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Securities Times reporter Ye Lingzhen

Chlor-Alkali Chemical (600618) announced on the evening of August 4 that it plans to issue convertible bonds to raise no more than 4 billion yuan for the integrated project of hydrogen peroxide-based propylene oxide (HPPO) and polyether polyols.

The announcement shows that the total investment in this fundraising project is 5.807 billion yuan, and it is planned to use 4 billion yuan of the raised funds. The shortfall in raised funds will be solved by the company's own fundraising. The project will be implemented by the wholly-owned subsidiary Guangxi Huayi Chlor-Alkali Chemical Co., Ltd. (hereinafter referred to as "Guangxi Chlor-Alkali"), and the implementation site will be the Petrochemical Industrial Park of Qinzhou Port Economic and Technological Development Zone in Guangxi. It will build 300,000 tons/year of hydrogen peroxide (100% off), 300,000 tons/year of propylene oxide (HPPO), 200,000 tons/year of polyether polyols and 50,000 tons/year of polymer polyol process units.

As early as 2023, Chlor-Alkali Chemical had announced the investment plan for the aforementioned project. At that time, the company held a 60% stake in Guangxi Chlor-Alkali, and the remaining 40% was held by the controlling shareholder Shanghai Huayi. According to the plan, Chlor-Alkali Chemical and Shanghai Huayi will increase the total capital of Guangxi Chlor-Alkali by 1.742 billion yuan in cash according to the equity ratio (60:40), which will be used for the construction of hydrogen peroxide method propylene oxide (HPPO) and polyether polyol integrated projects. In order to increase the profits of listed companies, in May this year, Chlor-Alkali Chemical announced that it would acquire the remaining 40% stake in Guangxi Chlor-Alkali from Shanghai Huayi in cash, and has now achieved full control of the latter.

As of now, the integrated project of hydrogen peroxide-based propylene oxide (HPPO) and polyether polyols is in the construction stage, and the main equipment has not yet started construction. It is expected to complete the construction in March 2026 and start trial production in the second half of 2026.

Chlor-Alkali Chemical said that the investment in this project will help the company to make a comprehensive layout in the upstream and downstream of the polyether industry chain, further enrich the company's product structure, and accelerate the implementation of future development plans.