Chinese coal energy major to build 50ktpa EPDM plant

Tokyo – Japanese elastomer engineering and plant design consulting firm ETIC has signed an EPDM manufacturing technology licensing agreement with a Chinese energy company to build a 50 kilotonne-per-annum (ktpa) plant in eastern China.

The company inked the deal with state-owned coal energy company Guoneng Yulin Chemical for the construction of the plant in Yulin City, Shaanxi province, said ETIC 6 Aug.

Construction work is scheduled to begin with operations targeted for the end of 2028.

ETIC’s EPDM technology uses a vanadium catalyst, which it said is “an ideal material for thermoplastic elastomers and foamed products.”

According to ETIC, EPDM is increasingly replacing solid products in automotive door seals, trunk seals and other applications to reduce weight.

Demand is also surging with the spread of EVs as car makers seek to reduce vehicle weight.

ETIC said the deal was its third licensing agreement, following an agreement with Shaanxi Yuneng Chemical New Materials Co. to build another 50ktpa EPDM plant, currently under construction and scheduled to begin operations at the end of 2027.

The engineering firm is also working with China’s Shandong Dawn Polymer Materials, which is currently building a 25ktpa EPDM unit scheduled to begin operations at the end of 2027.

Commenting on the project economics, ETIC said naphtha prices are currently soaring due to the blockade of the Strait of Hormuz.

However, it noted that Guoneng Yulin Chemical “is highly competitive” as it produces ethylene and propylene using coal as a raw material.

Looking ahead, ETIC said it planned to further improve its existing technologies, increase the number of grade lines and actively expand its EPDM licensing business, with a focus on marketing in India and Africa.