As market share continues to increase and domestic polyester production capacity continues to grow, a group of leading companies have begun to accelerate their production capacity layout due to their strong financial strength and obvious cost advantages in industrial chain integration. Recently, Xinfengming After the polyester project of Jiangsu Xinyi Industrial Base was officially started, another Zhejiang chemical fiber giant also started building a polyester project in Jiangsu. The textile industry in northern Jiangsu welcomed another “strong general”!
Hengyi Petrochemical Co., Ltd. announced on the evening of May 31 that in order to meet the growing market demand for functional and differentiated fibers, the company’s subsidiary Suqian Yida New Materials Co., Ltd. plans to invest in the construction of a new environmentally friendly differentiated fiber project with an annual output of 1.1 million tons. The investment amount is estimated to be RMB 3.850 billion, and the project construction period is three years. According to the company’s preliminary calculations, the after-tax internal rate of return of this project is 15.75%, and the after-tax investment recovery period (including the construction period) is 8.09 years.
It is understood that the construction site of Suqian Yida’s new environmentally friendly differentiated fiber project with an annual output of 1.1 million tons is located in the company’s factory area at No. 96 Jinghang Avenue, Suqian High-tech Industrial Development Zone, Jiangsu Province. The project utilizes The factory covers an area of approximately 500 acres, and the newly built polyester workshop, spinning workshop, PTA warehouse, supporting power station, sewage treatment and other buildings (structures) cover an area of approximately 463,401 square meters. The project mainly adopts polymerization, melt direct spinning technology, comprehensive intelligent manufacturing and green manufacturing technology, builds 3 sets of polyester production equipment, introduces domestic and foreign advanced short fiber production equipment, and adds a new environmentally friendly differentiated fiber with an annual output of 1.1 million tons. production capacity.
In the first quarter report of 2021 disclosed by Hengyi Petrochemical on April 26, 2021, it was mentioned that due to the slow recovery of the epidemic in the first quarter of 2021, all aspects of Hengyi Petrochemical Gradually return to pre-epidemic levels. Data shows that the company achieved operating income of 30.845 billion yuan in the first quarter of 2021, a year-on-year increase of 63.44%.
As the world’s leading integrated leader in the “refining and chemical fiber” industrial chain, Hengyi Petrochemical maintains strategic focus in 2020, and the key project of “One Belt and One Road” – Hengyi Wen The Lai Refining and Chemical Project operates smoothly, continues high-load production, and its competitive advantage continues to improve; the leading competitive advantage of the PTA business segment is further consolidated, and product profitability remains at the leading level in the industry; the main chemical fiber business focuses on high-quality development, and the level of product differentiation is further enhanced Expansion, profitability increased significantly; at the same time, production became increasingly lean, brand quality continued to improve, management innovation continued to be optimized, and operation quality reached a new level. The annual report shows that Hengyi Brunei’s refined oil and chemical products sold smoothly in 2020, with 8.0298 million tons of products sold throughout the year, including 2.1917 million tons of chemical products and 5.8381 million tons of refining products.
Why Northern Jiangsu again? It has become an important investment location for industrial transfer!
As the largest textile industry province in the country, Jiangsu Province has ranked first in the country in total textile volume for more than 30 years since 1985, accounting for about 20% of the country. In recent years, due to cost and other factors, a large number of textile companies in southern Jiangsu have accelerated the transfer of manufacturing links to northern Jiangsu. Xinyi High-end Textile Industrial Park is located in Xinyi City, the “Northern Gate” of Jiangsu Province. Under the guidance of Jiangsu Province’s cross-river development strategy, it has proactively adjusted and actively undertaken, and has rapidly developed into one of the important textile and garment industry bases in northern Jiangsu.
The originally unknown textile industry in northern Jiangsu rose rapidly almost “overnight” , the huge textile cluster market is beginning to take shape. This in itself is a huge temptation for polyester companies.
Take Xinfengming as an example. As one of the “three giants” in the polyester filament industry, the company currently has a polyester filament production capacity of 5.3 million tons and has formed Tongxiang Zhouquan. The three major production bases, Huzhou Wuxing and Pinghu Dushan, are all located in Zhejiang Province. This investment in the construction of Xinyi Industrial Base is the company’s first deployment of polyester filament and related product production capacity outside Zhejiang Province. Public information shows that the Xinfengming Xinyi polyester project only began to contact Xinyi investment personnel in Xuzhou City, Jiangsu Province on December 1, 2020, and the project signing was achieved on January 20 this year. From communication and negotiation to formal signing, only It took 51 days, which not only reflects the company’s strategic execution ability to seize the industrial transfer opportunities in northern Jiangsu and expand the polyester filament market, but also benefits from the strong support of the Jiangsu and Xinyi governments for attracting investment in the project. According to media reports, the project has been included in the list of major projects in Jiangsu Province in 2021, and Xuzhou Xinyi has established a leadership group headed by party and government leaders to promote the early completion and production of the project.
Tongkun Group also signed an investment agreement with the Shuyang Economic and Technological Development Zone Management Committee at the end of last year. The company invested approximately 15 billion yuan in Shuyang County, Jiangsu Province, and built a new factory with an annual output of 2.4 million yuan. tons of filament (short fiber), 500 texturing machines, 10,000 looms, supporting dyeing and finishing and public thermal energy center projects. It stated in the announcement that the completion of the project will also enhance the competitiveness of the new materials industry in Shuyang Economic and Technological Development Zone and build a first-class chemical fiber manufacturing base. It will help enterprises optimize their product structure and enhance their core competitiveness.
Coincidentally, in the first half of last year, a total investment of 23 billion yuan was planned to build a factory with an annual output of 1.2 million tons of differentiated super-simulation functional chemical fibers and an annual output of 1 billion meters of functional fabrics. The Hengli Fashion Industrial Park project and other projects were launched in the Suqian Port Industrial Park located on the Sucheng Canal.��Opening ceremony. After the project is fully put into operation, it can achieve annual sales revenue of more than 30 billion yuan and tax payments of 1 billion yuan.
As early as 2007, Hengli Group actively responded to the strategic call of the Provincial Party Committee and the Provincial Government to “transfer industries from north to south and achieve common regional development”, supporting northern Jiangsu and joining hands with Suqian. Over the past 13 years, Hengli Group has continuously increased its investment in Suqian, with a total investment in Suqian exceeding 10 billion yuan. It has developed into three major sectors: polyester new materials, textiles and hotels, with diversified businesses such as real estate, finance and trade. It is a leading enterprise in industrialization development and has become the largest north-south industrial investment project in Jiangsu Province.
In addition, under the background of environmental protection and industrial gradient transfer, the original textile printing and dyeing enterprises around Taihu Lake have relocated to the northern Jiangsu area, which has a location advantage for polyester projects. Product sales are guaranteed.
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