January 20th was an ordinary day in the polyester arena. However, Xinfengming, known as one of the “Tongxiang Heroes”, issued another announcement that it would spend another 18 billion to Jiangsu to “take… “Land” 3,650 acres, a new polyester weaving project is built, with a capacity of 500 texturing machines, 10,000 looms, and an annual production capacity of 2.7 million tons of polyester!
18 billion Jiangsu “acquired” 3,650 acres of land, Xinfengming Integrated project:
500 texturing machines, 10,000 looms, and 2.7 million tons of polyester production capacity!
On January 20, 2021, Xinfengming issued an announcement stating that the company and the Jiangsu Xinyi Economic Development Zone Management Committee signed the “Concerning Investment and Construction of a New Polyester Plant with an Annual Production of 2.7 million tons”. Materials Integration Project Investment Agreement.
The project plans to adopt internationally advanced large-capacity and flexible polymerization technology to build 9 sets of polymerization devices, an internationally leading melt direct spinning (Czochralski film) production line, and public works and other supporting facilities, 500 texturing machines, 10,000 looms, supporting back-end dyeing and finishing and a public thermal energy center, using purified terephthalic acid (PTA) and ethylene glycol (MEG) as the main raw materials, with a view to forming an annual output of 270 Production capacity of 10,000 tons of polyester (filament, staple fiber, film, chips, etc.). The investment amount of the project is 18 billion yuan, and the land area is about 3,650 acres (including 150 acres of supporting commercial and residential land). The project construction will follow the policy of one-time planning and phased implementation to gradually build a high-end textile industrial park.
The project construction period is expected to be 5-6 years. According to the policy of one-time planning and phased implementation, a high-end textile industrial park will be gradually formed. The first phase of the project (600,000 tons) is expected to be put into production at the end of 2022.
At the signing ceremony, Zhuang Yaozhong, President of Xinfengming Group, said: The landing in Xinyi is not only because of the local location advantages and industry Based on the foundation, we have also seen the good investment environment, potential market space and strong cultural atmosphere. Opening up a high-quality, efficient and coordinated development industrial base in Xinfengming here is not only the company’s active response to the national call, accelerating the promotion of private economy and The high-quality development of manufacturing industry strives to build an important component of the global advanced manufacturing base in the core area of the Yangtze River Delta. It also provides important support for enterprises to accelerate their subsequent development and enhance their competitiveness.
Xinfengming will take this signing as a new starting point, focusing on the main line of “high, accurate, strong and excellent”, and carefully compare the “green factory” “, smart factory, model factory” requirements, work hard, pay close attention to progress and quality, strive to start construction as soon as possible, achieve practical results as soon as possible, and create greater economic and social benefits for Xuzhou and Xinyi.
It is understood that Xinfengming is located in Zhouquan, Tongxiang, a famous chemical fiber town. Since its establishment, it has always focused on the field of civilian polyester filament. Its main business is the research and development, production and sales of civilian polyester filament, as well as the production of PTA (purified terephthalic acid), one of the main raw materials of polyester filament. Xinfengming’s polyester filament products cover multiple series and more than 400 specifications and varieties such as POY (pre-oriented yarn), FDY (fully drawn yarn) and DTY (draw textured yarn), and are mainly used in downstream clothing, home textiles and industries. Textiles and other fields. After nearly 20 years of hard work, Xinfengming has become a leading enterprise in the polyester filament industry, ranking among the top three in the domestic civilian polyester filament industry.
CITIC Securities analyst Wang Zhe previously said that in the past two years, due to the expansion cycle of PX and PTA in the upstream of the polyester industry chain, as a The polyester filament segment, a strong link in the entire industrial chain, is expected to be in a period of economic recovery in the post-epidemic era. From observation, with the successful commissioning of two phases of PTA projects of 2.2 million tons each in recent years, Xinfengming has extended the industrial chain upward to the PTA link. Although the PTA segment is currently at a low point due to the industry’s expansion cycle, the company’s PTA production capacity is the latest technology in the industry, and it is expected to form a synergistic support with downstream polyester production in the future, reducing costs by transmitting thermoelectricity to downstream polyester, and in the industry boom There is still a strong competitive advantage at the low point.
Project production progress is accelerating, targeting tens of millions of polyester enterprises
On November 17, 2020, Xinfengming’s official public account announced that the company’s production capacity of Zhongyi Chemical Fiber reached 300,000 tons/year. The first phase of the ZCP12 project (hereinafter referred to as Zhongyi ZCP12) will be officially put into operation in 2020. This means that Xinfengming becomes the third company in the industry with a polyester production capacity exceeding 5 million tons.
