Wanhua Chemical Strengthens Global Dominance with 5.94 Million Tons of Isocyanate Capacity

April 15, 2025 - Wanhua Chemical released its 2024 Annual Report and Q1 2025 Financial Results, revealing its growing dominance in the global polyurethane market, especially in isocyanate production. In Q1 2025, the company recorded revenue of RMB 43.07 billion, down 6.7% year-over-year, with polyurethane-related products contributing RMB 18.43 billion. For the full year 2024, Wanhua achieved total revenue of RMB 182.07 billion, up 3.83%, while net profit attributable to shareholders declined 22.49% to RMB 13.03 billion.

As of the end of 2024, the company's total assets stood at RMB 293.33 billion, a 15.92% increase year-over-year. Wanhua's total isocyanate production capacity reached 4.91 million tons, reaffirming its position as the world's largest isocyanate supplier.

The modest revenue growth was primarily driven by capacity expansions and technological upgrades across several production units. However, the decline in net profit stemmed from:

Fluctuations in raw material costs and product prices,

Increased R&D investment (2024 R&D spending not yet disclosed),

Asset impairment or scrapping of certain investment projects.

Wanhua's polyurethane business encompasses both isocyanates (MDI/TDI) and polyether polyols.

MDI:

In April 2024, the capacity of the MDI unit in the Fujian complex doubled from 400,000 to 800,000 tons/year. In December, the Ningbo plant's MDI capacity was expanded from 1.2 million to 1.5 million tons/year. By the end of 2024, global MDI capacity reached 3.8 million tons/year. A further 700,000-ton/year MDI expansion project in Fujian is scheduled for Q2 2026, which will bring total MDI capacity to 4.5 million tons/year.

TDI:

Current TDI capacity stands at 1.11 million tons/year. A 330,000-ton/year expansion in Fujian Phase II is expected to come online by May 2025, increasing total capacity to 1.44 million tons/year.

Once all projects are completed, Wanhua's total isocyanate capacity will reach 5.94 million tons/year, further cementing its position as the world's largest MDI/TDI producer.

In April 2025, Wanhua unveiled plans to double HMDI capacity at its Yantai site from 20,000 to 40,000 tons/year, while also launching a 30,000-ton/year HDI unit. Additionally, Wanhua completed the acquisition of French company Vencorex on April 10, securing 70,000 tons/year of HDI monomer capacity and a French manufacturing site.

HMDI, a high-end aliphatic isocyanate, has long been dominated by Covestro and BASF. Through independent expansion and overseas acquisitions, Wanhua emerges as a major global supplier, disrupting the foreign monopoly and enhancing its overall isocyanate portfolio.

HMDI is widely used in high-growth sectors such as new energy vehicles and wind power coatings. Localized production will reduce dependence on imports, cut downstream costs, and accelerate import substitution.

The complexity of HMDI production highlights Wanhua's R&D capabilities. This positions the company to extend into specialty isocyanates, narrowing the technological gap with global giants.

Wanhua's cost advantages could pressure competitors like Covestro to rethink pricing and strategy in China. Increased domestic supply of HMDI is also expected to spur innovation in downstream applications, such as biomedical materials and other high-end polyurethane products.

Wanhua's latest developments illustrate its strategic ambition to transition from volume leadership to technological and market leadership in the global polyurethane space.