213 Billion RMB Investment Lands in Shanghai! A Three-Year Construction Period to Propel the Rise of New Plastic Materials

Introduction

On January 14, 2025, Sinopec Shanghai Petrochemical announced a planned investment of approximately 21.307 billion RMB to restructure its refining facilities. The plan includes shutting down 18 existing units, including a 700,000-ton/year ethylene plant, and constructing new units, such as a 1.2 million-ton/year ethylene plant and downstream advanced material production facilities. This initiative aims to align with national energy-saving and carbon-reduction goals, safety, and environmental protection requirements. Leveraging Shanghai's economic development and market demand, the project builds on the company's existing foundation, optimizing its refining-chemical integration to develop high-end chemical materials and promote comprehensive technical upgrades and quality enhancements.

Existing Advanced Chemical Materials

High-End Polyolefins

- Medical-grade polypropylene for syringes.
- Polypropylene foam materials.
- High-density film resin (MH652).
- High-transparency polypropylene resin (M1600EHT).
- High-pressure polyethylene (Q281D, Q800) for pharmaceutical and food packaging.
- Low-density polyethylene for aseptic filling applications.
- Polyethylene for large-diameter thick-walled pipes used in nuclear power.
- Specialty cast films (F200R) for battery pouches.

Carbon Fiber

The company has accumulated 251 carbon fiber-related patents and 46 composite material patents. It is pioneering an integrated solution for carbon fiber, intermediates, and composites. Shanghai Petrochemical has mastered large-tow carbon fiber production technology, becoming the first in China and the fourth globally to achieve this feat. In April 2024, the company successfully manufactured a 131-meter onshore wind turbine blade using its 48K large-tow carbon fiber material.

Ongoing High-End Material Projects

1. 250,000-ton/year Thermoplastic Elastomer Project: This project will enhance the company's competitiveness in the elastomer materials sector.
2. 24,000-ton/year Precursor and 12,000-ton/year 48K Large-Tow Carbon Fiber Project: In October 2022, the project produced high-performance SCF55H carbon fiber (T800 grade), marking a major breakthrough in large-tow carbon fiber technology.

Opportunities in Other Advanced Chemical Materials

- Ultra-High-Purity Photoresist: Critical for semiconductor manufacturing, ultra-high-purity photoresist plays a vital role in advanced chip production. Shanghai Petrochemical may enter this field through collaboration or independent research.
- High-Purity Phosphine: A key component in electronic specialty gases, widely used in semiconductor manufacturing. By adopting technologies from leaders like Nata Optoelectronics, Shanghai Petrochemical could enhance its capabilities in this area.
- High-Precision Polishing Pads: Used in chemical mechanical polishing (CMP) for semiconductors, these materials are crucial for improving chip manufacturing precision. Growing market demand presents significant opportunities.
- High-Performance Fluororesins and Fluororubbers: With superior chemical resistance and thermal stability, these materials are widely used in aerospace, electronics, and chemical industries. Shanghai Petrochemical can leverage its expertise to develop these products.
- High-Performance Metallocene Catalysts: Offering high activity and selectivity, these catalysts enhance polyolefin performance. Collaborating with research institutions could advance development in this field.
- High-Carbon α-Olefins: Essential for producing high-performance polyolefins, demand for high-carbon α-olefins is increasing. Shanghai Petrochemical's expertise in ethylene production provides a competitive edge in this area.
- Medical Membrane Materials for Hemodialysis: These materials have significant applications in healthcare, with steady market demand. Shanghai Petrochemical can utilize its material science expertise to develop high-performance medical membranes.
- Polyimides: Known for exceptional heat resistance and mechanical properties, polyimides are widely used in aerospace, microelectronics, and other fields. Shanghai Petrochemical's experience in chemical material R&D positions it well for this market.

(Content and images sourced from the internet.)