At present, the polyester industry is going through an ups and downs journey, which is both bitter and sweet. The bitter thing is that in recent years, a few polyester factories are still losing money and are on the verge of being eliminated. The sweet thing is that the polyester industry has been in a state of decline for a long time. After the storm, 2017 finally ushered in the dawn. The restart of production capacity of bankrupt leading companies and the improvement of product profits are all indicating that the industry is developing favorably.
As far as the market is concerned, after years of ups and downs, the entire polyester industry is operating cautiously. Those that have been nearly eliminated will become a thing of the past. After this storm, I think the remaining polyester factories will Take the lead, “the one who remains is king”!
Today, we are going to take stock of these five leading polyester companies that existed like giants in the beginning and ended up bankrupt. We hope that while lamenting the cruelty of the market, we also remind the market to respect the industry!
Cifu Group: Shaoxing’s largest chemical fiber taxpayer that year, ended up with a bank debt of 5 billion yuan
Before 2012, Cifu Group was shrouded in various auras and became a benchmark enterprise in the local area that bravely broke into the trend. According to industrial and commercial information, Cifu Group was formerly Shaoxing County No. 1 Polyester Factory established in 1986. Its shareholders are Shaoxing County (now Keqiao District) Ma’an Town Collective Asset Management Company, Ma’an Town Economic and Industrial Corporation, and Shaojin Chemical Fiber Group The company has a registered capital of 108 million yuan. At its peak, the annual sales revenue exceeded 10 billion yuan, ranking high among the major taxpayers in Keqiao District and even Shaoxing City.
According to public media reports, in 2003, the production capacity of the chemical fiber industry was approaching saturation. Under the leadership of Zhao Zhangfu, Cifu Group resolutely invested 1.7 billion yuan in research and development of polyester film direct film drawing technology that DuPont had failed to develop, and in May 2005 Successful research and development last month reduced the energy consumption of the new technology by 50% and the cost per ton dropped by 2,000 yuan.
Its website information also states that since 2006, the company’s film production and sales have ranked first in the same industry nationwide, and its chemical fiber production and sales have ranked seventh in the same industry nationwide. In 2007 and 2009, it ranked 39 among the top 100 enterprises in Zhejiang and among the top 100 manufacturing industries. 73 people, playing an important role in the local industry.
The leader, Zhao Zhangfu, has frequently appeared on various rich lists since 2003. In 2003, Zhao Zhangfu ranked 174th on the list of China’s 400 richest people with a wealth of 590 million yuan. Later, in 2005, he ranked 157th on the Hurun Rich List with a wealth of 1.1 billion yuan. From 2006 to 2010, he appeared on the Hurun Rich List for five consecutive years, but most of his rankings were after 375. Only in 2010, he ranked 167th with a wealth of 1.2 billion yuan.
It was precisely since 2003 that Cifu Group expanded outwards, spending billions of yuan to invest in multiple projects in Henan, Yunnan, Guangdong, Jiangsu and other places. Its business also extended from chemical fiber films to medicine, real estate, etc. field. Due to blind expansion, most of the projects invested by Cifu Group in Jiangsu, Yunnan, Guangdong, Henan and other places failed. In Jiangsu Eurasia, which was established in 2009, the investment was close to 1.7 billion yuan, but the project did not achieve the expected results. Real estate projects in Henan, Yunnan and other places also ended in failure. In the end, the accumulated bank liabilities totaled more than 5 billion yuan. It eventually went bankrupt at the end of 2014.
Far East Petrochemical: a world-class influential factory and one of the top five PTA manufacturers in China
The glory of Far East Petrochemical in those days cannot be described in words. To put it simply, Zhejiang Far East Petrochemical Group is a comprehensive large-scale enterprise group integrating polyester, polyester spinning, polyester staple fiber, texturing, printing and dyeing, real estate, and thermoelectricity. At that time, Far East Petrochemical was one of the top five PTA manufacturers in China. One, it has become a factory with world-class influence, with 4 sets of PTA production equipment, with a total production capacity of 3.2 million tons; a polymerization capacity of 800,000 tons, and supporting melt direct spinning differentiated filament and staple fiber production capabilities. There are 280,000 tons of textured DTY yarn and 120 million meters of external printing and dyeing fabrics annually.
During the financial crisis in 2008, the original Hualian Sanxin was in trouble due to poor management. Subsequently, Zhejiang Far East Chemical Fiber Group, Binhai Industrial Zone Investment and Development Co., Ltd. and Shenzhen Hualian Holdings jointly injected capital to reorganize and establish Far East Petrochemical.
On March 17, 2015, Zhengzhou Commodity Exchange learned that after research, the inspection-free delivery brand qualification of Shaoxing Far East Petrochemical Futures PTA (PTA is the lower-end product of petroleum) was suspended. On March 18, 2015, the Keqiao District Government of Shaoxing City, Zhejiang Province announced that Shaoxing Far East Petrochemical plans to reorganize due to overcapacity.
In the past year or so, Far East Petrochemical’s three auctions on Taobao Judicial Auction Network all ended in failure, and Far East Petrochemical has yet to find a “next home”. In 2016, Far East Petrochemical finally successfully introduced the well-known enterprise Reignwood Group to take over the business. However, due to some reasons, the production capacity equipment has not been able to restart as expected.
