-ton low-pressure unit is shut down, the 300,000-ton full-density unit produces 6200, the 170,000-ton low-pressure unit is shut down, and the new line produces L5200.

Public Announcement of the Annual Production Project for 35,000 Tons of Aviation PMMA Transparent Material

On March 14th, Zhejiang Huashuaite New Materials Technology Co., Ltd. announced the environmental impact assessment information for its annual production of 35,000 tons of aviation PMMA transparent materials construction project. It is reported that the project has a total investment of 180 million yuan, plans to add 20,574 square meters (approximately 30.89 acres) of land, and will construct new aviation board production workshops, post-processing workshops, polymerization buildings, etc., with a total construction area of 25,500 square meters. Additionally, two aviation PMMA transparent material production lines will be added, forming an annual production capacity of 35,000 tons.

Tianjin Changlu Chemical New Materials Co., Ltd. starts the second phase of its fluorine-containing organic new materials industrialization project

On March 27, the second phase of the fluorinated organic new materials industrialization project (hereinafter referred to as the New Materials Phase II Project) by Tianjin Changlu Chemical New Materials Co., Ltd. commenced construction in the Nangang Industrial Zone. Upon completion, the project will become an internationally influential innovation base for fluorochemicals and a global high-end fluorochemical industry chain base. The New Materials Phase II Project is located in the Nangang Industrial Zone, covering a total area of 120,800 square meters. The first phase involves a total investment of 500 million yuan, which will include the construction of two hydrofluoroether units and supporting utilities. Once operational, it will add an annual production capacity of 2,000 tons, with an annual output value exceeding 400 million yuan.

The trial production of the annual 10 million square meters of high-end TPU film new material project is running smoothly.

On March 25th, the production workshop of the high-end TPU film new material project with an annual output of 10 million square meters, located in the Tangbei Electronics and Equipment Manufacturing Park of Shanxi Transformation Comprehensive Pilot Zone, was bustling with activity. Staff were working orderly at their respective posts. Since the trial production three months ago, the two production lines of this project have been running smoothly, producing over 20,000 meters of TPU film daily. The high-end TPU film new material project with an annual output of 10 million square meters is being constructed by Shanxi Zichuang New Material Technology Co., Ltd. It covers an area of 26 mu (approximately 4.16 acres), consists of three buildings, has a total construction area of 35,000 square meters, and involves a total investment of 220 million yuan. It mainly produces TPU films such as automotive paint protection films and architectural films. After reaching full production, it can achieve an annual output value of 200 million yuan.

The 100,000 tons/year BDO project in Shouguang, Shandong has successfully commenced production.

Recently, Shouguang City Lianmeng Petrochemical Co., Ltd. has delivered exciting news! The 100,000-ton/year BDO project, which was invested with 650 million yuan, successfully produced its first batch of products at 22:48 on March 20, 2025, after more than a year of day-and-night efforts. This officially marks the project's successful commissioning, representing a significant milestone in the company's transformation and development history.

The Romu America LiMA technology factory has started production, with an annual capacity of 250,000 tons of MMA.

On March 24, Röhm Group announced the successful commissioning of its large-scale industrial methyl methacrylate (MMA) plant in Bay City, Texas, USA, which utilizes the proprietary C2 route LiMA production technology. Dr. Hans Bohnen, CEO of Röhm, stated: The official commissioning of the Bay City plant is a significant milestone in Röhm's history and marks a new beginning for Röhm in producing next-generation MMA based on its proprietary LiMA technology. This not only helps protect the environment but also enhances supply stability amidst growing market demand. I sincerely thank our partners and suppliers, whose hard work has been instrumental in bringing this new technology to market.

Evonik introduces new auxiliary resin TEGO® Res 1100 to improve the deinking process of plastic waste

Evonik introduces the innovative auxiliary resin TEGO Res 1100, which facilitates faster and more efficient deinking of plastic films, thereby advancing the circular economy in packaging recycling. TEGO Res 1100 is a methacrylate copolymer that can be easily incorporated into conventional solvent-based ink formulations. It offers broad solubility and excellent compatibility with various resins and solvents, including alcohols and esters, while maintaining high ink performance. When added to solvent-based packaging inks, it enables the deinking of flexible packaging without requiring any modifications to existing equipment.

BASF's Performance Materials division launches innovative polyurethane recycling solutions, expanding its sustainable product portfolio.

March 26, 2025 - At CHINAPLAS 2025 International Rubber and Plastics Exhibition, BASF will demonstrate its leadership in the polyurethane field through diverse innovations, with its groundbreaking progress in polyurethane recycling technology becoming a major highlight of the event. Through the Loop product portfolio, BASF has introduced a series of polyurethane product solutions incorporating recycled materials, tailored for the footwear, automotive, and synthetic leather industries, which are now ready for market promotion.

