On 6th August ETIC signed a licensing agreement for the annual production of 50,000 tons of EPDM with Guoneng Yulin Chemical Co., Ltd. (Yulin City, Shaanxi Province), a coal-chemical enterprise belonging to a major Chinese state-owned coal energy company. The company will begin construction with the goal of commencing operations by the end of 2028.

EPDM produced using our technology is manufactured with a vanadium catalyst. This makes it the ideal material for thermoplastic elastomers and foam products, its primary applications, and to reduce weight it is increasingly replacing solid products in automotive door seals, trunk seals and other applications, with demand surging as EV adoption advances and automakers place a strong focus on vehicle weight reduction.

This marks our third licensing agreement, following deals with SHAANXI YUNENG ENERGY & CHEMICAL NEW MATERIAL CO., LTD. (50,000 tons annual capacity, under construction, scheduled to start in late 2027) and Shandong Dawn Polymer Co., Ltd. (25,000 tons annual capacity; scheduled to start in late 2027). As naphtha prices are currently soaring due to the blockade of the Strait of Hormuz by Iran, Guoneng Yulin Chemical Co., Ltd. possesses a significant competitive advantage, since it produces ethylene and propylene using abundant, low-cost coal as a feedstock (via the CTO process). Looking forward, we intend to actively expand our EPDM licensing business by further improving our existing technologies, broadening our product grade lineup, and strengthening our marketing efforts in India and Africa.