What Is The Powerful "Engine" Driving China'S Chemical Fiber Industry To Achieve A New Round Of Development

The outbreak of new crown pneumonia has not stopped because of the arrival of the new year and is still spreading. In the "haze" of global economic damage, China's economy is the first to achieve recovery. In this context, the overall operation pressure of China's chemical fiber industry is still obvious, but the recovery speed is accelerated.

A prominent performance is that the pace of investment expansion of large polyester leading enterprises, as a typical representative, did not stop because of the epidemic, but chose to go against the trend and continue to carry out strategic layout.

Moreover, more and more obvious signs show that the enthusiasm of chemical fiber enterprises to invest in the western region is constantly rising. These have become the powerful "engine" for the recovery of chemical fiber industry. From Ningxia to Xining, from Chongqing to Xinjiang, many chemical fiber enterprises have set foot on the vast western world.

In the spandex and polyamide industries, Chongqing has become the strategic focus of Huafeng Group. In October 2020, Chongqing Huafeng announced the completion of its spandex phase III project and the commencement of nylon 66 integration project and spandex phase IV project. Chongqing has become an important production base and a new growth point of Huafeng Group in recent years.

In the first half of 2020, despite the impact of the epidemic situation, Huafeng Chongqing spandex Co., Ltd. achieved a revenue of 1.262 billion yuan and a net profit of 206 million yuan. With the completion of the third phase project, the annual production capacity of spandex in Chongqing Huafeng has reached 185000 tons.

The newly started nylon 66 integration project is a key strategic project of Huafeng Group during the "14th five year plan". After completion, it is expected to achieve an annual output value of 12 billion yuan, profits and taxes of 1.5 billion yuan, and will create 1500 new jobs. It will also provide strong support for Chongqing Huafeng to achieve the goal of annual output value of more than 30 billion yuan.

In particular, it is worth noting that in recent two or three years, many "big guy" polyester enterprises have begun to take the "westward" step. From Qinzhou, Guangxi to Xinjiang, polyester "big man" expansion figure has been left.

Tongkun has successively invested in Guangxi and Xinjiang.

In August 2019, Qinzhou Municipal Government of Guangxi and Tongkun Group signed the investment contract of Tongkun Qinzhou Beibu Gulf Green Petrochemical integrated industrial base project in Nanning. Tongkun group will invest about 51 billion yuan to build an integrated project with an annual output of 2.8 million tons of aromatics and 5 million tons of PTA in Qinzhou. In December 2019, the first phase of the project with an annual output of 600000 tons of styrene was started in the Sandun area of Qinzhou port. After the integrated project is put into operation, the annual output value will be about 65 billion yuan.

In November 2020, the signing ceremony of alar Tongkun Textile Industrial Park project was held in Alar City, the first division of Xinjiang production and Construction Corps. The industrial park is planned to invest 11 billion yuan, and will build supporting projects with an annual output of 1 million tons of fiber, printing and dyeing, weaving, thermal power and other supporting projects. Alar is located in the core area of the Silk Road Economic Belt, and is an important node connecting China with the Central Asian economic zone.

Hengyi is also located in Qinzhou, Guangxi. In July 2019, Hengyi and Qinzhou Municipal Government signed an investment cooperation agreement on high-end green chemical fiber integration project in Nanning. According to the agreement, Hengyi will build the "belt and road" cross regional cooperation and high-end green chemical fiber integration project oriented to ASEAN market in Qinzhou, including the industrial integration project of 1.2 million tons of caprolactam polyamide industry with an annual output of 1.2 million tons. The total investment of the project is about 45 billion yuan. After the project is completed as a whole, the annual output value is expected to be about 50 billion yuan and the tax revenue is about 4.5 billion yuan.

Even foreign enterprises are "eyeing" China's West. On December 29, 2020, Korea Xiaoxing group announced that it would build a new spandex project with an annual output of 360000 tons in Ningdong energy and chemical industry base of Ningxia. In fact, Ningxia Ningdong energy and chemical industry base has formed a certain spandex agglomeration effect before.

Here is one of China's leading Spandex Enterprises, Taihe new materials in Yantai outside another spandex production base. Ningxia Ningdong Taihe new materials Co., Ltd., established in December 2017, mainly produces and sells spandex, which is located in Ningxia Ningdong energy and chemical industry base. In the first half of 2020, the company's revenue was 285 million yuan and the net profit was 5.4847 million yuan.

According to relevant statistics, by the end of 2020, the total production capacity of spandex in China will be about 870000 tons. In the next few years, with the completion and commissioning of the new spandex project of Xiaoxing group in Ningxia, the spandex industry agglomeration effect of Ningxia Ningdong chemical base will be further highlighted, and it will become the leading spandex production base in China.

From the actual situation, the chemical fiber industry in the eastern and southeast coastal areas of China has experienced the rapid development of reform and opening up for more than 40 years. At this stage, it is more and more faced with a series of challenges, such as the difficulty of labor, the high cost of water, electricity and other energy. And the vast central and western regions in land, tax, energy, electricity prices, investment policies and other aspects, have a certain degree of preference and preference for the implementation of major project investment, and the labor cost is also lower. Moreover, the selection of some important port cities in the western region is also conducive to the further layout of large polyester enterprises along the "belt and road" market.

It can be predicted that with the opening of the 14th five year plan, more leading chemical fiber enterprises will be attracted to invest in new projects and industrial bases in the next five years or even in the next 10 years, which will become a powerful "engine" to drive China's chemical fiber industry to realize a new round of development.

At the same time, with the implementation and commissioning of one major petrochemical and chemical fiber projects one after another, they will also become the "ballast" and "booster" for the rapid economic development of the western region.