SESOCO showcases a series of advanced materials for semiconductor manufacturing at Semicon China 2025.

Syensqo, a global leader in high-performance materials and chemical solutions, has announced its participation in Semicon China 2025, which will take place from March 26th to 28th at the Shanghai New International Expo Center. The group will exhibit under its new Chinese name, Shisuoke, reflecting the company’s strong commitment to the semiconductor manufacturing industry in Greater China.

Degradation Speed Increased by 8 Times! NatureWorks Launches New PLA Product

Recently, NatureWorks, a leading company in the bioplastics manufacturing field, announced the launch of the Ingeo Extend platform and Ingeo Extend 4950D product, bringing an innovative transformation to the production of biaxially oriented polylactic acid (BOPLA) films, with significant application potential in food packaging and other areas. Ingeo Extend 4950D, developed based on a new Ingeo PLA polymer platform, demonstrates outstanding advantages in the BOPLA film production process. For machinery originally designed to produce other polymers like polypropylene, manufacturers of biaxially oriented films can achieve up to 7 times the transverse stretching by using Ingeo Extend 4950D.

CJ Biomaterials, under South Korea's CJ Group, has officially signed a strategic cooperation agreement with Professor Ma Piming's research group from the School of Chemical and Materials Engineering at Jiangnan University (Environmental Friendly and Functional Composite Materials Research Center) in Wuxi. The two parties will jointly tackle research on PHA processing technology.

Nextek and Coveris Upgrade Waterless Purification Technology to Produce Food-Grade Recycled Film

Sustainable technology leader Nextek and flexible packaging expert Coveris have partnered to transform the paradigm of mechanical recycling of flexible films through the COtooCLEAN process. According to the partners, this technology aims to convert post-consumer polyolefin (PE and PP) packaging waste into high-quality food-grade recycled resins and films.

Dow introduces innovative thermal interface materials.

On March 25, Dow, in collaboration with Carbice, a leader in carbon nanotube (CNT) technology, showcased the latest results of their strategic partnership to the Chinese market for the first time during the 2025 Munich Shanghai Electronics Production Equipment Exhibition (productronica China). The innovative thermal interface material (TIM) products are designed for the transportation, industrial, consumer electronics, and semiconductor industries.

Establishing a plastic recycling plant in OMV

OMV announces the expansion of its innovative ReOil technology at the Schwechat refinery near Vienna. The new plant can process up to 16,000 metric tons of difficult-to-recycle mixed plastic waste annually, equivalent to the plastic waste generated by 160,000 Austrian households each year.

BASF and Sika jointly launch amine-based epoxy curing agents for floor coatings

On March 17, BASF and Sika announced that they have jointly developed a new amine-based epoxy resin curing agent, which has been officially launched in the market under the BASF Baxxodur EC 151 brand. The product is suitable for floor coating applications, including production workshops, warehouses, assembly workshops, and parking lots. Baxxodur EC 151 can give epoxy resin floor coatings low viscosity and excellent fluidity. In this R&D collaboration, Sika was responsible for developing the high-performance amine curing agent and successfully applying it to Sikafloor floor coatings; BASF was responsible for developing a production process suitable for this curing agent and scaling it up from the laboratory to commercial production.

Kuraray's Kashima Plant in Japan produces TPE and liquid rubber certified by ISCC PLUS.

On March 26, 2025, Kuraray Co., Ltd. announced that its Kashima Plant (Kamisu City, Ibaraki Prefecture, Japan) has obtained ISCC PLUS certification for its thermoplastic elastomers SEPTON and HYBRAR, as well as liquid rubber. ISCC PLUS is an internationally recognized certification program for sustainable products.

Huntsman collaborates with Räder-Vogel to develop a new generation of anti-static rollers

On March 17, Huntsman announced that the new generation of PEVOTEC anti-static polyurethane-based rollers developed in collaboration with roller and wheel manufacturer Rder-Vogel has been launched for sale. The product uses Huntsman's TECNOTHANE cast polyurethane elastomer material. In the short term, PEVOTEC anti-static rollers will primarily target four application areas: automatic guided vehicles used in warehouses and logistics for moving products; automatic parking systems that use elevators to park vehicles; trolleys and overhead pulleys in cleanrooms; and hoisting shafts in mining operations.

Covestro TDI plant officially commissioned

Recently, Covestro announced the successful completion of the modernization of its TDI (toluene diisocyanate) plant in Dormagen, which has now been officially commissioned. This plant is the largest TDI production facility operated by Covestro in Europe, with an annual capacity of 300,000 tons, utilizing the gas-phase technology developed by Covestro. The company initiated the renovation in the summer of 2023, investing millions of dollars. The successful upgrade not only strengthened the plant's market position amidst high energy costs but also significantly enhanced the competitiveness of TDI production in Europe, while providing customers with TDI products that have a lower carbon footprint.