Xinfengming, one of the three domestic polyester filament giants, announced on the evening of July 4 that the wholly-owned Sun Company Dushan Energy invested and constructed a 600,000-ton intelligent and functionally differentiated polyester fiber project. The conditions for production have been met and it was officially put into production on July 4.
It is understood that the project introduced German Barmag high-speed winding equipment and domestic supporting equipment As well as public engineering equipment, it uses advanced technologies such as large-capacity flexible polymerization, polyester melt direct spinning, copolymer blending online addition, intelligent manufacturing and green manufacturing to build 2 sets of polyester production equipment and 20 spinning production lines, forming an annual The production capacity is 600,000 tons of intelligent and functional differentiated fiber. After the project is put into operation, Xinfengming Group’s polyester production capacity will reach 6 million tons!
Xinfengming Group Co., Ltd. is located in Zhouquan, Tongxiang, a famous chemical fiber town. Xinfengming has always focused on the field of civilian polyester filament since its establishment. Its main business is the research and development, production and sales of civilian polyester filament, as well as the production of PTA (purified terephthalic acid), one of the main raw materials of polyester filament. Xinfengming’s polyester filament products cover multiple series and more than 400 specifications and varieties such as POY (pre-oriented yarn), FDY (fully drawn yarn) and DTY (draw textured yarn), and are mainly used in downstream clothing, home textiles and industries. Textiles and other fields. After nearly 20 years of hard work, Xinfengming has become a leading enterprise in the polyester filament industry, ranking among the top three in the domestic civilian polyester filament industry. In 2017, 2018 and 2019, the domestic market share of Xinfengming’s civilian polyester filament product output was 8.98%, 9.89% and 10.32% respectively. The market share continues to increase and its industry status remains among the top three.
Xinfengming has clear expansion plans in the field of polyester filament , the construction of new production capacity is very impressive! On the morning of May 22, the groundbreaking ceremony for the polyester project of Xinfengming Xinyi Industrial Base was successfully held. The project has a total investment of 18 billion. It is planned in one step and constructed in phases. It adopts internationally advanced large-capacity and flexible polymerization technology to build 9 sets of internationally leading melt direct spinning and straight-drawn film production lines, with a layout of 2.7 million tons of differentiated fibers. It is planned to be completed and put into production gradually from the end of October 2022. Once completed and put into production, the annual sales revenue will reach 26 billion yuan, with profits and taxes of 2 billion yuan!
Polyester filament is the main source of Xinfengming’s operating income and gross profit. From 2012 to 2020, Xinfengming’s market share in terms of output increased from 4.13% to 11.78%, ranking first in the industry, and it has maintained a high production capacity utilization rate and high production and sales rate of nearly 100% all year round. With sufficient production and sales, Xinfengming has strong demand for supporting production capacity. This has also become the main driving force for Xinfengming to deploy new production capacity again. Xinfengming’s polyester filament production capacity expansion plan is clear and its growth momentum is sufficient. In the future, Xinfengming’s polyester filament sales revenue and market share will reach a new level.
In addition to polyester filament, Xinfengming will further expand the PTA field and expand its layout in the future!
Xinfengming is committed to actively improving the upstream industrial chain of polyester filament. Sun Company’s Dushan Energy Phase I 2.2 million tons PTA project was put into operation at the end of October 2019. The second phase of the 2.2 million-ton PTA project was put into operation in October 2020. It adopts BP’s latest generation PTA process technology, and the transportation distance between the PTA production base and the polyester filament production base is short, which saves logistics and transportation costs and improves its energy and material consumption levels. Obviously, it has a strong late-mover advantage. Xinfengming’s PTA production capacity has reached 5 million tons, basically achieving self-sufficiency in PTA, an important raw material for polyester filament.
Wang Zhe, an analyst at CITIC Securities, previously said that with the smooth commissioning of Xinfengming’s two phases of 2.2 million tons of PTA projects each, Xinfengming will extend the industrial chain upward to the PTA link. . Although the PTA segment is currently at a low point due to the industry’s expansion cycle, the company’s PTA production capacity is the latest technology in the industry, and it is expected to form a synergistic support with downstream polyester production in the future, reducing costs by transmitting thermoelectricity to downstream polyester, and in the industry boom There is still a strong competitive advantage at the low point.
Xinfengming expects to maintain a filament production capacity of approximately 600,000 tons per year in the future, and combined with its production status, will promote a total of 4 million in the next three to five years. The planning and construction of PTA production capacity of 100,000 tons will eventually achieve the construction goals of “two 10 million tons” of polyester and PTA. </p
