Xinfengming Group, the leading domestic chemical fiber listed company, is going to expand its polyester production capacity again. Xinfengming Group Co., Ltd. recently announced that the company will publicly issue 2.5 billion yuan of convertible corporate bonds.
The funds raised from this issuance will be used for the annual production of Tongxiang Zhongyi Chemical Fiber Co., Ltd. 600,000 tons of intelligent, low-carbon differentiated fiber project, Huzhou Zhongyue Chemical Fiber Co., Ltd.’s annual output of 300,000 tons of functional, differentiated fiber new material intelligent production line project, and Zhejiang Dushan Energy Co., Ltd.’s annual output of 2.2 million tons of green intelligence ation PTA project.
It is understood that the land acquisition of 903 acres for the three projects has cost a total of nearly 6.1 billion! With the successful launch of the 300,000-ton polyester filament project of Zhongyi Chemical Fiber, a subsidiary of Xinfengming, in April 2020, Xinfengming currently has a production capacity of 4.6 million tons of polyester filament, of which POY products account for about 75% and the remaining 25% for FDY and DTY. In the second half of 2020, the company plans to add 300,000 tons of polyester filament production capacity, and it is expected that the company’s polyester filament production capacity will reach nearly 5 million tons by the end of 2020. In 2021, the company plans to launch a polyester filament production capacity of 300,000 tons in the Huzhou production base and a polyester filament production capacity of 600,000 tons in the Dushan Port production base. By the end of 2021, Xinfengming’s total polyester filament production capacity will reach 6 million tons. . From 2022 to 2023, the company will gradually invest a total of 1 million tons of polyester filament production capacity. It is expected that by the end of 2023, Xinfengming’s polyester filament production capacity will reach 7 million tons. In addition, Xinfengming is committed to actively improving the upstream industrial chain. Sun Company’s Dushan Energy Phase I 2.2 million-ton PTA project entered the trial production stage at the end of October 2019 and was put into production in November and December 2019, which can meet the needs of some polyester long products. demand for raw materials for silk production.
Xin Fengming said that the downstream industry of polyester filament is mainly the textile industry, and the steady growth of polyester filament consumption is closely related to the strong demand of the downstream textile industry. The textile industry is my country’s traditional pillar industry and occupies an indispensable position in the development of the national economy. In recent years, with the development of my country’s economy and the improvement of people’s living standards, my country’s textile industry has maintained a good development trend. The sales revenue of my country’s textile industry products has increased from 3,217.356 billion yuan in 2012 to 4,943.645 billion yuan in 2019, a compound growth rate. The rate is 6.33%. As an upstream industry in the textile industry, the consumption of polyester filament has also shown steady growth. In 2011, the apparent domestic consumption of polyester filament was 18.3381 million tons, reaching 34.6999 million tons in 2019, with a compound growth rate of 8.30%. The company will add 900,000 tons of polyester filament production capacity, which will account for a low proportion of the entire polyester filament market and have a small impact on the entire market. The overall polyester filament market has huge capacity, which will help digest new production capacity.
Market share continues to increase
The later market will be competition between mainstream polyester factories
In recent years, the production capacity of leading enterprises in the domestic polyester industry has accelerated significantly, and the concentration of production capacity in the domestic polyester industry has continued to increase. Taking Xinfengming as an example, 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 the industry status is maintained In the top three.
In recent years, leading companies in the domestic polyester industry have begun to continuously expand domestic polyester production due to their strong financial strength and obvious cost advantages in industrial chain integration. The industry is accelerating the layout of production capacity. With the concentration of production capacity becoming more and more obvious, the voice of leading companies in the polyester industry continues to increase. According to Longzhong data, in 2018, the top ten polyester factories in the domestic polyester industry had a total production capacity of 30.19 million tons/year, accounting for 54.49% of the total domestic polyester production capacity. After concentrated production in recent years, As of now, the top ten polyester factories in the domestic polyester industry have a total production capacity of 38.185 million tons per year, and their production capacity accounts for more than 60% of the total domestic polyester production capacity.
Changes in CR10 production capacity concentration in the domestic polyester industry from 2018 to the present
From a specific enterprise perspective The six major polyester factories, Hengyi, Tongkun, Xinfengming, Sanfangxiang, Hengli and Shenghong, have been at the forefront of domestic production in recent years. The polyester production capacity of these six polyester factories is in The proportion of new domestic production capacity is also increasing every year. The polyester production capacity of Hengyi (not counting Yisheng) is currently close to 8 million tons/year, and will be further expanded during the year. The proportion of the production capacity of the six major polyester factories is also close to 62% of the total domestic production capacity this year. .
Changes in production capacity trends of the six major polyester factories from 2018 to the present
Changes in the proportion of new domestic production capacity of the six major polyester factories from 2018 to the present
And mainstream companies are also continuing to deepen their expansion in other areas in the upstream and downstream of the polyester industry chain. From the perspective of polyester products, Fengming’s polyester staple fiber project will be put into production within the year, and Tongkun will also have Regarding the production plan of the staple fiber industry, in terms of bottle flakes, Hengli’s bottle flakes project has been approved. In terms of BOPET, Tong Kun and Xin Fengming are about to enter this field.
In the later stage, leading companies will accelerate the production capacity layout of the polyester industry chain, which will further increase the number of leading companies in the polyester industry. The right to speak in the industry, the later market will be competition between mainstream factories.</p
