On January 13, Oriental Shenghong issued two announcements, saying that its two subsidiaries are planning to spend 6.45 billion yuan to expand production of two major projects – super-simulation functional fiber and regenerated differentiated and functional polyester filament. If the two The large projects are expected to reach full production and are expected to contribute a total annual profit of 1.466 billion yuan. The details are as follows:
In order to meet the market’s growing objective demand for various differentiated and functional polyester fibers with excellent performance and further enhance the market competitiveness of polyester filament, the company’s secondary wholly-owned subsidiary Guowang High-tech Fiber (Suqian) Co., Ltd. It will invest in the construction of the second phase of a super-simulation functional fiber project with an annual output of 500,000 tons.
The estimated total investment of this project is RMB 3.612 billion, of which construction investment is RMB 3.415 billion and working capital is RMB 74 million. The construction period is 2 years. The sources of funds are self-owned funds and bank borrowings. The construction content is to produce polyester filament POY (pre-oriented yarn) and FDY (fully drawn yarn). The production plants and supporting projects constructed include: polyester unit CP3CP4, spinning unit 2, PTA warehouse 2, finished product warehouse 3, three-dimensional warehouse 1, three-dimensional warehouse 2, etc.
The project plans to introduce international advanced technology and equipment, adopt mature and advanced energy-saving technology and equipment, and comply with industry and local requirements for energy conservation and emission reduction. The 16-million-ton refining and chemical integration project of Shenghong Refining and Chemical (Lianyungang) Co., Ltd., built with the company’s secondary subsidiary, is a key supporting project in the upstream and downstream industrial chain, which can not only ensure the short-distance supply of raw materials, but also meet the needs of surrounding functional fibers. , and can reduce the operating costs of the textile industry and further enhance the competitiveness and comprehensive benefits of enterprises.
The company stated that the products of this project are mainly targeted at civilian products such as clothing decoration and can meet the market’s growing objective demand for various differentiated and functional polyester fibers with excellent performance. Through the implementation of this project, the company’s production capacity of polyester filament can be improved, the product varieties of polyester filament can be enriched, the super-simulation functionality and differentiation rate of the product can be improved, the added value of the product can be enhanced, and the market competition of the company’s polyester filament can be further enhanced. Strengthen the core competitiveness of enterprises and achieve sustainable development of enterprises in the context of fierce industry competition.
In addition, in order to meet the market’s growing objective demand for various differentiated and functional polyester fibers with excellent performance, embody the sustainable development concept of “green, low-carbon, and circular” and further enhance the market competitiveness of polyester filament, The company’s secondary wholly-owned subsidiary Jiangsu Ruibang Technology Co., Ltd. will invest in the construction of the second phase of a 250,000-ton annual recycled differentiated and functional polyester filament and supporting texturing project.
The total investment of this project is expected to be 2.838 billion yuan, of which the total construction investment is 2.579 billion yuan and the total initial working capital is 181 million yuan. Located in Siyang County Economic Development Zone, Suqian City, Jiangsu Province, the construction period is 2 years. The construction content is to build a second phase with an annual output of 250,000 tons of recycled differentiated and functional polyester filament (polyester pre-oriented yarn/fully drawn yarn POY/FDY) and 108 supporting texturing machines (using POY as raw yarn, through The post-processing treatment is polyester low stretch yarn DTY). This project will add a second-phase regeneration production line and public equipment in the original first-phase regenerated spinning workshop and comprehensive power station. It will mainly build a comprehensive water supply station, texturing workshop, three-dimensional warehouse, finished product warehouse and other buildings and related auxiliary supporting facilities.
The company stated that the products of this project are mainly targeted at civilian products such as clothing decoration, which can meet the market’s growing objective demand for various differentiated and functional polyester fibers with excellent performance, and embody the sustainability of “green, low-carbon, and circular” development concept. After the implementation of the project, it will be able to enrich the company’s product varieties, improve the differentiation rate of products, enhance the added value of products, further enhance the market competitiveness of the company’s polyester filament, enhance the core competitiveness of the company in the context of fierce industry competition, and achieve Corporate sustainability.
It is estimated that the total annual sales revenue of the above two projects after reaching production is expected to be 7.348 billion yuan, and the total annual profit will be 1.466 billion yuan, which will have a positive impact on the company’s operating performance.
The sources of funds for the investment in the above two projects are self-owned funds and bank borrowings.
According to the latest financial report, on January 6, Oriental Shenghong released its 2021 performance forecast, stating that in 2021, the company expects to achieve a net profit attributable to shareholders of listed companies of 4.1 billion to 5 billion yuan, a year-on-year increase of 435.00% to 552.44%. The company said: “During the reporting period, the company’s production and operations further improved and maintained good profitability. The production capacity of EVA photovoltaic resin produced by Sierbon was stable at more than 200,000 tons/year, and the annual output of Ganghong Fiber was 200,000 tons with differentiated functionality. The chemical fiber project and Zhonglu Technology’s 60,000-ton PET recycled fiber project per year were completed and put into operation in the second half of 2020, increasing profit contribution year-on-year.
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