On February 10, Xinfengming announced that the company’s wholly-owned subsidiary Zhejiang Dushan Energy Co., Ltd. (hereinafter referred to as “Dushan Energy”) invested and constructed an annual production of 300,000 tons of intelligent, functionally differentiated polyester fiber. The project has reached the conditions for production.
Dushan Energy’s annual production of 300,000 tons of intelligent, functionally differentiated polyester fiber project was officially put into production on February 10, 2022. This project adopts China Kunlun Engineering Co., Ltd.’s advanced low-temperature, refined and flexible five-kettle melt direct spinning process technology with independent intellectual property rights, introduces the world’s advanced Barmag high-speed FDY winding machine, and is equipped with world-class Intelligent manufacturing facilities such as automatic winding, automatic packaging, and three-dimensional warehouses use the company’s independently developed “5G+ Industrial Internet Platform” to create an advanced, demonstrative, and leading smart factory in the industry.
This project relies on the first and second phases of the Dushan Energy PTA project that has been put into operation. It can not only transport raw materials locally to reduce logistics costs; it can also take advantage of the waste heat of the PTA device to generate electricity and reverse power supply for self-use to reduce production costs; in addition, it can combine regional public utility The overall project layout can efficiently utilize public media, stabilize normal production and reduce costs at the same time.
According to the announcement, the commissioning of the project can better integrate and improve the company’s resource allocation efficiency and effectiveness, and create a better professional service business model. It not only consolidates the company’s polyester fiber foundation in the Pinghu area, but also greatly improves the company’s The market competitiveness and industry influence have taken a solid step towards the company’s “two million tons” development planning goal during the “14th Five-Year Plan” period.
Xinfengming opens polyester and PTA
“Two 10 million tons” construction target expansion
Maintain a filament production capacity of approximately 600,000 tons per year!
In recent years, benefiting from the increasing concentration of the industry, Xinfengming has developed rapidly in the field of polyester filament and is known as the leading enterprise with the strongest growth potential. 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. Last year, it was the first time to deploy new production capacity outside the province. On May 22, 2021, the Xinfengming Xinyi Industrial Base polyester project started construction. With a total investment of 18 billion, the project will build 9 sets of internationally leading melt direct spinning and straight-drawn film production lines, with a capacity of 2.7 million tons of differentiated fibers. It is planned to be completed and put into operation at the end of October 2022. After all are completed and put into operation, the annual sales revenue can be Reaching 26 billion yuan, with profits and taxes of 2 billion yuan!
Polyester filament production capacity continues to expand, and there is sufficient growth momentum in the future. Polyester filament is the main source of Xinfengming’s operating income and gross profit. At present, Xinfengming’s domestic market share of polyester filament is close to 10%, and it is one of the largest polyester filament manufacturing companies in China.
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. The first phase of Dushan Energy’s 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.
With the smooth commissioning of Xinfengming’s two phases of 2.2 million tons PTA projects each, Xinfengming has extended 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 predicts that it will maintain a filament production capacity of about 600,000 tons per year in the future, and combined with its production status, will promote the planning and construction of a total of 4 million tons of PTA production capacity in the next three to five years, and ultimately realize the “polyester and PTA” “Two 10 million tons” construction goals.
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