Wanhua Chemical plans to build a propane dehydrogenation (PDH) plant in Fujian Province, southern China, adding to the PDH plant it operates at Yantai, eastern China.

The new plant will be built within the Fujian Jiangyin economic zone, near the city of Fuqing, which is also home to a PDH unit operated by Fujian Meide with capacity for 660,000 metric tons/year of propylene.

According to sources, the plant is expected to be completed in 2023. The company's board has also approved plans to build associated downstream propylene derivative production chains in the Fujian Jiangyin zone.

Wanhua's PDH unit at Yantai has 750,000 metric tons/year of propylene capacity. It also operates a steam cracker with capacity for 1 million metric tons/year (MMt/y) of ethylene and 520,000 metric tons/year of propylene at Yantai that came online in November last year.

China's propane imports received a boost in the first two months of this year on new petrochemical additions. Its propane imports hit a historic high at 1.62 million metric tons (MMt) in January followed by the second-highest-ever volumes of 1.57 MMt in February, based on customs data.