Dongfang Shenghong plans to build two major projects with a total investment of over 14 billion yuan.
On March 23, Dongfang Shenghong announced that its secondary wholly-owned subsidiary Honghai New Materials (Suqian) Co., Ltd. plans to invest in an intelligent functional fiber project with an annual output of 1 million tons, mainly including polyester filament POY (pre- There are 42 oriented yarn) production lines, 6 FDY (fully drawn yarn) production lines, production plants, auxiliary supporting facilities, etc. The project has a total investment of 6.655 billion yuan and will be constructed in two phases, each with a construction period of two years.
Dongfang Shenghong said that the project is mainly targeted at civilian products such as clothing decoration, relying on the company’s strong technical research and development capabilities to produce high shrinkage polyester (HSPET), flame retardant polyester, antistatic, anti-ultraviolet, antibacterial and other functional differences Chemical fibers can meet the market’s growing objective demand for various differentiated and functional polyester fibers with excellent properties. The products have broad market prospects. Through the implementation of this project, the company’s polyester filament production capacity can be improved, product types can be enriched, product added value can be increased, the market competitiveness of the company’s polyester filament can be further enhanced, and the company’s core competitiveness can be enhanced in the context of fierce industry competition. Achieve sustainable development of enterprises. According to the company’s calculations, the project is expected to have annual sales revenue of 8.014 billion yuan and total annual profit of 1.309 billion yuan. After the project reaches production, it will have a positive impact on the company’s operating performance.
Another announcement released on the same day showed that Lianyungang Hongke New Materials Co., Ltd., a third-level holding subsidiary of Oriental Shenghong, plans to invest in the construction of a degradable materials project (Phase I). The project will build a 340,000 tons/year maleic anhydride unit, a 300,000 tons/year BDO unit, a 180,000 tons/year PBAT unit and public auxiliary facilities. The project has a total investment of 7.471 billion yuan and a construction period of three years. The estimated annual sales revenue is 5.874 billion yuan and the annual sales profit is 2.119 billion yuan.
Using Shenghong refining and chemical products as raw materials
Maximizing chemical fiber costs
According to the announcement, the above two major projects are downstream industry chain supporting projects of Shenghong Refining and Chemical (Lianyungang) Co., Ltd.’s 16 million tons refining and chemical integration project, and both use Shenghong Refining and Chemical Integration Project products as raw materials. It can not only ensure the short-distance supply of raw materials and meet the needs of surrounding functional fibers, but also reduce operating costs and further enhance the competitiveness and comprehensive benefits of enterprises.
It is understood that the “Shenghong Refining and Chemical Integration” project is located in Xuwei New District, Lianyungang City, which mainly develops leading industries such as petrochemicals, high-end equipment manufacturing, port logistics trade processing, and high-performance new materials. The Lianyungang petrochemical industry base in the area is my country’s One of the seven major petrochemical industry bases, this has also brought a considerable market to Dongfang Shenghong’s “refining and chemical integration” project.
According to industry report analysis, there are many chemical projects in Lianyungang Petrochemical Industrial Park and the demand for chemical raw materials is huge. With the commissioning of the “Shenghong Refining and Chemical Integration” project, after the products are sufficient for self-use, the remaining products can be sold within the region. Due to the short transportation radius, the cost is more advantageous than similar products outside the region. It is expected that 70% of some chemical products from Dongfang Shenghong’s refining and chemical projects can be digested in the park.
In fact, in addition to market space, convenient transportation also adds impetus to the sustainable development of the Shenghong Refining and Chemical Integration Project. It is reported that Xuwei New District Xuwei Port Area is building a 300,000-ton waterway, two 300,000-ton crude oil terminals and 10 50,000-100,000-ton liquid chemical terminals are under construction. The refining and chemical project is equipped with a 300,000-ton crude oil terminal and four 50,000-ton liquid chemical terminals. After the crude oil is transported to the port, it can be piped into the warehouse, which can effectively achieve cost savings in the crude oil transportation link.
China’s four major private refining and chemical projects have outstanding performance
Dongfang Shenghong is expected to become a first-tier domestic refinery
At the same time, Shenghong Refining and Chemical’s 16 million tons refining and chemical integration project is also one of the four major private refining and chemical projects in China. The remaining three major private refining and chemical projects are Zhejiang Petrochemical’s 40-million-ton refining and chemical integrated project, Hengli Petrochemical’s 20-million-ton integrated refining and chemical project, and Hengyi Petrochemical’s 8-million-ton refining and chemical integrated project.
According to the research report of Guosheng Securities, the current average size of domestic refineries is only 4.5 million tons, which is still far lower than the US average of 7.5 million tons. It is also significantly lower than the global average, and it also lags behind significantly in terms of operating rates. 2019 is the first year for large-scale private refining and chemical operations to be put into operation. Hengli Petrochemical’s 20 million tons, Hengyi Brunei’s 8 million tons, and Zhejiang Petrochemical’s Zhoushan Phase I 20 million tons equipment have been put into operation one after another. In 2020, they have successively delivered excellent performance answers. These Private integrated refining and chemical equipment has extremely obvious advantages over traditional refineries in terms of single-line scale, chemical product yield, and process technology. Guosheng Securities said that according to research, Shenghong Refining and Chemical, which is about to be put into operation, is also expected to be one of the top companies in the future. Ranked among the first-tier domestic refineries.
It is understood that Dongfang Shenghong’s Shenghong Refining and Chemical Integration Project received approval from the National Development and Reform Commission in September 2018; construction officially started in December of the same year. The total investment of the project is 67.7 billion yuan, with a crude oil processing capacity of 16 million tons per year. Once completed and put into operation, it will set a new record for the single-process scale of China’s refining and chemical projects.
Since last year, thanks to policy promotion, we canThe degradable plastic market is experiencing great growth. Hengli Petrochemical, one of the four major private petrochemical companies, is also making great efforts to lay out its plans. In January and February this year, Hengli Petrochemical signed contracts for 600,000 tons and 300,000 tons of PBS biodegradable plastic projects respectively. According to calculations, the company’s contracted and put into production of PBS biodegradable plastic projects has a production capacity of more than 933,000 tons, which is nearly four times the national PBS production capacity in 2019. Benefiting from the high prosperity of the chemical industry, Dongfang Shenghong’s net profit will increase significantly in 2021, which is expected to reach 4.1 billion-5 billion yuan, a year-on-year increase of 435%-552.44%.
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