Longhua New Materials Expands Polyether Polyol Capacity to 1.29 Million Tons

Longhua New Materials has completed construction and successfully commenced production at its 330,000-ton-per-year polyether polyol expansion project, representing an investment of 150 million yuan and lifting the company’s total polyether capacity to 1.29 million tons annually, reinforcing its scale advantage in China’s domestic market.

The new capacity focuses on high-activity soft foam polyether polyols and CASE-grade polyether polyols, widely used in automotive interiors, footwear and apparel thermal materials, adhesives, and foam adhesives. Benefiting from the rapid growth of the global new energy vehicle sector, rising domestic consumption, and automotive replacement subsidy policies, Longhua has established stable partnerships with leading automakers and component suppliers, with its products applied by major OEMs including Mercedes-Benz, BMW, SAIC, BYD, Geely, GAC, Tesla, Li Auto and Xpeng.

The expansion aligns with a broader structural adjustment within the polyether polyol industry, where market concentration has been increasing and raw material cost pressures are easing due to falling prices of propylene oxide and ethylene oxide. As demand grows for high-value and specialised polyethers—especially in emerging fields such as new energy vehicles and photovoltaics, where annual demand is rising by over 12%—industry leaders are accelerating the development of premium products including low-unsaturation, electronic-grade and medical-grade polyethers.

Longhua points to its strong R&D capability, proprietary POP technologies (such as high solid content, low viscosity, ultra-low VOC and high whiteness), and in-house equipment development as key competitive strengths. The company also maintains diversified raw material sourcing to reduce supply risk, helping stabilise costs and mitigate raw material-driven market volatility.

Source: STCN