On April 8, Hengyi Petrochemical Co., Ltd. (000703.SZ) announced that part of the “new functional fiber project with an annual output of 566,000 tons” constructed by the company’s subsidiary Fujian Yijin Chemical Fiber Co., Ltd. has recently been completed Completed and officially put into operation.
This project uses the existing land in Yijin, Fujian, and invests in building two new units of 250,000 tons/ Annual polyester production equipment (a total of 500,000 tons/year) and one set of 100,000 tons/year polyester production equipment are planned to produce 250,000 tons of new functional FDY fiber, 250,000 tons of new functional POY fiber, and polyester staple fiber. 66,000 tons, of which new functional POY fiber is used in the supporting production of 250,000 tons of new functional DTY fiber. The project uses advanced technologies such as domestic large-capacity flexible polymerization technology, polyester melt direct spinning technology, copolymer blending online addition technology, intelligent manufacturing technology and green manufacturing technology to form a new functional fiber with an annual output of 566,000 tons. production capacity.
It is understood that part of the equipment of the project has been completed recently and officially put into operation. After put into operation, 250,000 tons/year of new functional FDY fiber and 66,000 tons/year of polyester staple fiber will be added. , the remaining production capacity will be advanced in an orderly manner in accordance with the company’s plan to ensure that the project is put into production as soon as possible. As of the date of this announcement, Hengyi Petrochemical’s total production capacity of polyester fiber (filament and staple fiber) has reached 7.5 million tons per year.
The Hengyi Petrochemical announcement pointed out that the commissioning of the project will effectively increase the company’s polyester fiber production capacity and further improve the integration of the listed company’s “PX-PTA-polyester fiber” industrial chain The layout will produce significant synergy with Fujian Yijin’s existing equipment, broaden the company’s product categories, optimize product structure, and reduce product production costs. The products of this project are differentiated functional fibers, which have stronger market competitiveness than ordinary fibers. Therefore, the commissioning of this project will help improve the company’s core competitiveness, promote the transformation and upgrading of the regional chemical fiber industry and textile and garment industry, improve quality and efficiency, enhance the company’s profitability, and have a long-term positive effect on the company’s operating performance.
It is worth noting that in the process of rapid expansion of large leading companies, different companies have highlighted certain differentiated ideas. Among them, Hengyi Group is a typical representative of rapidly expanding the scale of polyester through mergers and acquisitions and restructuring in the capital market.
Changes in production capacity trends of the six major polyester factories from 2018 to now:
In this regard, Zhejiang Heng Gao Lili, Financing Director of Yi Group Co., Ltd., said: “In the past few years, we have reinvented Hengyi. By operating in the capital market, we have rapidly expanded our polyester production capacity. Hengyi has always been a leader in the PTA field, with The annual production capacity is 13.5 million tons, but previously, Hengyi’s annual polyester production capacity was only more than 1 million tons, which is an ‘inverted triangle’. Since China promoted the ‘supply-side structural reform’, Hengyi Group has seized the opportunity Opportunities to quickly integrate companies in the polyester industry that have certain technical capabilities but have fallen into bankruptcy due to broken capital chains. In order to acquire and merge suitable projects, in 2017, Hengyi also joined forces with several companies to establish a ‘Merger and Acquisition Fund’. Since 2017, Hengyi has rapidly increased its polyester production capacity by more than 4 million tons through acquisitions and mergers. In this way, Hengyi has achieved expansion at the fastest speed and at the lowest cost. Moreover, some of the polyester factories we acquired have also There is a lot of land, which has laid the foundation for our continued expansion in the future.”
Since 2017, Hengyi Group has been grabbing Seizing the opportunity of supply-side structural reform, actively leveraging capital power, and through multiple acquisitions and mergers, we have achieved large-scale expansion of millions of tons of polyester production capacity at the fastest speed and at the lowest cost. Mainly including: first, Jiaxing Yipeng, Taicang Yifeng, and Shuangtu New Materials have added a total of 1.55 million tons of polyester and downstream filament production capacity; second, Hangzhou Yijin’s merger and acquisition was completed at the end of April, adding 850,000 tons of filament; in addition , projects under construction include Jiaxing Yipeng’s 500,000 tons of FDY under construction, which is expected to be fully released in 2020, and the “1 million tons of differentiated environmentally friendly functional fiber construction project with an annual output of 1 million tons per year” project that was put into production on February 23. Two projects After completion, a total of 1.5 million tons of polyester production capacity will be added. With the planned new and expanded production projects of its holding companies in 2020 being successfully put into operation, Hengyi Group officially announced at the beginning of the year that its annual polymerization capacity has reached 10.06 million tons, taking the lead among global peers to break through the 10 million tons mark.
In the past five years, China’s polyester and polyester industry has accelerated structural adjustment, transformation and upgrading, industry concentration has increased, and the benefits of leading the concentration have emerged. Hengyi Petrochemical has increased its volume of polyester in recent years. In the future, the capacity of polyester raw materials such as PX, PTA, and MEG will be greatly expanded, and the cost of polyester will remain loose. The increase in filament concentration will also help to maintain relatively stable prices. It is expected that the price difference of filament is expected to be Expansion, and currently Hengyi Group has firmly established itself as the “boss” in aggregate production capacity.�The gap between the top ten companies is getting wider and wider. Polyester projects in the later stage will continue to be put into production. I am afraid that the companies in the back will not be able to catch up even if they try hard to catch up…</p
