Photovoltaic Materials Push EVA Resin toward High-end Applications   

By Wang Shengkang, EKATO (Shanghai) Trading Co Ltd

Domestic production is far from meeting the domestic demand

EVA (ethylene-vinyl acetate copolymer) is the copolymer of ethylene and vinyl acetate (VA). Compared with PE (polyethylene), EVA features a low crystallinity and improved flexibility, high impact resistance, good filler compatibility and heat sealing performance.
   At present, EVA is in serious shortage in China. Major EVA producers in China include: Sinopec Beijing Dongfang Petrochemical Company Organic Chemical Plant, BASF - YPC Co Ltd, Beijing Huamei Polymer Co Ltd (a joint venture of Sinopec and DuPont), Sinopec Shanghai Petrochemical Co Ltd and PetroChina Daqing Petrochemical Company (see Table 1). As of the end of 2010, China's total production capacity of EVA was 307 000 t/a, and its import of EVA was about 479 000 tons. The dependence on imports  reached 74%. Because there are no new or expanded EVA projects in China in 2011, the country's EVA capacity in 2011 is the same with 2010.
                                                            
Table 1 Major EVA manufacturers in China in 2011   (thousand t/a)
Manufacturer    Capacity        Remarks
BASF - YPC Co Ltd.    200    
Beijing Huamei Polymer Co Ltd.    60    
Sinopec Beijing Dongfang Petrochemical Company Organic Chemical Plant    40    Italian technology
Sinopec Shanghai Petrochemical Co Ltd    6    Switch production from a LDPE plant
PetroChina Daqing Petrochemical Company    1    Switch production from a LDPE plant
Total    307
Note: EVA resin generally refers to ethylene-vinyl acetate copolymer which has a VA content of 5% - 40%. Without special claims, EVA in the article all refers to EVA resin, excluding EVA elastomers or latex.

   The production of EVA grows relatively slowly in China. It is mainly produced by LDPE plants through Switch production. Before 2005, only Beijing Organic Chemical Plant (the precursor of Beijing Dongfang Petrochemical Company Organic Chemical Plant) and a few other small manufacturers produced EVA in China, and the dependence on imports reached more than 90% (see Table 2).
                                                         
Table 2 Supply and consumption of EVA in China       (thousand tons)
Year    Output    Import volume    Export volume    Apparent consumption    Dependence on imports*
2002    44    295    0    339    87%
2003    44    355    0    395    90%
2004    44    410    10    444    92%
2005    49    395    10    434    91%
2006    155    370    15    510    72%
2007    200    426    26    600    71%
2008    156    359    30    485    74%
2009    141    504    30    615    82%
2010    208    479    30    647    74%
Note: Dependence on imports = import volume / apparent consumption

   BASF-YPC's 200 000 t/a EVA unit was put into operation in 2006. This unit uses the Lyondell-Basell high-pressure tube technology and can produce LDPE homopolymer and EVA products with a VA content of 30%. Beijing Huamei Polymer Co Ltd. is a joint venture of Sinopec and DuPont China and specializes in the production of EVA. The company transformed a LDPE production line of Sinopec Yanshan Petrochemical Company into an EVA production line, having an EVA production capacity of 60 000 t/a. The project was put into production in 2010. With the completion of these projects, China's dependence on EVA imports has declined, but the country still needs to import large quantities of EVA each year to meet the fast-growing domestic demand.
   Furthermore, Formosa Plastics has decided to construct Formosa Plastics Industrial Park in Ningbo, Zhejiang province, with a total investment of US$2.3 billion. The company plans to build 15 projects, including a 200 000 t/a EVA project, in the park. The EVA project is expected to commence operation in 2013. In addition, Wuhan Ethylene is planning to build a 200 000 t/a EVA project at Wuhan Chemical Industrial Park. This project is estimated to be put into operation after 2015. To sum up, it is expected that by 2015, China's EVA production capacity will reach about 500 000 t/a. By then, the country's dependence on EVA imports is expected to fall to 50%. The EVA market potential is huge.

Applications in lower-end market segments are suppressed due to comparatively high prices

In China, EVA is mainly used in foaming materials, hot melt adhesives, wires and cables, functional greenhouse films, encapsulating films, solar energy, toys, automotives and construction areas (see Figure 1). Its consumption areas are mainly concentrated in Guangdong, Fujian, Zhejiang, Jiangsu and Shandong provinces and Shanghai City. In Guangdong and Fujian provinces, EVA is mainly used as a raw material for shoes. In North and Northeast China, it is mainly used as agricultural films.
   In 2010, the consumption of EVA in China was about 650 000 tons, of which foaming materials for shoes accounted for about 63%, thin films 6%, hot melt adhesives 15%, and others 16%.
    Material for shoes: EVA for shoes usually has a VA content of 15% to 22%. As EVA foaming material features good softness, flexibility and resistance to chemical corrosion, it is widely used in high-end shoes, hiking shoes, slippers, sandals and interior decorative materials. In addition, this material is also used for the production of noise barriers, gymnastics mats and sealing materials. Guangdong province's Shunde and Zhongshan areas, Fujian province's Jinjiang and Quanzhou areas and Zhejiang province's Wenzhou area are the major shoe production bases in China. Every year, these areas consume a large amount of EVA.
    Films: EVA films are mainly used for the production of functional greenhouse films, which have good weather resistance, anti-fogging performance