Although excellent companies are different in their own way, some of the characteristics they possess are often similar.
These characteristics usually include being able to quickly make sensitive and accurate judgments on the policy dividends that relevant macro policies can bring, and being able to make quick and accurate judgments about the investment hot spots in the industry in which the company is located in the next 5 or even 10 years. Often able to make accurate decisions, be bold and determined, and seize the opportunity to quickly turn ideas into reality. At present, these characteristics are increasingly evident among the big players in the domestic petrochemical polyester market, and as a result, the investment trends in the industry are undergoing some noteworthy changes.
After Hainan Island, Dalian Changxing Island, and Zhejiang Zhoushan Islands, large chemical fiber companies began to plant their expansion flags in inland coal-rich areas and southwest coastal areas.
In June this year, Chinese chemical fiber giant Hengli Group announced that the group would invest in a new US$20 billion project in Yulin, Shaanxi, to convert coal into polyester fiber, which can be used to make clothing, Packaging materials and plastic products.
Hengli’s project will be the world’s first Chinese-led case in the coal chemical industry, and traditionally, coal is not a common raw material for the production of polyester fiber. According to the China Petroleum and Chemical Industry Federation, total investment in the field has reached $85 billion so far.
Previously, Hengli borrowed heavily to set up its own refinery to make polyester from crude oil.
Zhu Zhu, senior researcher at China Petroleum and Chemical Industry Federation Fang said: “Choosing Hengli, China’s largest polyester manufacturer, will help Shaanxi Province effectively develop its rich coal resources and promote the development of the local economy.
Heng Li Feng, spokesperson of Hengli Company, said that the project is planned to be operational by the end of 2025. The Yulin Municipal Government and Hengli proposed to set up a local factory when they first contacted, and it took the two parties about 10 months to reach an agreement. It is understood that the project Including converting 20 million tons of coal into 9 million tons of fine chemicals and polyester annually, said Salmon Lee, principal analyst at research consultancy Wood Mackenzie (Wood Mackenzie): “While converting coal into Industrial chemicals have been widely used in China. However, the production of polyester raw materials is a relatively new process and has not yet been commercialized. Hengli may be the first company to adopt such a large-scale operation. ”
As technology advances in large-scale coal chemical plants, the cost of building and operating such facilities will become increasingly competitive.
On September 23, Wang Zhiqing, Party Secretary and Chairman of Lu’an Chemical Industry Group, Guo Zhenhong, Full-time Deputy Secretary of the Party Committee and Vice Chairman, and Ma Junxiang, Deputy General Manager met with Ni Defeng, President of Zhejiang Hengyi Group, and his delegation who came to Lu’an for inspection. The two sides are based on a win-win relationship. We conducted in-depth discussions on future cooperation intentions, cooperation paths, and cooperation methods, and reached a consensus.
Wang Zhiqing welcomed Ni Defeng and his delegation for inspection, exchanges and cooperation. Ni Defeng discussed industry, cooperation, investment, etc. He talked about his insights and views on the development of the coal chemical industry and cooperation between the two parties. Hengyi Group has a long history in coal chemical industry, and expanding the field of coal chemical industry is in line with Hengyi Group’s industrial strategic development direction, which has laid a good foundation for cooperation between the two parties.
It is reported that Hengyi Group, as a leading chemical fiber enterprise, the two parties have responded to the situation and planned to carry out cooperation and exchanges, and grafted the advantages of state-owned enterprises and the private economy halfway, taking advantage of the situation and aiming for win-win cooperation development vision. At the meeting, both parties introduced the industrial development of their respective companies, conducted an in-depth analysis of cooperation projects and development advantages, and also conducted in-depth exchanges on the cooperation paths, cooperation methods, and process technologies of concern, and discussed the implementation of specific cooperation projects. Reached a consensus.
Next, with the in-depth layout of several large-scale private chemical fiber companies in the refining and chemical fields, China’s large-scale chemical fiber companies and the polyester and polyester industry have developed rapidly in the global “aromatics-PTA-polymer” industry. The bargaining power and comprehensive competitiveness in the “ester” industry chain will be further enhanced. Especially with the completion of new projects in Budian Coal Chemical Industry, it will open up a way for China’s large chemical fiber companies to better expand the international market.</p
