An exclusive interview with Wanhua Chemical, an exhibitor at the 3rd UTECH Middle East Foam and Polyurethane Expo 2024.

Wanhua Chemical believes strongly in ‘Advancing Chemistry, Transforming Lives’. The company is among the global leading suppliers of innovative chemical products and relies on continuous innovation, commercialised facilities, and efficient operations.

Wanhua Chemical is exhibiting its latest innovations in the polyurethane and foam industry at the 3rd UTECH Middle East Foam and Polyurethane Expo 2024 at Stand No. U870. Here is an exclusive interview with their spokesperson Bob Wang, General Manager – International Business Development.

1. What chemical products do you specifically manufacture for the polyurethane and foam industry?

Wanhua Chemical is a leading manufacturer of a diverse range of chemical products tailored for the polyurethane and foam industry. Our product portfolio includes isocyanates, as well as polyether polyols, which are essential for producing various types of polyurethane foams.

Aromatic isocyanates

• MDI: We produce isocyanates such as MDIs, including Pure MDI, Polymeric MDI, and Modified MDI, which are widely used in construction, automotive, and appliance manufacturing.
• TDI: Wanhua has elevated the purity of its TDI products to 99.99%, setting an industry benchmark. This high purity makes their TDI ideal for use in soft furniture and premium coatings, earning widespread acclaim from customers.

Polyether polyols
a) Monomeric Polyols

– Flexible Foam Polyols: Used in manufacturing flexible foams for comfort applications such as furniture and mattress.

– Rigid Foam Polyols: Utilised in producing rigid foams for insulation and structural applications.

-CASE Polyols: These polyols are designed for use in coatings, adhesives, sealants, and elastomers, offering tailored properties for specific industrial applications.

-Bio-Based Polyols: Developed to support sustainability, these polyols are derived from renewable resources, offering similar performance to conventional polyols.

b) Blended polyether polyols systems

These systems are pre-formulated for specific applications, ensuring optimal performance and ease of use. They are widely applied in industries such as construction (for building panels), home appliances, automotive, and furniture.

Wanhua Chemical’s commitment to innovation and sustainability ensures that our products not only meet current industry demands but also lead in reducing environmental impact through advancements such as bio-based polyols and foam recycling technologies.

2. You have an extensive network across the world. Can you tell us a little more about how these networks converge to provide your products in the Middle East and African region? Who are your top customers in this region?

Wanhua Chemical has established a robust international business network to support its global operations, including a significant presence in the Middle East and African (MEA) region. We operate ten major production bases worldwide, six R&D centers, and around 30 subsidiaries and offices, supported by over 60 storage centers. This extensive infrastructure allows Wanhua to efficiently meet the demands of over 140 countries and regions, ensuring timely and reliable product delivery.

Our sales offices in the Middle East and Africa, and local warehouses enable us to closely collaborate and communicate with local partners, ensure supply, and better serve our customers in these regions. And we have partnered with local companies to strengthen its supply chain and enhance service delivery. This kind of partnership not only supports Wanhua’s manufacturing bases in China and beyond but also enhances the efficiency and reliability of product distribution across the region.

Wanhua’s top customers in the MEA region include key players in various industries such as construction, automotive, and home furnishings. Our ability to provide tailored solutions and maintain stable supply chains has solidified its reputation as a reliable partner in the chemical industry.

3. What is your opinion on the PU chemicals market in the MEA region – what are the current trends?

The PU chemicals market in the MEA region is highly competitive. Global shipping volatility and geopolitical complexities in the region have contributed to significant demand fluctuation and supply chain chaos, introducing significant uncertainty to the polyurethane market. Additionally, the market in the MEA region is open to strong competition from all sources in Europe, the United States, and Asia.

In the long term, however, we witness market resilience in the MEA region. The population is continuously growing, and investments in production and construction are expanding, providing robust support to the regional economy. Industries such as construction, automotive, and footwear are expected to keep developing, with increasing attention to sustainable development.

Overall, there is intense competition in an uncertain environment, but in the long term, we anticipate some recovery and growth in demand. As a leading provider of innovative chemical solutions, we are committed to tailoring high-quality, sustainable PU products to meet the specific and evolving needs of the MEA region.

4. The world’s focus is quickly shifting towards sustainability. What kind of role does sustainability play in your chemical production processes and products? Has the demand for sustainable products increased in recent years?

Sustainable development is increasingly being recognised as a crucial global priority. Wanhua Chemical places significant emphasis on sustainability in both its production processes and products. The company has committed to achieving peak carbon emissions by 2030 and aims for carbon neutrality by 2048. To support these goals, Wanhua has made substantial investments in clean energy and innovative technologies.

Some of these examples are as below:

• Green electricity

We’re investing in photovoltaic, wind, nuclear power, and other new energy sources to strengthen carbon footprint management at the source. This initiative contributes to the incremental generation of clean electricity in society. When fully implemented, it is expected to reduce carbon emissions by 37 million tons per year. Ultimately, our goal is to achieve complete coverage of clean electricity in Wanhua Chemical’s industrial parks in China, thereby facilitating the company’s transition towards low-carbon practices.

