With the rise of China’s refining and chemical integration projects in the past two years, the proportion of upstream and downstream supporting production capacity in the PTA industry has increased. In 2020, the proportion of PTA supporting production capacity increased by 6 percentage points year-on-year. It can be seen that domestic PTA companies have made some progress in making up for their shortcomings and extending the industrial chain upstream. At present, the PTA industry has once again entered the path of large-scale development.
A subsidiary of Tongkun Group used INVISTA’s latest P8 technology to build its two PTA production units. The first PTA unit It is expected to start driving in April 2022
According to INVISTA news, INVISTA Textile (UK) Co., Ltd., INVISTA’s technology licensing department-Invista Advanced Technologies (IPT) and Jiangsu Jiatong Energy Co., Ltd. signed a technical agreement, authorizing Jiatong to use INVISTA’s latest purified terephthalic acid (PTA) process technology to build two sets of PTA production units. Jiangsu Jiatong Energy Co., Ltd. is one of the subsidiaries of Tongkun Group.
The picture shows the Jiatong project kick-off meeting
Two sets of PTA production equipment are located in Nantong City, Jiangsu Province, China Rudong County, all adopt INVISTA’s dual-line design and P8++PTA technology. Building on the proven P8 technology, P8++ technology will set new industry benchmarks for variable costs, investment productivity and environmental performance.
Invista and Tongkun Group have cooperated in the construction of PTA projects for more than 10 years. INVISTA’s first P7 and first P8 units were constructed, commissioned and operated at Jiaxing Petrochemical, another subsidiary of Tongkun Group. Thanks to the successful cooperation between the two parties, Tongkun once again chose INVISTA’s PTA technology as the technology licensee for the construction of PTA equipment in the Jiatong project.
Mr. Adam Sackett, Vice President of INVISTA’s Advanced Technology PTA Business, said: “We are very proud that Tongkun Group has once again chosen INVISTA’s industry-leading PTA technology. INVISTA is the leader in PTA “Technological innovation has a long history, and we look forward to a new chapter in technology and cooperation between the two parties.”
Jiatong, INVISTA and Zhongding Group (detailed design) will launch a new chapter in 2020 The project kick-off meeting was successfully held on August 15th. Jiatong Energy’s first PTA unit is expected to be put into operation in April 2022.
The Xinfengming PTA integrated project laid the foundation in Zhejiang and is expected to be put into production in the first half of 2021
Xin Fengming, who is located in Tongxiang City with Tongkun Co., Ltd., is also planning to expand its territory. Recently, we learned from the Zhejiang Pinghu Municipal Government website that on the morning of September 8, Jiaxing City’s concentrated start and completion of major projects in the third quarter of 2020 and the groundbreaking ceremony for the Dushan Energy New Materials Integration Project were held.
It is reported that the Dushan Energy New Materials Integration Project is the first tens of billions project signed by Pinghu this year. In October 2019, the first phase of the Dushan Energy project was successfully put into operation. With the start of the second phase of the PTA project early next month, the PTA production capacity of 5 million tons will be successfully achieved.
The third phase of the “Dushan Energy New Materials Integration Project” has a total investment of 13 billion yuan, a fixed asset investment of 12.55 billion yuan, an additional land area of 1,040 acres, a new PTA device, polyester Chemical fiber integrated equipment, product warehouses, comprehensive buildings and other buildings (structures) total 712,188.9 square meters. One set of PTA production equipment (1×4 million tons/year) and 7 sets of polyester production equipment (7×300,000 tons/year) have been built. year), equipped with 96 spinning production lines. At present, the project energy assessment and environmental assessment have been approved. Among them, the polyester and spinning buildings of the two units in the first phase have completed 60% of the total design. The core equipment has been ordered and is expected to be put into operation in the first half of 2021.
The core of the new round of PTA production: simultaneous expansion backed by refining and chemical integration
In 2020, three new PTA units with a total capacity of 6.2 million tons/year have been put into operation, and Dushan Energy’s 2.2 million tons/year will also be put into operation in the fourth quarter. According to the ICIS supply and demand database, PTA’s effective production capacity growth rate will be as high as 17% this year, and PTA will continue to maintain rapid capacity expansion in the next two years. Such large-scale centralized capacity expansion seems familiar in the history of the PTA industry. However, the core of the previous round of industry expansion was mainly to achieve scale effects and increase industry concentration, while the core of the new round of PTA production is to rely on the simultaneous expansion of refining and chemical integration.
In the future, there will be a significant trend for polyester companies to jointly embrace upstream resources, and the strong alliance highlights the Matthew Effect. The upstream refining and chemical integration project is a capital-intensive industry. At present, Zhejiang Petrochemical’s refining and chemical integration project is jointly funded and constructed by two major polyester companies. It is expected that in the future, there may be more cases of strong alliances and interest bundling.
At the end of May this year, Hengyi Petrochemical invested in Tongkun shares, and both companies have projects in Qinzhou, Guangxi. Among them, Tongkun Group plans to build a 2.8 million tons/year aromatics and 5 million tons/year PTA project. Through this kind of cooperation, the relationship between polyester companies will change from competition to joint cooperation. From 2014 to 2017, after the concentration of the PTA industry increased, although leading companies had mutually agreed on output, they still faced a “prisoner’s dilemma”, resulting in differences in actual output.
At present, my country’s chemical fiber industry is full of competition and dominates the world. Xiaoshan is in the southThe two heroes are Rongsheng and Hengyi, the two heroes of Shengze are Hengli and Shenghong in the north, and the two heroes of Tongxiang are Xinfengming and Tongkun in the middle. Once they become a community of interests in the future, their respective production capacity scheduling plans will be more effective. If implemented effectively, the market oligopoly model will be clearer and the voice of leading enterprises will be more significant. </p
