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Xinhengcheng, IPDI has been put into production!

New Chemical Materials 2025-04-01 14:45:15

On March 30, Xinhecheng announced on the interactive platform that the company's Isophorone Diisocyanate (IPDI) project has been approved for a production capacity of 21,000 tons. The project will be built in phases, and the first phase of the project has already been put into production.

Last week, Evonik and Covestro successively issued force majeure declarations for IPDI and its derivatives.

According to the latest news on March 31, affected by the force majeure of Covestro's IPDI supply in China, the domestic IPDI market price has surged. End users are mainly following small orders, paying attention to the end users' sentiment for price increases and the sustainability of orders. On that day, the quoted price in East China was 38,500 yuan/ton, an increase of 2.67% compared to the previous week and an increase of 1.32% compared to the previous month.

Isophorone diisocyanate (IPDI) is a cycloaliphatic diisocyanate that is widely used in the plastics, adhesives, pharmaceuticals, and fragrance industries. As of the end of 2023, only five companies—Evonik (50,000 tons/year), Covestro (35,000 tons/year), BASF (5,000 tons/year), Converge (20,000 tons/year), and Wanhua (30,000 tons/year)—have production capabilities, with a total global capacity of approximately 140,000 tons.

Xinhacheng IPDI Project

In the investor activity information table released by Xinhua in March 2025, it was shown that in the new energy materials and environmental protection new materials project (HA project), products such as HDI, ADI, and IPDA have been put into production, with an annual production capacity of 20,000 tons of IPDA, 4,000 tons of ADI, and 3,000 tons of HDI. In 2024, these products were mainly in the process of customer sampling and market development. Currently, the feedback from downstream customers is positive. The large-scale production construction is still in the preparation stage, and the approval procedures have been completed. Production will commence based on market conditions at an appropriate time.

The new energy materials and environmentally friendly new materials project, with a total investment of approximately 4.5 billion yuan, will have an annual production capacity of 103,000 tons of hexamethylene diisocyanate (HDI), 21,000 tons of isophorone diisocyanate (IPDI), 20,000 tons of biuret, 83,000 tons of HDI trimer, and 40,000 tons of isophorone diamine (IPDA) upon completion. The HDI production capacity will be built in three phases: 3,000 tons in the first phase, 50,000 tons in the second phase, and 50,000 tons in the third phase.

It is worth mentioning that in August 2024, Shandong Xinhengcheng Fine Chemical Technology Co., Ltd. announced a technical transformation project with an annual production capacity of 1500 tons of HMI. This project aims to upgrade the existing production facilities for hexamethylene diisocyanate (HDI, annual capacity of 3000 tons) and isophorone diisocyanate (IPDI, annual capacity of 1000 tons) within the current workshop. By purchasing a new set of production equipment and adopting a gas-phase phosgene process, the project will enable the co-production of three products: HDI, IPDI, and hydrogenated phenylmethane diisocyanate (HMI), maintaining the capacity of HDI and IPDI while adding a new annual production capacity of 1500 tons for HMI.

Xinchem's ongoing/proposed projects

New Harmony, founded in the fine chemical industry, takes "Chemistry+" and "Biology+" as its core technology platforms, producing various functional chemicals for nutrition products, fragrances, new materials, and active pharmaceutical ingredients. Currently, it is one of the world's top four producers of vitamins.

The main projects under construction and planned by Xinhua include liquid methionine project, Tianjin nylon new material project, PPS and other new material projects, etc.

Liquid Methionine Project

Sinochem and Sinopec jointly established Ningbo Zhenhai Refining Sinochem Biotechnology Co., Ltd., collaborating to invest in the construction of an 180,000-ton/year liquid methionine project. Both parties hold a 50%:50% equity ratio and jointly manage the company, with Sinochem responsible for technology and sales, while Sinopec provides resources such as site and raw material supply. The project is expected to be largely completed by the fourth quarter of 2024, with pre-commissioning preparations currently underway. Preliminary customer sampling and market development activities have already commenced.

Tianjin Nylon New Materials Project

The Tianjin Nankang Nylon New Materials Project is currently in the project approval stage. It has obtained the marine rights certificate and will commence construction after the completion of the legal approval procedures. The project company has established a research and development team since 2017, continuously optimizing and enhancing technology. After small-scale and pilot tests, it has finally determined industrialization. The new material products have broad downstream applications, and the future development prospects are promising. The total investment in the project is approximately 10 billion yuan, with the first phase involving the construction of a 100,000 tons/year adiponitrile-adipamine facility, with an intended investment of 3 billion yuan. The second phase is planned to construct a 400,000 tons/year adiponitrile-adipamine facility and extend downstream to build a 400,000 tons/year nylon 66 project.

PPS (Polyphenylene Sulfide) project

PPS is a special engineering plastic with high mechanical strength, heat resistance, chemical resistance, thermal stability, excellent electrical properties, radiation resistance, and flame retardancy. Its applications are widespread. The current production capacity of new and improved PPS is 22,000 tons, which is currently in normal production. The total approved capacity is 30,000 tons, with the remaining 8,000 tons to be expanded according to market conditions. At the same time, efforts are continuously being made to develop new application scenarios for downstream PPS products.

Overseas Expansion Planning

Additionally, it is worth mentioning that NHU has also made significant strides in overseas expansion, with its products sold in over 100 countries and regions, accounting for more than 50% of its total sales. The primary overseas markets and customer bases are in the Americas, Europe, and Southeast Asia. The company places strong emphasis on global expansion and market development. In 2025, NHU established the operational guiding principle of "accelerating overseas market expansion." Currently, it has set up sales centers in Europe, South America, and Southeast Asia, as well as R&D centers in Singapore and Japan, prioritizing the internationalization of sales and R&D. The selection of overseas factory locations and projects will be determined in alignment with the company's future development plans.

In terms of performance, NHU achieved growth in both sales volume and prices of major products in its nutritional products segment in 2024, with an estimated net profit of 5.8 to 6.2 billion yuan, representing a year-on-year increase of 114.48% to 129.27%.

Source: Daily Economic News, Zhejiang NHU, Chemical New Materials, Longzhong Information

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Xinhengcheng, IPDI has been put into production!

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