CCM: Jinhua Yonghe to produce high performance fluorine-enriched materials 05-11-2016

On 1 Feb., 2016, Jinhua Yonghe Fluorochemical Co., Ltd. (Jinhua Yonghe, in Zhejiang Province) announced that its environmental impact assessment (EIA) report of the high performance fluorine-enriched materials project had been passed by the Zhejiang Environmental Engineering Technology Assessment Centre. Now it is forwarding the project.

Accordingly, the project, with a total investment of USD15.60 million (RMB102.23 million), comprises 3 phases:

- Phase I (to be finished in June 2016): to construct production lines of fluorinated ethylene propylene (FEP, 1,300 t/a based on single-screw extrusion process and 500 t/a based on twin-screw extrusion process) and polytetrafluoro ethylene (PTFE) emulsion (600 t/a) in the Polymerisation Workshop 1

- Phase II (to be finished in June 2017): to newly construct the Polymerisation Workshop 2, involving FEP (2,200 t/a, based on twin-screw extrusion process) and to relocate the PTFE emulsion production line (in Phase I) in it; the production capacity of tetrafluoroethylene (TFE) will be expanded to 7,000 t/a to meet downstream demand

- Phase III (to be finished in June 2018): to newly construct the Polymerisation Workshop 3, including production lines of perfluoroalkoxy alkane (PFA, 300 t/a) and ethylene-tetrafluoroethylene (ETFE, 100 t/a).

“This project is a necessary step for us to develop the fluorochemical business in strength and size,” stated Jinhua Yonghe, “It will increase the full-year sales by USD64.41 million (RMB422.15 million) – profit by USD25.77 million (RMB168.88 million).”


CCM believes that this project will effectively enrich Jinhua Yonghe’s product categories, beneficial to the improvement of competitiveness and anti-risk capability.

Jinhua Yonghe, established in 2004, has 4 key products, including difluorochloromethane (HCFC-22, 12,000 t/a), difluoromethane (HFC-32, 5,000 t/a), pentafluoroethane (HFC-125, 3,000 t/a) and FEP (200 t/a). Obviously, it is focusing on the fluorine-enriched refrigerant business.

However, it has been drawn back by the overall sluggish low-marketed fluorochemical market, which is trapped in overcapacity and price downturns. For instance, the demand for HFC-32 (total production capacity: 260,000 t/a) was only about 90,000 tonnes in 2015, and the corresponding price was down by 17.23% the full year.

Now the application of fluorochemicals is gradually transferring from conventional fields to electronics, energy, environmental protection, information technology, bio-pharmaceuticals and suchlike, which demands high performance and refined fluorochemicals. Under this, Jinhua Yonghe’s established product structure is somehow backward, unfavourable for long-run development.

It is notable that Jinhua Yonghe is applying TFE as an intermediate for its main business, which is also applicable to producing various fluoropolymers. This is a critical point for its launch of new projects.

In addition, Jinhua Yonghe has decided to dismantle all its HFC-32 production lines, and to use the old workshops and factories to develop such new projects. This is a full response to the Jinhua government’s requests: to intensively make use of land, to handle low-efficiency vacant land, to resolutely eliminate backward capacity, to propel the rational transfer of industrial land, to vigorously improve the intensive development of industrial parks and zones, and to actively support the enterprises in technological reconstruction and innovation.

This article comes from China Fluoride Materials Monthly Report 1602, CCM

About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.


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Tag: fluorine

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