Overview - Thermoplastic Polyurethanes (TPU) are high-performance polymer materials made from MDI, TDI, and polyols, known for their excellent elasticity and durability [2][8] - The TPU market is experiencing stable growth in traditional applications such as footwear, films, sealing materials, and hoses, driven by increasing consumer demands for performance and comfort [1][16] Industry Development - The TPU industry in China has evolved significantly since its introduction in the 1980s, with rapid advancements in technology and production capabilities leading to a substantial market presence [8][10] - By 2024, China's TPU consumption is projected to reach 720,000 tons, with production capacity expected to hit 1.5 million tons, resulting in a capacity utilization rate of approximately 59.7% [1][16] Market Applications - Footwear remains the largest consumption market for TPU in China, accounting for nearly 30% of the total market, with the shoe industry experiencing a market size of 531.12 billion yuan in 2023, growing by 7.9% year-on-year [14][16] - Emerging applications for TPU are expanding into areas such as 3D printing, smart wearables, and medical devices, driven by its flexibility and biocompatibility [1][16] Competitive Landscape - The TPU market in China is characterized by a "two super, many strong" competitive structure, with Wanhua Chemical and Huafeng Group as the leading players [19] - Wanhua Chemical is the largest TPU producer in China, with a revenue of 182.1 billion yuan in 2024, where polyurethane products contribute 41.65% of total revenue [21] - Other notable companies include Meirui New Materials and Shanghai Huide Technology, which focus on TPU R&D and production, contributing to the competitive landscape [23] Future Trends - The TPU market is expected to maintain a loose supply with a slowdown in expansion speed, while competition intensifies, leading to increased market concentration [25] - There is a growing emphasis on environmentally friendly TPU products, such as bio-based and biodegradable TPUs, alongside advancements in multifunctional applications through nanotechnology and composite materials [25]

Core Viewpoint - Huafeng Chemical's 19 proposals related to a 6 billion yuan acquisition were collectively rejected, impacting its strategic expansion in the polyurethane industry [1][2]. Group 1: Acquisition and Market Impact - The proposed acquisitions aimed to enhance Huafeng Chemical's product matrix across multiple key segments of the polyurethane industry, facilitating vertical integration from raw materials to end products [2]. - The TPU market is experiencing rapid growth, with a global market size of $3.804 billion in 2023, projected to reach $5.83 billion by 2030, reflecting a CAGR of 6.5% from 2024 to 2030 [2]. Group 2: Competitive Landscape - Major global manufacturers in the TPU sector include BASF, Covestro, Huntsman, Lubrizol, Wanhua Chemical, Huafeng Chemical, and Merck, all actively expanding their production capacities [3]. - Covestro announced a multi-million euro investment in a TPU production base in Zhuhai, Guangdong, aiming for an annual capacity of nearly 120,000 tons [3]. Group 3: Innovations and Applications - The TPU industry is diversifying with innovations such as high-performance paint protection films (PPF) launched by Covestro in collaboration with Shell and others, entering the supply chains of major automotive brands [5]. - The demand for high-quality PPF is rapidly increasing, with consumers seeking enhanced protection features and sustainability [6]. Group 4: Bio-based TPU Developments - Bio-based TPU is emerging as a significant trend, with companies like Wanhua Chemical and BASF developing products from renewable resources, enhancing their competitive edge in sustainability [7][9]. - BASF has initiated a strategy combining product innovation, closed-loop production, and global certification to strengthen its position in the bio-based TPU market [7].