Jiangsu Sopo Plans to Build VAM and EVA Plant in Zhenjiang

Jiangsu Sopo Chemical in China is strategically planning to establish a comprehensive vinyl acetate monomer (VAM) and ethylene vinyl acetate (EVA) monomer project in Zhenjiang, Jiangsu province. The ambitious project will unfold in two stages, beginning with the construction of a VAM production plant with a substantial capacity of 330 thousand tons per year.

Moving forward, the second stage will see the establishment of an EVA production plant, designed to produce 300 thousand tons annually. The projected investment for this significant venture is estimated at 512 million USD for the VAM plant and 624 million USD for the EVA plant.

Jiangsu Sopo Chemical anticipates completing the construction of the VAM plant within a three-year timeframe, while the EVA plant is expected to be operational within five years following approval. This strategic initiative aligns with the company's vision for expansion and enhanced production capabilities.

In related developments, LyondellBasell Industries (LBI), a global leader in polyolefin production, recently resolved a force majeure situation related to the supply of acetic acid and vinyl acetate monomer (VAM) at its facility in La Porte, Texas, USA. The force majeure was lifted following a safety issue at the acetic acid plant on November 19, which subsequently delayed the plant's startup.

In August 2023, there was a substantial 12.72% increase in EVA imports, reaching 4.66 thousand tons compared to 4.13 thousand tons in the corresponding month of the previous year. The cumulative imports of this ethylene copolymer type to the Russian Federation during January-August 2023 demonstrated a commendable rise of 13.57%, totaling 31.06 thousand tons, up from 27.35 thousand tons in the same period in 2022.

This data signifies the continued growth and demand for EVA in the Russian market, pointing towards a positive trend in the utilization of this ethylene copolymer. The expansion plans of Jiangsu Sopo Chemical in China also underscore the strategic importance of VAM and EVA production, with the potential to contribute significantly to the industry's supply chain.

Jiangsu Sopo Chemical's visionary project to construct a VAM and EVA monomer production facility in Zhenjiang reflects the company's commitment to expansion and meeting the growing demands of the market. The multi-billion yuan investment emphasizes the scale and significance of this initiative, aligning with the company's long-term strategic goals. The broader market trends, including the resolution of force majeure by LyondellBasell Industries and the notable increase in EVA imports to Russia, further highlight the dynamic nature of the chemical industry and the continuous evolution of supply and demand dynamics.