• Heat collection and re-use

We are recycling and reusing production waste heat from the Yantai Industrial Park, collaborating with neighboring enterprises and the city to establish a green circulation system. The recovered waste heat is transferred to the urban heating network through a circulating water system, providing heating for the entire city of Yantai. Heating services have officially commenced operation in the winter of 2023, providing 10 million square meters of clean heat to the city of Yantai, benefiting over 100,000 households.

• Process and products innovation

Through innovative optimisation of facility processes, we have pioneered a globally unique process for the cyclic utilisation of hydrogen chloride, enabling the recovery of by-product hydrochloric acid. This innovation equates to an annual reduction of approximately 700,000 tons of carbon dioxide. Additionally, our groundbreaking technology for the cyclic use of waste brine from MDI production ensures that the waste brine fully meets the requirements for ion membrane electrolysis water. This results in an annual reduction of over 140,000 tons of carbon dioxide emissions.

The demand for sustainable products has indeed increased in recent years. Wanhua Chemical has responded with a range of eco-friendly products, such as bio-based and recycled materials. For example, bio-based products, which can contain over 90% bio-based content, help reduce production energy consumption and carbon emissions by 30-50%. Our initiatives in polyurethane recycling and the development of low-carbon materials also support the circular economy.

By continuously innovating and implementing sustainable practices, Wanhua Chemical is well- positioned to meet the growing demand for environmentally friendly products and contribute significantly to global sustainability efforts.

5. Tell us a little more about your research and development when it comes to providing the right chemicals for the PU and foam industry. What are the drivers of this industry currently?

Wanhua Chemical places a strong emphasis on research and development to drive innovation in the polyurethane (PU) and foam industry. In the production of refrigerators, the formation of the polyurethane insulation layer is a critical step that impacts both the product’s thermal insulation performance and the manufacturing efficiency for appliance companies.

Through a series of technical breakthroughs, Wanhua Chemical has developed an ultra-fast demoulding solution that covers all production systems available in the market. This includes the world’s first ultra-microcellular fast demolding system, reaching 60 seconds as the demoulding time – a world record. This significant improvement greatly enhances the production efficiency of appliance manufacturers, reduces energy consumption, and lowers the manufacturing cost per refrigerator by 8%-10%, leading the transformation and upgrading of the appliance industry. Additionally, this technology provides the industry with more energy-efficient refrigerator products, reducing the energy consumption per unit by 2%, contributing to environmental protection and carbon reduction.

Another example is WANNATE® 9131FC, which is designed for use in moulded wood pallets, offering enhanced mechanical strength, water resistance, and reduced energy consumption. By utilising tailor-made MDI as the binder, MDI-moulded wood pallets allow for the production of pallets from recyclpaneled materials, significantly lowering the carbon footprint and supporting circular economy initiatives.

The current drivers in the PU and foam industry are heavily influenced by the demand for sustainable and environmentally friendly products. Industries are increasingly focusing on reducing their carbon footprint, enhancing energy efficiency, and adopting green technologies. Wanhua Chemical’s innovation strategy aligns with these trends by developing bio-based and recycled materials that meet stringent performance criteria while promoting sustainability.

Through our continuous R&D efforts, Wanhua Chemical aims to lead the industry in providing high-quality, sustainable PU and foam solutions that cater to the needs of a wide range of applications, from automotive to construction and beyond.

6. Why have you decided to exhibit at UTECH MEFPU 2024? What are you looking forward to from this event?

At Wanhua Chemical, our decision to exhibit at UTECH MEFPU 2024 aligns with our strategic goal of expanding our presence and influence in the Middle East and African (MEA) region. UTECH MEFPU provides a unique platform that brings together key players from the foam and polyurethane industry, offering us the opportunity to showcase our latest innovations, connect with industry leaders, and gain insights into regional market trends.

• Showcasing our strengths

Exhibiting at UTECH MEFPU 2024 allows us to demonstrate our cutting-edge products and technologies to a diverse audience. This event is known for attracting manufacturers, suppliers, and buyers who are keen to discover new advancements in the foam and polyurethane sectors. By presenting our innovative solutions, we aim to highlight our commitment to quality, sustainability, and customer-centric product development.

• Engaging with customers

Being present at such a significant event enables us to engage closely with our existing customers and forge new relationships. Our extensive global network of production bases, R&D centers, and subsidiaries allows us to meet the specific needs of clients in the MEA region. Direct interactions with attendees will help us better understand their requirements and provide tailored solutions that drive mutual growth.

• Understanding industry trends

UTECH MEFPU 2024 also offers a platform for learning and knowledge exchange. The event will feature discussions on the latest industry trends, innovations, and challenges. Participating in these discussions will help us stay at the forefront of industry developments and adapt our strategies to meet the evolving demands of the market.

Overall, we are excited about the opportunities that UTECH MEFPU 2024 presents. We look forward to showcasing our capabilities, enhancing our customer relationships, and gaining valuable insights that will help us continue to lead in the foam and polyurethane industry.