Longteng Chemical Fiber: The giant in fine-denier FDY production capacity fell apart overnight
When it comes to who ranked first in fine denier FDY at that time, Longteng Chemical Fiber definitely ranked first. In fact, Longteng Chemical Fiber was also very strong back then. Longteng Chemical Fiber was established in August 2000. It introduced a total of 16 internationally advanced Japanese Murata, Toray and TMT high-speed winding machine production lines and completed the project in just two years. Completed the installation, commissioning and normal production of two sets of melt direct spinning equipment. It has an annual production capacity of 50,000 tons of FDY yarn. In August 2004, Zhejiang Longteng Technology Development Co., Ltd. was established, introducing 196 advanced German Barmag high-speed winding machines to produce 50,000 tons of fine-denier FDY yarn, becoming one of the largest chemical fiber companies in China.
It was such a leading company that stopped operating in August 2015 after experiencing bank loan collection, power supply bureau forcibly pulling power, and warehouses being emptied overnight in 2015.
Nowadays, Hangzhou Heguang Investment Management Partnership (Limited Partnership), the M&A fund in which Hengyi Group participates as a limited partner, has established a project company, Jiaxing Yipeng Chemical Fiber Co., Ltd. The project company won Zhejiang Longteng Technology through bidding at a transaction price of 722 million The relevant assets of the Development Co., Ltd. include land use rights, factories, auxiliary buildings and machinery and equipment located at No. 1288 Hongye Road, Xiuzhou Industrial Zone, Jiaxing City. According to reports, the device will be restarted on the 18th of this month.
Zhejiang Hongjian: Once one of the top 500 private enterprises in China and a giant enterprise in the chemical fiber industry
Since 2012, due to factors such as blind expansion of enterprises and tightening of money, many enterprises in Xiaoshan have unfortunately collapsed due to guarantee crises, including Hongjian. Hongjian has not been listed on the market, and its influence is not necessarily that of Far East Petrochemical, but in the field of chemical fiber, it is a giant enterprise. It is understood that Hongjian Group was founded in 1999. After more than ten years of rolling development, the group’s total assets have reached 3 billion yuan, with a total area of more than 500,000 square meters. The industry involves two fields: chemical fiber, energy conservation and environmental protection. It has It has seven wholly-owned subsidiaries, including Hangzhou Hongjian Polyester Fiber Co., Ltd., Hangzhou Hongshan Chemical Fiber Co., Ltd., Huzhou Hongjian Polymer Co., Ltd., etc.
At that time, Hongjian Group had ranked among the “Top 50 Chinese Chemical Fiber Enterprises” and the “Honghua” trademark was rated as “China’s Famous Trademark”. Over the years, the group has always maintained its corporate competitive status among the “Top 500 Chinese Private Enterprises”, “Top 500 Chinese Manufacturing Enterprises”, “Top 500 Comprehensive Competitiveness of China’s Large Enterprise Groups” and “China’s Top 1,000 Largest Enterprise Groups”.
In 2015, the Hongjian factory suspended production on the 22nd, and employees’ wages were not paid for three months. The incident fermented and caused a stir. Nowadays, the industrial merger and acquisition fund jointly established by Zhejiang Hengyi Group and Zhejiang Capital has spent 600 million yuan to acquire the land, factories and equipment of the former chemical fiber giant Hongjian Group. It will restart on the 11th of this month.
Minghui Chemical Fiber: Taicang’s “Ten Billion Legion” seed player, with first-class German equipment
In September 2015, the Minghui chemical fiber plant located in Shaxi New Materials Industrial Park, Taicang City, Jiangsu Province suddenly and unexpectedly stopped. The product involved was POY. In early October 2015, Minghui Chemical Fiber gave its employees 10 days of leave and defaulted on wages. According to netizens, Minghui Chemical Fiber had already entered into the acquisition process last year, and its employees even made trouble at that time. On November 15, 2015, Minghui Chemical Fiber posted an announcement, and the rumors of “Minghui’s bankruptcy” were finally confirmed…
It is understood that Minghui Chemical Fiber was jointly invested and established by 10 chemical fiber companies including Suzhou Mingjun Chemical Fiber Weaving Co., Ltd., with a total investment of 4.5 billion yuan and a total area of 400 acres. It is currently the largest chemical fiber industry project in Taicang and was once considered Known as the seed player of the “Ten Billion Legion” in the Taicang sector, it is determined to build a “domestic first-class chemical fiber industry group”.
According to relevant analysis, the main reason for the bankruptcy of Minghui Chemical Fiber was excessive loans. From 2012 to 2015, it successively borrowed 2 billion from banks. The debt was too high. In addition, POY products entered the era of low profits, which finally led to the break of the capital chain.
Afterword: The overlord takes off his armor and returns to the fields, and the one who is left behind is the king
Looking back at these once glorious chemical fiber giants, although they have shed their dominance, looking back, their original vision is still very beautiful, but the reality is that the overcapacity problem in the polyester industry is still serious, so that manufacturers are facing increasingly fierce competition. With the competition, the industry’s “cyclical trough” appears, and companies have to go through hard times. But this is not entirely bad news. The upgrade process must be based on a cruel shuffle. “There are only bankrupt companies, not bankrupt industries.” I believe that after many pains, companies will find a suitable path for development.
The ambitions at the time were huge, but now people can’t help but sigh… This is the ongoing reshuffle. A friend who has been in the industry for many years said: Since 2015, all walks of life have entered an era where the leftover is king. . This is the best era given by God. Regarding the polyester market, all the hardships will be over in 18 years at the latest. Patience is a survival virtue in this market!
�There is a reshuffle in progress. A friend who has been in the industry for many years said: Since 2015, all walks of life have entered an era where the leftover is king. This is the best era given by God. Regarding the polyester market, all the hardships will be over in 18 years at the latest. Patience is a survival virtue in this market!
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