Anhui Wanwei Updated High-tech Material Industry (600063.SH) announced that Guangxi Wanwei Biomass Technology Co., Ltd. (hereinafter referred to as Guangxi Wanwei) is a wholly-owned subsidiary of the company, serving as an important 'wing' of the company's 'One Body, Two Wings' strategy, forming a significant 'wing' towards the 'CNI Yangtze index Economic Belt, CNI Zhujiang index Economic Zone, CNI Bohai index Economic Belt' large market layout, and is also a vital 'pole' for the implementation of the full industry chain strategic layout of 'coal - carbide method', 'petroleum - ethylene method', 'biomass - alcohol method'. Guangxi Wanwei currently has an annual production capacity of 0.06 million tons of VAE emulsion, 0.05 million tons of polyvinyl alcohol (PVA), and 0.1 million tons of vinyl acetate, with the economic benefits of VAE products being significant in the past decade. However, from the current situation, the market structure of oversupply for low-end VAE emulsion products has already formed, especially with the impact of the sluggish construction market on low-viscosity VAE emulsion products resulting in severe overcapacity and price inversion.
Since the beginning of this year, the overall sales of VAE emulsion products by Guangxi Wanwei have been poor, with high product inventory and meager profits. The biggest issue is the high production volume of low-viscosity VAE emulsion products, which is difficult to resolve. Through market research, low-viscosity VAE emulsion products can be further processed into redispersible latex powder, entering the construction mortar market in southern and southwestern regions, where the overall demand in this market is showing a growth trend. Based on the above, Guangxi Wanwei plans to invest in the construction of a 0.01 million tons/year VAE redispersible latex powder technical transformation project to resolve the low-viscosity VAE emulsion production capacity, achieve greater benefits, further extend the biomass alcohol-VAC-PVA-biomass PVA material industry chain, and enhance the quality of biomass industry development. The project has been filed with the Yizhou District Industrial Information and Business Bureau of Hechi City, Guangxi Zhuang Autonomous Region. The project code is: 2410-451203-07-02-431735. The total investment for the project is 28.7732 million yuan, and the project construction funds are self-financed by Guangxi Wanwei Biomass Technology Co., Ltd.
