Wanhua Chemical Group, one of the world’s leading producers of petrochemicals, has announced a partial shutdown at its Maleic Anhydride (MA) production facility in Yantai, China. The plant, located in the Yantai Industrial Park, halted its operations on December 15, 2024.

According to media reports, while the shutdown has been confirmed, details regarding the exact duration of the suspension have not yet been disclosed. The Yantai plant is one of the major manufacturing sites for Wanhua Chemical Group that has a production capacity of 20,000 metric tons per year for Maleic Anhydride. It is a key ingredient used in the production of unsaturated polyester resins, lubricants, and various other chemicals.

Wanhua Chemical Group’s Yantai Industrial Park is the company’s largest production site, covering a vast area with a diverse range of production units. The park is home to approximately 30 sets of production equipment and facilities, including a propane dehydrogenation (PDH) plant, a Propylene Oxide-Methyl Tert-Butyl Ether (PO-MTBE) plant, and various downstream units. This makes it a crucial hub for the company’s production of chemicals and petrochemical products.

Wanhua is renowned for its leadership in the global chemicals market, particularly in the production of methylene diphenyl isocyanate (MDI). The company holds a commanding share of around one-third of the global MDI market, with a total production capacity of 2.65 million tons annually.

Impact of the Partial Shutdown

The partial shutdown at the Yantai plant might cause potential supply chain disruptions and the company's ability to meet market demand for Maleic Anhydride. It is a critical component for many industries in the automotive, construction, and coatings sectors.

About Wanhua Chemical Group

Wanhua Chemical Group is a major global producer of chemicals, particularly MDI, and other petrochemical products. Headquartered in Yantai, Shandong Province, China, the company operates a vast network of production sites and has established itself as a key player in the global chemicals industry. Its extensive product portfolio includes MDI, TDI (Toluene Diisocyanate), and various specialty chemicals used across a wide range of industries.

The company has been at the forefront of developing and producing advanced chemicals that are essential for a variety of applications in construction, automotive, consumer goods, and industrial sectors. Wanhua’s commitment to innovation and sustainability has helped it maintain its competitive position in the global market.