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China Set to Lead Global PET Capacity Growth until 2028
China Set to Lead Global PET Capacity Growth until 2028

China Set to Lead Global PET Capacity Growth until 2028

  • 07-Mar-2024 11:44 AM
  • Journalist: Gabreilla Figueroa

In a trajectory set to reshape the global polyethylene terephthalate (PET) landscape, China emerges as the frontrunner, poised to dominate PET capacity additions by contributing an impressive 40% to the total growth expected from new plant constructions and expansion projects by the year 2028.

A closer inspection of the Chinese polyethylene terephthalate PET market reveals two pivotal projects set to significantly contribute to the anticipated surge in capacity. The first, an announced project, is the Zhejiang Petrochemical Daishan Polyethylene Terephthalate Plant 2, boasting a substantial capacity of 2 million tpy. Operated by Zhejiang Petrochemical, which holds a 100% stake, this project is strategically located in Zhejiang, China, with production slated to commence in 2026.

In tandem, the Hainan Yisheng Petrochemical Yangpu Polyethylene Terephthalate Plant is poised to add an extra 0.50 million tpy in capacity. Operated by Hainan Yisheng Petrochemical Co Ltd, with complete equity ownership, this plant is expected to commence operations in 2025 in Hainan, China.

The Zhejiang Petrochemical Daishan Polyethylene Terephthalate Plant 2 stands out as a flagship project in China's pursuit of PET dominance. With a substantial capacity of 2 million tpy, this announced project is strategically positioned in Zhejiang, a key industrial hub. The choice of Zhejiang, known for its economic vibrancy and robust infrastructure, underscores the strategic planning behind China's Polyethylene Terephthalate (PET) capacity expansion. Zhejiang Petrochemical Co. Ltd's complete ownership and operation of the plant further emphasize the country's commitment to controlling its PET supply chain.

The Hainan Yisheng Petrochemical Yangpu Polyethylene Terephthalate Plant represents another significant contributor to China's PET capacity growth. With a capacity addition of 0.50 million tpy, this project is strategically located in Hainan, an area poised for economic development. The plant's expected commencement of production in the year 2025 aligns with China's proactive approach to meeting the anticipated rise in PET demand.

As China solidifies its position as the leading contributor to global Polyethylene Terephthalate (PET) capacity growth, the implications reverberate across the international PET market. Several factors come into play, shaping the dynamics of the industry and influencing stakeholders across the world.

China's dominance in PET capacity additions is likely to reshape the global PET supply chain. With a significant portion of the world's PET production concentrated in China, there may be a shift in supply dynamics, impacting logistics, transportation, and distribution channels. Market players will need to adapt to these changes in order to optimize their supply chain strategies.

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