Recently, Wanhua Chemical announced the renovation project for its 60,000-ton-per-year biodegradable polyester production line. The total investment for this project is 56.34 million yuan. It involves upgrading the existing 60,000-ton-per-year biodegradable polyester production facility without acquiring additional land. By adding front-end and back-end equipment, the original 60,000-ton PBAT production line will be capable of producing either 60,000 tons of PBAT or 60,000 tons of PETG. After the renovation, the initial annual production plan will allocate 40,000 tons per year of PBAT (with an annual operating time of 5,280 hours) and 20,000 tons per year of PETG (with an annual operating time of 2,720 hours).

PriceSeek Analysis on 1,4-Butanediol (BDO): Bull-Bear Score: 1
Wanhua Chemical’s renovation project increases PBAT production capacity to 40,000 tons per year. The production of PBAT requires a significant amount of 1,4-butanediol (BDO) as a raw material, and it is estimated that the new demand will be approximately 16,000 to 20,000 tons. This is expected to tighten supply and demand in the spot market. As an industry leader, Wanhua’s capacity expansion may boost market confidence and support price increases. However, since the project does not involve additional land acquisition and the scale is moderate, the demand growth is steady but not explosive. Therefore, it is rated as a moderate positive.