Huafeng Chemical announced that with the rapid development and maturation of China’s spandex market, spandex application technology continues to develop, the scope of application continues to expand, and demand continues to grow steadily. In particular, the demand for differentiated spandex products has increased significantly, and the spandex industry is ushering in a new era. In order to consolidate and expand the overall competitive advantage and further optimize the company’s product structure, the company starts from the needs of operation and business development, adheres to the industrial development strategy of strengthening the main business and moderately diversifying, and seeks development through innovation and strength. To create benefits, closely follow the pulse of industry development, with the goal of building an internationally leading high-tech fiber and new material manufacturing base and becoming a world-class enterprise, the company, after careful research, proposed that its holding subsidiary Huafeng Chongqing Spandex Co., Ltd. (“Chongqing Spandex ”) invests in the construction of a 300,000 tons/year differentiated spandex project.
Project name: 300,000 tons/year differentiated spandex project; the total investment is expected to be 4.36 billion yuan. The source of funds is bank loans and self-raising. The final investment amount and construction period are subject to the actual situation after the project is implemented. The total investment is 4.36 billion yuan, the average annual sales (including tax) are 8.84226 billion yuan, and the static investment recovery period (after tax) is 5.11 years (excluding the construction period).
After the project is put into production, the company’s overall scale will be further expanded, the proportion of differentiated products will be further increased, and the market share and influence will be significantly increased. The new equipment, new processes, and new technologies used in the new project will further reduce the company’s overall production costs and bring relatively generous profit returns to the company.
Basic information on the investment project
1. Project name: 300,000 tons/year differentiated spandex project
2. Project investment and construction unit: Huafeng Chongqing Spandex Co., Ltd.
3. Project Investment estimate and funding sources: The total investment is estimated to be 4.36 billion yuan, and the funding sources are bank loans
and self-raising. The final investment amount and construction period are subject to the actual situation after the project is implemented.
4. Project construction period:
Estimated to be 72 months, implemented in three phases.
The first phase: 50,000 tons/year, the construction period is expected to be 24 months
The second phase: 150,000 tons/year, the construction period is expected to be 24 months
The third phase: 100,000 tons/year, the construction period is expected It is expected that the implementation progress of the 24-month project will be adjusted in a timely manner based on market demand, operating conditions and the comprehensive demonstration of the board of directors, and will be disclosed in accordance with relevant laws and regulations.
5. Process technology: Adopt large-capacity continuous polymerization, dry spinning and other process routes, all using automated,
intelligent, efficient and energy-saving, high-density multi-head spinning production lines.
6. Project location: Baitao Chemical Park, Fuling District, Chongqing. </p
