$638 Million! WanHua Chemical and Kuwait Petroleum Company Reach Joint Venture Agreement!

On April 25, WanHua Chemical Group Co., Ltd. and Kuwait Petrochemical Industries Company (PIC) officially signed a joint venture agreement at the headquarters of WanHua Chemical Group in Yantai City, Shandong Province. PIC has invested $638 million to acquire a 25% stake in WanHua Chemical (Yantai) Petrochemical Co., Ltd., a wholly-owned subsidiary of WanHua Chemical. This milestone event marks a new stage in the strategic partnership between both parties and reflects their commitment to advancing the global petrochemical industry.

Background and Significance of the Cooperation

The cooperation between WanHua Chemical and Kuwait Petroleum Company began in 2013, when WanHua's business team first visited Kuwait Petroleum Company and signed a long-term LPG supply agreement, becoming the first Chinese company to directly participate in the allocation of Middle Eastern LPG resources. The signing of this joint venture agreement not only strengthens the long-term cooperation between both parties but also enhances the internationalization of the Yellow and Bohai Sea coastal region, improves the business environment for foreign investors in China, and attracts more high-quality foreign investments.

WanHua Chemical’s Global Expansion

WanHua Chemical has steadily advanced its internationalization, with its overseas business accounting for 42.61% of total revenue in 2024, and the export of polycarbonate being the largest in China.

In 2006, WanHua Chemical established a sales company overseas, officially beginning its internationalization journey. In 2011, WanHua Chemical acquired Hungarian chemical company BorsodChem (BC) for 1.23 billion euros, marking the largest Chinese acquisition in Central and Eastern Europe at the time. BC is one of the largest chemical companies in the region, primarily producing and selling isocyanates (MDI/TDI) and plastic raw materials (PVC). In February 2025, WanHua Chemical received the "Investor Lifetime Achievement Award" at the annual investor celebration hosted by the Hungarian Investment Promotion Agency (HIPA). Despite the economic downturn in Europe, BC has shown remarkable resilience, and its market share of MDI and TDI products in Europe has continued to grow. Furthermore, BC is actively advancing its digital transformation, with 47 projects planned, 40 of which have been launched, aiming to improve production efficiency and safety.

WanHua Chemical’s Layout in Europe and the United States

In Europe, WanHua Chemical established its second R&D center in Barcelona in April 2024, focusing on business cooperation in the fine chemicals and materials industries, covering fields such as coatings, adhesives, and engineering plastics. The center also collaborates with local research institutions and enterprises to conduct joint R&D in cutting-edge fields such as renewable energy, carbon capture and recycling technology, biosynthesis, and bio-based materials.

In the United States, WanHua Chemical established a sales company in Philadelphia in 2006 and set up its regional headquarters in the U.S. in 2014. Despite some challenges with its MDI project in the U.S., WanHua Chemical still plans to have a production capacity of 400,000 tons of MDI products in the U.S.

Conclusion

The cooperation between WanHua Chemical and Kuwait Petrochemical Industries Company has not only deepened their strategic partnership but also injected new momentum into the continued progress of the global petrochemical industry. Through this joint venture, WanHua Chemical has further solidified its position in the international market, demonstrating its firm commitment to leading innovation and sustainable development in the global petrochemical industry.