China’s north evolving its fluorochemicals business 04-24-2018

In 2018, a city in China’s northern Inner Mongolia Province continues pushing forward the local fluorochemicals projects and meanwhile introducing projects to expand the production scale, pushing the importance of this region for the global market.


At the end of March 2018, Ulanqab, a city in Inner Mongolia Autonomous Region in the north of China, announced the construction progress of the 2nd phase Yonghe fluorochemicals project. Reportedly, the project, funded by Inner Mongolia Yonghe Fluorochemicals with a total of USD286.79 million, is expected to produce a succession of fluorochemicals. According to market intelligence firm CCM, in 2018, almost USD160 million is to be input into the project. 

As part of the project, several production lines of hydrofluoric acid are going to be constructed, together with  HFC-143a, difluorochloromethane, tetrafluoroethylene, hexafluoropropylene, pentafluoroethane, heptafluoropropane, calcium chloride, and incineration products. To date, the formalities such as projecting, environmental impact assessment and land planning have been gone through, and the construction has been started since February 20, 2018. Now the infrastructures for the said 10 production lines are constructed in an orderly way, certain equipment is in place and investment of USD12.75 million is made. 

The city Ulanqab is introducing projects to expand the local production scale. In early April 2018, a 10, 000 t/a perfluorocarbon (PFC) project funded by Hong Kong Ouhua was settled. With a total investment of USD159.33 million, it is to be constructed in 3 phases. Specifically, the 1st phase with an investment of USD23.90 million is to build integrated PFE workshop, warehouse and three-waste treatment station. Now related formalities are under processing and the preparations are made for construction. In May 2018, the phase will be constructed and will be put into operation on Aug. 2019. PFC is a new fluorine-enriched material and is a key product in the fluorochemical business. It, of strong tolerance to high/ low temperature, heat and erosion, is a very important polymer composite material and is widely applied in fields of aerospace, satellite communications and bio-engineering. 

So far, 2 production lines have been put into trial production. It is expected that the project will enrich Inner Mongolia Yonghe's product portfolio, extend its industrial chain and improve its position and competitiveness in the domestic and global fluorochemical industry. Inner Mongolia 3F W Equipment installation of its 20,000 t/a chlorodifluoroethane (R142b) and 15,000 t/a R152a production lines, with a total investment of USD31.18 million, is now underway. 

After the fluorochemical projects are put into production, there will be a complete fluorochemical industry chain in Ulanqab involving the manufacture of hydrofluoric acid, hydrofluoroalkane, vinylidene fluoride (VDF), polyvinylidene fluoride (PVDF), fluororubber, etc. 

Conditions favourable to the development of Ulanqab’s fluorochemical industry

Analyst CCM demonstrates the conditions that are favourable to the development of Ulanqab's fluorochemical industry.

Currently, fluorite reserves of Ulanqab total 28.38 million tonnes. Abundant fluorite reserves will lay a solid foundation for Ulanqab's entrance into sectors of basic fluorochemicals, ozone depleting substance substitutes (ODS) substitutes, high-end fluoropolymers and fine fluorochemicals to achieve a shift from the manufacture of primary and medium products to premium end products. 

Secondly, Ulanqab will become an important fluorochemical production and processing base in northern China by developing a relevant circular economy and industrial cluster, taking the lead in fluorochemical capacity and product upgrading. Now, there are 6 fluorochemical producers in this region, capable to annually produce 224,000 tonnes of 14 types of products. 

About the article

The information for this article comes from CCM, China’s leading market intelligence provider for the fields of agriculture, chemicals, food and feed. 


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