On November 29, the 2021 China Petroleum and Chemical Enterprises Top 500 list was released. More than 30 chemical fiber-related companies were shortlisted, and Hengli Group Co., Ltd. ranked third on the list.
2021 Ranking of China’s Top 500 Petroleum and Chemical Enterprises (Chemical Fiber Related Enterprises)
The editor took a look at the list over the years. Basically, these are the top polyester products in recent years. There is a saying that factory orders for the world’s most advanced winding heads and other equipment are scheduled to be a few years away. , and the equipment produced will be given priority to some leaders in the Chinese polyester market. The importance of these leaders in the global polyester market is evident. Competition in the polyester industry has also seen serious involution.
In recent years, the top 10 leaders in the domestic polyester industry have been continuously promoted, and the comprehensive competitiveness of the leading enterprises’ industrial chain has been continuously enhanced.
In recent years, with the rapid development of China’s economy, China’s polyester industry has gradually improved its global market position. Longzhong data shows that China’s polyester output has increased its global share from 43.54% to around 64.35% in more than ten years.
Global and Chinese polyester production from 2010 to 2020
China is the global polyester production and consumption center, and Jiangsu and Zhejiang are China’s main polyester production areas. As can be seen from the figure below, the polyester production capacity of Zhejiang and Jiangsu provinces accounts for approximately 77% of the country’s total polyester production capacity.
China’s polyester production capacity distribution map in 2021
Zhejiang is the largest production and sales province, and Zhejiang is mainly concentrated in Huzhou, Xiaoshao, and Ningbo, and the polyester industry layout is relatively concentrated.
Domestic technological progress promotes rapid growth of polyester production capacity
In the early stage, the production technology sources of China’s polyester industry were mostly Swiss Ivenda, American DuPont, Barmag, etc., and the proportion of domestic production processes used was relatively small. With the continuous advancement of domestic technology, about 60% of China’s polyester production enterprises mostly use China Textile Technology Co., Ltd. Institute production technology.
China’s polyester production unit commissioning time
Comparison of polyester plant construction in different periods
The localization of China’s polyester production technology and equipment, and the continuous expansion of the scale of single-unit production have reduced investment costs and shortened the construction cycle of the equipment. In recent years, China’s production capacity has entered a period of rapid growth, especially from 2011 to 2015. There were 79 sets of new production capacity. Since 2016, the speed of new equipment put into production has slowed down compared with the previous cycle. However, overall, during the “Thirteenth Five-Year Plan” period, 69 sets of domestic new production equipment were put into production, which is still in the stage of rapid growth. According to statistics, 17 units are expected to be put into production in 2021, and most of the new production capacity will be concentrated in leading polyester companies.
Production capacity of the top 10 polyester manufacturers in China (unit: 10,000 tons)
At the same time, leading polyester companies dominate the list, and competition between them has become more intense. The current CR10 industry concentration rate in the polyester industry has increased from 54.2% in 2019 to the current 61.9%. According to Longzhong statistics, CR10 is expected to further increase to more than 80% in 2023. According to the classification standards of industrial concentration by American economist Bain and the Japanese Ministry of International Trade and Industry, the industrial market structure is roughly divided into two types: oligopoly (CR10 ≥ 40%) and competitive type (CR10 < 40%). Among them, the oligopolistic type is further subdivided into extremely high oligopolistic type (CR10 ≥ 70%) and low concentration oligopolistic type (40% ≤ CR10＜70%); the competitive type is further subdivided into low concentrated competitive type (20% ≤ CR10＜40 %) and dispersed competitive type (CR10＜20%). Applying this theory, the current industrial concentration of China's polyester industry can be classified as low concentration and oligopoly. Taking a look at the rankings on the list, these new changes reflect from the side that nowadays, even the most stable old timers may be overtaken by their peers and lose in the competition if they are not careful.
Under the current international economic situation, high industry concentration means that the comprehensive competitiveness of the industrial chain has been enhanced, and competition among enterprises has become increasingly fierce. As far as polyester filament is concerned, the industry concentration is high, and larger companies play a certain role in the market.They jointly promote market development and maintain industry profit levels, which to a certain extent is also beneficial to the healthy and stable development of the industry. In the future, the competition in the polyester market will further intensify, the granularity of enterprise operations will be refined, and cost control will become more stringent. Polyester production enterprises will lengthen and broaden the industrial chain through horizontal or vertical integration, with large scale, strong strength, and supporting industrial chain. Well-established companies will have more say. Therefore, in the future polyester industry, brand effect and large-scale development will be important bargaining chips for companies to compete for the market.
</p
