What is driving Wanhua Chemical's shift from TMP to neopentyl glycol production?

What is driving Wanhua Chemical's shift from TMP to neopentyl glycol production?
Wanhua Chemical has announced a major strategic pivot, converting its 50,000-ton/year TMP unit in Yantai to produce neopentyl glycol (NPG) instead, while expanding capacity to 100,000 tons/year. This follows an earlier expansion of its NPG unit from 60,000 to 90,000 tons/year, bringing total NPG capacity to 160,000 tons/year within three months. The rationale is clear: TMP prices collapsed from peaks above RMB 25,000/ton in 2022 to around RMB 8,600/ton, while production costs stood at RMB 11,000/ton, implying losses of roughly RMB 2,000/ton for sodium-process producers. In contrast, NPG maintains healthier margins of about RMB 1,200/ton, making it a more profitable allocation of the same feedstock streams.