In addition to the Zhongyi ZCP12 project, the Zhongyi ZCP11 fiber project with an annual output of 300,000 tons has been put into production in April. The second phase of Dushan Energy’s PTA project was also put into operation in October. So far, Xinfengming has successfully completed all production capacity expansion plans for 2020. The annual production capacity of polyester filament and PTA has reached 5 million tons, successfully achieving the “two 5 million tons” goals.
The company’s public information shows that Xinfengming’s total production capacity in 2017 was 2.73 million tons, and the production capacity target of 5 million tons was achieved. , almost doubled. At the same time, the company’s total assets also increased from 11.051 billion yuan at the end of 2017 to 27.263 billion yuan in the third quarter of 2020.��More than doubled.
In the long term, it is reported that during the “14th Five-Year Plan” period, Xinfengming also formulated plans for a production capacity of 10 million tons of PTA and 10 million tons of polyester. The “three thousand” goals of production capacity and revenue of 100 billion yuan. Data show that since 2014, the combined production capacity of the top five companies has increased from 9.75 million tons to 21.4 million tons, with a five-year compound growth rate of about 17%. According to Xinfengming’s production capacity plan to increase 3.1 million tons in the next five years, its compound growth rate is only 10.13%, which is far lower than the overall growth rate of the five leading companies in the past five years.
From the perspective of the company’s production capacity needs, the steady growth of production and sales and the continued improvement of market share have also become strong support for the company’s production capacity expansion. In terms of output, between 2012 and 2019, Xinfengming’s market share increased from 4.13% to 10.32%, a cumulative increase of 6.19 percentage points, ranking first in the industry. In terms of sales volume, Xinfengming’s polyester filament market share in 2019 reached 11.12%.
In addition, in 2019, Xinfengming’s capacity utilization rate reached 89.56%, which is not only much higher than the 77% of the industry as a whole, but also ranks first among the top three camps in the industry. In the first half of last year, Xinfengming’s polyester filament production further increased to 2.1453 million tons under the epidemic environment, a year-on-year increase of 17.51%, which was 15.49 percentage points higher than the overall industry growth rate. Calculated based on the ratio of the company’s half-year production and sales to the full year, the company’s production capacity of 4.3 million tons at the beginning of the year is no longer enough to meet market demand.
Industry insiders believe that Xinfengming has clear plans for the expansion of polyester filament production capacity and sufficient growth momentum. It is expected that the company’s polyester filament sales revenue and market share will reach a high level in the future. new level. In addition, it should be noted that in order to enhance the comprehensive competitiveness of products, Xinfengming continues to develop new products and successfully developed EACOOL moisture-wicking fiber, high-tex fiber, environmentally friendly anti-wrinkle fiber, and K-warm hollow fiber Differentiated products such as thermal fiber, super soft fiber, peach skin fine fiber, etc., consolidate the dominant position in market segments.
Competition is directed towards the downstream, and only the scale of polyester leading companies can produce benefits
In 2021, the competition in the polyester arena will remain fierce, and this time their spearheads are without exception biased towards the downstream, with Xinfeng Tongkun Group, another leading polyester company also known as the “Tongxiang Double Hero”, also announced in the early stage that it will invest 15 billion yuan in Shuyang, Jiangsu Province to build an annual output of 2.4 million tons of filament (short fiber), 500 texturing machines, and 1 Tens of thousands of looms, supporting dyeing and finishing and public thermal energy center projects.
Some people may ask that chemical fiber companies have now passed the stage of striving for production capacity and scale. Now the hot words and industry hot topics are “product differentiation and product structure adjustment” , factory intelligence, Internet +” and so on. This is definitely the right general direction.
However, all polyester leaders know very well that “scale efficiency” and “comprehensive advantages” are the foundation that the polyester industry must possess. Obviously, scale can bring benefits, and leaders understand this very well.
High concentration in an industry or as small as a company does not mean weak market competition. High concentration may coexist with fierce competition, especially in the current international economy. form. As far as polyester filament is concerned, the industry is highly concentrated, and larger companies play a leading role in the market, jointly promoting market development and maintaining industry profit levels, which to a certain extent is also beneficial to the healthy and stable development of the industry.
In the future, competition in the polyester market will further intensify, the granularity of business operations will be refined, and cost control will become more stringent. Polyester production companies will grow and develop through horizontal or vertical integration. With a wide industrial chain, enterprises with large scale, strong strength and complete industrial chain supporting facilities will have more say. Coupled with the formal signing of RCEP, which will promote regional import and export trade, the textile industry may usher in a favorable era of low tariffs. Therefore, in the future polyester industry, brand effect and large-scale development will be important chips for companies to compete for the market. </p