On August 28, Wanhua Chemicals (600309.SH) announced that Cornell Chemicals intends to transfer 51% of its holdings in Fujian Cornell Polyurethane Co., Ltd. (hereinafter referred to as Cornell Fujian) to the company at the price of RMB 0. Last year, the MDI project with an annual output of 400,000 tons in Cornell, Fujian Province, was approved by the Fujian Development and Reform Commission. Wanhua Chemical plans to use the acquisition to enhance the company's production capacity, optimize the MDI industry layout, and enhance the competitiveness of the industry.

According to the announcement, the project site is located in the south side of Jiangyin Industrial Concentration Zone, Jiangyin Peninsula, Fuqing City, Fujian Province, Southeast China Electrochemical Co., Ltd.
The project is divided into two phases, the first phase is 400,000 tons/year MDI plant, and supporting construction of 55,000 tons/year formaldehyde, 100,000 tons/year ODC hydrochloric acid electrolysis plant (100% Cl2). In the second phase, 480,000 tons/year nitrobenzene, 360,000 tons/year aniline and 270,000 tons/year nitric acid plants will be built. The total investment reported for approval is 66.08 million yuan, of which the first phase investment is 56.06.58 million yuan.
The project has signed land investment contracts and obtained construction permits. On October 19, 2018, the 400,000 tons/year MDI project was approved. On December 14, 2018, the environmental impact report of the project was approved. On December 25, 2018, the project safety assessment review was approved. On January 31, 2019, the project construction of monitoring chemicals production facilities was approved. A reply is required. Up to now, about 300 million yuan has been invested in the preliminary works, and about 180 million yuan has been paid in actual funds.