Wanhua Chemical's IPDA Capacity Expansion: A Strategic Move in the Billion-Dollar Market

On June 23, Wanhua Chemical released an environmental impact assessment report for its IPDA (Isophorone Diamine) capacity expansion project, marking a significant upgrade in its specialty isocyanate value chain. The project, slated for completion in 2025–2026, will double the capacity of its existing IPN (Isophorone Nitrile) plant from 55,000 t/a to 100,000 t/a, while simultaneously expanding IPDA production from 50,000 t/a to 100,000 t/a.

IPDA, synthesized from isophorone, serves as a key modifier for polyurethane resins and a curing agent for epoxy resins. Its ability to cure epoxy at room temperature makes it ideal for coatings, paints, cast resins, and solvent-free systems. Additionally, IPDA acts as a chain extender for polyurethane isocyanates and is a critical feedstock for isophorone diisocyanate (IPDI).

This expansion underscores Wanhua's strategic push into high-value specialty isocyanates, integrating its IP-IPN-IPDA-IPDI value chain. The move complements its recent acquisition of France's Vencorex (adding 20,000 t/a IPDI capacity) and aligns with its ongoing HDI and HMDI capacity expansions to form a diversified product portfolio.

- July 2024: Wanhua announced a 3→50,000 t/a IPDI expansion at its Yantai base.

- April 2025: The Yantai HMDI project (2→40,000 t/a, plus 30,000 t/a HDI) was unveiled, followed by the Vencorex acquisition, securing 70,000 t/a HDI and 20,000 t/a IPDI assets.

The global IPDA market is highly concentrated, with major players including Wanhua, Evonik, BASF, Lanxess, and Vencorex (now under Wanhua). Total global capacity stands at ~180,000 t/a, with demand growing at 6–8% annually, driven by wind energy, EVs, and electronics encapsulation.

Post-expansion, Wanhua will dominate >70% of global IPDA supply alongside Evonik and BASF, becoming the world's largest IPDA producer. This positions Wanhua as one of the few players with full IPDI value chain integration, strengthening its foothold in high-performance materials.

As a critical epoxy curing agent, IPDA supports wind turbine blades, EV batteries, and advanced electronics-sectors poised for exponential growth. By 2026, Chinese firms (led by Wanhua) could control 40%+ of the global market, accelerating China's rise in high-end specialty chemicals.

This expansion not only reshapes the global IPDA supply landscape but also reinforces Wanhua's leadership in sustainable, high-value chemical solutions.