2020 is a year of coexisting crises for textile giants!
On the evening of December 3, Tongkun Co., Ltd. announced:
The company signed an investment agreement with the Shuyang Economic and Technological Development Zone Management Committee, and the details of the project The contents include that the total investment of the cooperation projects between the two parties including tax is about 15 billion yuan, and the construction of an annual output of 2.4 million tons of filament (short fiber), 500 texturing machines, 10,000 looms, supporting dyeing and finishing and a public thermal energy center project. The products of this project are mainly new functional fibers, high-end textiles and dyeing and finishing fabrics.
Tongkun Co., Ltd., known as the “Wal-Mart among polyester filament companies”, will use this operation to transform the industry Chain integration is further promoted.
As a leading domestic chemical fiber company, this year’s semi-annual report shows that the company has an annual production capacity of 4.2 million tons of PTA, a polymerization capacity of approximately 6.4 million tons/year, and a polyester filament production capacity of approximately 6.9 million tons per year. It has ranked first in output and sales in domestic and international markets for more than ten consecutive years. The domestic market share of polyester filament exceeds 18% and the global share is approximately 12%. In other words, the newly built 2.4 million tons of filament yarn project is equivalent to 34.78% of the existing production capacity.
It is not just Tongkun Group that is accelerating the layout of the entire industry chain. Hengli Group has also been increasing investment in weaving production capacity in recent years. In the first half of the year, Hengli Group invested a total of 43 billion yuan in southwest and northern Jiangsu to build new projects in Hengli (Suqian) Industrial Park and Hengli (Luzhou) Industrial Park.
Hengli (Suqian) Industrial Park has a total investment of 23 billion yuan and will build projects with an annual output of 1.2 million tons of differentiated super-simulated functional chemical fibers and an annual output of 1 billion meters of functional fabrics. , produces differentiated super-simulated functional polyester filaments and high-end fabrics. The first phase of the project is planned to be completed and put into operation by the end of this year. After full operation, it can achieve an annual output value of 30 billion yuan and provide employment for 15,000 people.
Hengli (Luzhou) Industrial Park is the sixth largest production base of Hengli Group, with a total investment of 20 billion yuan and an area of 5,000 acres. Among them: the textile project covers an area of 2,480 acres, with an investment of 8.2 billion yuan, and will be built with an annual output of 1 billion meters of high-end textile fabrics; the spinning project covers an area of 2,520 acres, with an investment of 11.8 billion yuan, and will be built with an annual output of 1.2 million tons of intelligent polyester Spinning project.
The entire project is planned to be completed and put into operation by the end of 2021. After the project is fully put into operation, it is expected to achieve an annual operating income of 20-30 billion yuan, provide employment for 15,000 people, and become a new polyester material and Textile Manufacturing Center.
01 Extend vertically to reduce production costs
Under the epidemic , in fact, this year there has been great uncertainty in the supply and demand of all links in the chemical fiber textile industry chain. In this environment, industry leaders still stick to the industry and continue to optimize the company’s product structure and enhance the company’s core competitiveness through the advancement of textile projects.
The most important reason is still the integration of the industry chain to form the integration of spinning, weaving, dyeing and finishing, which ensures a stable supply of raw materials for the industry chain, reduces production costs, and expands production. capabilities to enhance the company’s industry status and market competitiveness. In addition, most of the current industry leaders are listed companies. With their strong financial strength, the products of these projects are new functional fibers, high-end textiles and dyeing and finishing fabrics, which have stronger market competitiveness than conventional single products.
02 Expanding demand, prices are easy to rise but hard to fall
As we all know, the polyester filament market has been in a relatively weak situation since this year, and many specifications Product prices are only 40% or 30% off the same period last year. Market production and sales have been hovering at a low level. Even if downstream companies focus on replenishing goods, production and sales only exceed 100 for a few days, sometimes even for “one-day trips”. The main reason It’s an imbalance between supply and demand.
Due to the obvious decline in end market demand, the overall operating rate of the weaving market this year has been low, and the demand for raw polyester filament has also been greatly reduced. The feedback from the demand side has also resulted in prices. The price of polyester filament has been weak and volatile. As of December 3, polyester FDY 150D was quoted at 5,350 yuan tons, polyester DTY 150D was quoted at 6,850 yuan tons, and polyester POY 150D was quoted at 5,075 yuan tons. Compared with the same period last year, prices fell by 34.60%, 25.55%, and 36.65% respectively. .
With the completion of the project, the new looms will inevitably increase the demand for raw materials, which will also ease the current situation of raw material manufacturers. Inventory pressure due to supply and demand imbalance. The self-produced and self-sold model has provided certain support for prices that were already hovering at the bottom, and the declining market may be alleviated.
03 vaccine is good, and the industry may bottom out and rebound next year
If you want to be a hero in troubled times, you must show the courage you deserve. This year’s economic environment has caused many textile people to lose confidence. There are even reports of early closure of factories and holidays for the New Year. However, for some companies, looking for “opportunities” amid “crisis” is also the general trend. For next year�We don’t need to be too pessimistic about market conditions. In the medium to long term, it is inevitable that the economy will return to normal development after the epidemic. There is also good news coming out of the vaccine market:
It can be seen that the power of the “black swan” that has the greatest impact on the global economy will gradually decrease next year, and people will resume normal economic activities. At present, after a long period of cautious purchasing cycle in foreign countries, retaliatory consumption is more likely, which will also drive enthusiasm for purchasing fabrics. Market orders may slowly recover. For textile companies that have planned and put into production in advance, We will undoubtedly welcome a new opportunity.
However, it is worth noting that for the current weaving market, a large number of looms have been put into production. Whether the downstream clothing and home textile industries can successfully digest this part of the new production capacity is undoubtedly a solution. The question of whether the market can compete healthily. For ordinary small and medium-sized enterprises, naturally they cannot compete with the above-mentioned enterprises in terms of cost advantages. Therefore, these enterprises must accelerate their transformation and upgrading, dislocate competition, and focus on the research and development of their own advantageous products. Only in this way can they remain invincible in the market competition of survival of the fittest!
</p
