Compared with traditional chemicals, new materials such as PC, DMC, ABS, PBS, and PBAT have higher added value; at the same time, the implementation of the domestic “dual carbon” strategy, the transformation and upgrading of the manufacturing industry, and changes in the consumption structure will promote The rapid development of domestic renewable energy, new energy vehicles, 5G technology, consumer electronics, integrated circuits and other industries will inevitably lead to an increase in the demand for related new chemical materials.
Polyester giant with a market value of 100 billion
Make a big move into the fields of new materials and new energy
The domestic petrochemical leader Dongfang Shenghong has made a big move into the fields of new materials and new energy to tap into the “double carbon” market, and its performance has exploded! From printing and dyeing to chemical fiber to petroleum refining, Dongfang Shenghong has continued to expand through a bottom-up entire industry chain and has grown into an A-share petrochemical giant with a market value of nearly 100 billion.
On the evening of January 5, Oriental Shenghong released a performance forecast, predicting a substantial profit of 4.1 billion to 5 billion yuan in 2021, an increase of 435% to 552.44% over the same period last year (after retrospective adjustment). The substantial growth in performance indicates that Dongfang Shenghong’s major asset restructuring has come to a successful conclusion.
On December 23, 2021, Dongfang Shenghong announced that the company plans to acquire Jiangsu Sierbon Petrochemical Co., Ltd. (referred to as “Serbon”) under the same parent company Shenghong Group for 14.36 billion yuan through the issuance of shares and payment of cash. “) 100% equity and raising capital of no more than 4.089 billion yuan was unconditionally approved by the Mergers, Acquisitions and Reorganization Committee of the China Securities Regulatory Commission. Sierbon’s injection into Dongfang Shenghong is also regarded as an important measure for Shenghong Group to accelerate its transformation in the fields of new materials and new energy and to tap into the “dual carbon” market. The editor understands that Shenghong Group will accelerate its layout in the three major directions of new energy, high-performance new materials, and low-carbon green industries in the future. As the most important subsidiary and listing platform of Shenghong Group, Oriental Shenghong will undoubtedly be The main force carrying the implementation of this strategy.
“Through the acquisition of Sierbon, Dongfang Shenghong will directly enter the field of photovoltaic materials EVA, and the company’s business ‘new’ structure gradually emerges. According to the plan, after the acquisition of Sierbon is completed, Dongfang Shenghong will not only have the ability to ‘from a drop of oil to a rod Silk’s full industrial chain layout will also enter the fields of new materials and new energy, forming an industrial matrix of ‘refining + polyester + new materials’.
In addition to Dongfang Shenghong, since the second half of 2020, Hengli has introduced a lithium battery separator production line, and Rongsheng Zhejiang Petrochemical has put into operation an EVA device with an annual output of 300,000 tons. The big guys in the polyester industry have also laid out their plans for the new energy market, hoping to enrich the New business formats and new elements will seize more market share.
Asia’s richest man can’t sit still!
Invest 480 billion to plan the transformation of new energy
Of course, everyone wants a piece of the “money tree”. While the domestic polyester leader has entered a new track and gained huge profits, foreign petrochemical giants cannot sit still! Last Thursday, local time, Reliance Industries, controlled by Asia’s richest man Mukesh Ambani, issued an announcement announcing that it had signed an investment agreement worth nearly 5.95 trillion Indian rupees (approximately US$81 billion) with the Gujarat government, of which absolutely Most of the investment will be used to build green energy projects to achieve the petrochemical giant’s 2035 carbon neutrality vision.
According to the announcement, 5 trillion rupees (about 76 billion U.S. dollars, 482.7 billion yuan) will be used to invest in the construction of 100 gigawatts of renewable energy projects and a green hydrogen network. In addition, 600 billion rupees will be used to build and produce solar energy. The entire investment cycle for the factories for plates, hydrogen electrolyzers, fuel cells and energy storage batteries is 15 years. The remaining investment is mainly used to upgrade retail network services, including upgrading and building new 5G communication projects.
According to reports, Reliance Industries has begun the process of searching for land for new energy projects and has requested 450,000 acres of land from the government.
It is worth mentioning that although this announcement is just a memorandum, it does not mean that every project can be implemented. However, compared with Ambani’s green transformation investment commitment of “US$10 billion over three years” in June last year, the steps are still a lot bigger. Considering that 60% of Reliance Industries’ current revenue comes from petroleum refining and chemical business, it does require great determination to achieve the company’s 2035 operational carbon neutrality goal.
In addition to Ambani, “Asia’s second richest man” Gautam Adani also called out the goal of investing US$70 billion in the “green value chain” by 2030 at the end of last year, and has reached an agreement with South Korea’s Posco Steel , plans to invest US$5 billion to build a “green steel” plant in Gujarat.
According to the Bloomberg Billionaires Real-time Index, Ambani currently has a net worth of US$96.8 billion, ranking 12th in the world, while Adani ranks 14th with US$85.6 billion.
Facing the complex and ever-changing market environment, “improving upstream and strengthening downstream” has become an inevitable strategic choice for petrochemical leaders. On the one hand, by enlarging and improving the layout of the midstream and upstream industries, we will further expand the business support and development barriers of high-end chemical raw materials, making the foundation for the development of the entire industry chain wider and wider, and leaving space for the expansion of downstream industries. With the gradual implementation of the “carbon neutrality” policy, the new energy market still has vast space and demand is still a blue ocean. The intervention of giants will help build the petrochemical leader to reach new heights, and at the same time…��It may also bring more turbulence to the market.
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