Hz info：On October 30, the handover ceremony for the 40,000-ton/year ultra-high molecular weight polyethylene project of Chengzhi Co., Ltd. was grandly held at the Chengzhi Huaqing New Materials Industrial Park.

This project is a key component of the "Chengzhi Co., Ltd. 2.0" strategic development plan, located in the Dongjiakou Economic Zone of Qingdao West Coast New Area. With a total investment of nearly 5.4 billion yuan, it was selected as one of Shandong Province's major projects for 2023. The first phase of the project plans to establish a production line with an annual capacity of 200,000 tons of polyolefin elastomer (POE) and another with an annual capacity of 40,000 tons of ultra-high molecular weight polyethylene. The facility employs China's leading "slurry process in batch reactors," featuring advanced technology, complex processes, and high automation levels.

In terms of performance, Chengzhi Co., Ltd. reported revenue of approximately 8.704 billion yuan in the first three quarters of 2025, a year-on-year increase of 5.66%; net profit attributable to the parent company was about 104 million yuan, down 52.58% year-on-year. Specifically, in the third quarter, revenue reached approximately 2.72 billion yuan, up 5.68% year-on-year, while net profit attributable to the parent company was around 84.4545 million yuan, marking a 169.63% year-on-year growth.

Ultra-high molecular weight polyethylene (UHMWPE) is a linear polyethylene with an extremely high molecular weight, whose unique molecular structure endows it with multiple superior properties, making it indispensable in high-end manufacturing, energy, and medical fields. Its impact strength is 10 to 20 times that of conventional polyethylene, surpassing even polycarbonate (PC) and a c rylonitrile butadiene styrene (ABS). It maintains excellent toughness even at low temperatures as low as -40°C, making it suitable for impact-resistant applications such as bulletproof armor and deep-sea cables, where few alternative plastics are viable. Additionally, UHMWPE boasts the highest wear resistance among plastics, being 7 times higher than carbon steel and 4 times higher than polytetrafluoroethylene (PTFE), making it ideal for severe wear conditions like mine machinery linings and bearing rollers. With a friction coefficient as low as 0.05 to 0.11, it requires no additional lubrication and can be used in moving components such as gears and guide rails, reducing equipment maintenance costs. UHMWPE is nearly insoluble in any organic solvent and remains stable in highly corrosive media like concentrated sulfuric acid and nitric acid, outperforming most engineering plastics.

UHMWPE, with its comprehensive properties of "high wear resistance, impact resistance, chemical corrosion resistance, self-lubrication, and lightweight," has become a key material for addressing extreme working conditions, offering irreplaceability in certain specialized environments. This is a critical consideration driving active investment by both Chinese and foreign enterprises. Additionally, high profit margins serve as a key factor motivating such investments. Since 2017, China's UHMWPE industry has maintained high profitability, even reaching a theoretical profit margin of 49% in 2020. Despite the overall downturn in China's chemical industry in 2024, the sector still preserved a profit margin of 24%.

Additionally, driven by demand, China's UHMWPE production capacity has experienced significant growth in recent years. By the end of September 2025, China's production capacity reached 551,100 tons, marking a 36.4% increase compared to the end of 2024.