Affected by weak demand from the downstream textile and clothing industry, the polyester filament industry has been in a difficult situation in the past year. On the evening of the 11th, the industry leader Tongkun Co., Ltd. issued a 2 billion fixed increase announcement, of which 600 million yuan will be used for surfactants and textile special auxiliaries projects. The relevant person in charge of the company said that these two types of products are excipients, and with their advantages in formulation and other aspects, self-produced excipients will have obvious cost advantages.
Tongkun shares said that this private placement project will help ensure the quality of the company’s chemical fiber products and the smooth release of chemical fiber production capacity. As of the first half of 2020, the company has an annual production capacity of 4.2 million tons of PTA, a polymerization capacity of 6.4 million tons/year, and a polyester filament production capacity of 6.9 million tons/year. Its production and sales rank first in the country, and its domestic filament market share is approximately 18%. %, and the polyester filament business brings 85% of the company’s operating income.
Although the company currently leads the country in polyester filament production capacity of 6.9 million tons/year, after Tongkun Shares, Hengyi Petrochemical, Xinfengming, etc. will also be released in 2021 New production capacity, in other words, the cost advantage brought by production capacity will be reduced, and competition on the cost side will still be very fierce.
In recent years, in order to enhance operational stability and obtain cost advantages, leading polyester filament companies have expanded polyester filament production capacity and extended the industrial chain upstream, and have initially completed the upstream raw material end layout. Later, Tongkun Co., Ltd. turned its attention to excipients, intending to further promote cost reduction.
Hengli Petrochemical, another polyester leader, has vigorously developed new materials in recent years, aiming to further enhance industry competitiveness and product added value. On December 25, 2020, Yingkou Kanghui Petrochemical Co., Ltd., a subsidiary of Hengli Petrochemical Co., Ltd., successfully started the first-time start-up of its 33,000-ton PBS biodegradable polyester new material project, successfully put into production and produced qualified products. Hengli Petrochemical is committed to Kanghui Petrochemical, its holding subsidiary, will make every effort to build an industry-leading new material production base. Kanghui Petrochemical began to cooperate with Dalian University of Technology as early as August 2019 to independently develop the production formula of “PBS biodegradable polyester new material”. In early 2020, it invested in the construction of a PBS biodegradable polyester new material with an annual output of 33,000 tons. Material Project. It is understood that with the continuous advancement of environmental protection policies, the enhancement of public environmental awareness, technological advancement and cost reduction, PBAT materials have broad market space. The continued layout of Hengli’s new materials business will help the company further enhance its industry competitiveness, extend the industrial value chain and increase the added value of its products.
Mainstream polyester polyester factories reduce costs and increase efficiency, and continue to extend downstream
While mainstream polyester and polyester factories continue to develop into the midstream and upstream, they are also slowly moving into the downstream and terminal markets.
Among the three specifications of polyester filament products, DTY has always been the most profitable. Many melt direct spinning polyester filament factories are also actively moving into the field of texturing. The total number of texturing equipment provided by the six major polyester filament factories is around 2,100. In addition to large-scale production, the raw material POY is self-produced and has strong cost control capabilities, so it has a strong say in market pricing.
However, in the past two years, the number of texturing machines in polyester filament factories in Fujian has increased rapidly, and the number of chemical fiber factories with more than 200 units in Xiaoshao and other regions is also increasing. As the demand for functional fabrics increases, the future texturing field will not only see large-scale growth, but also make breakthroughs in the field of functional and differentiated fibers.
The downstream factory of polyester filament POY is the texturing factory, and the downstream factory of polyester filament FDY and DTY is the weaving factory.
Hengli has been deeply involved in the weaving field for many years. It owns more than 10,000 water-jet looms and more than 30,000 textile equipment. Its production capacity exceeds 3 billion meters per year, making it the world’s largest One of the textile production bases. In November last year, Hengli Group held signing ceremonies with the Gui’an New District Administrative Committee and Rifa Textile Machinery. The former was to invest in the construction of the (Gui’an New District) intelligent new materials industrial park project, and the latter was to purchase a total of more than 10,000 A high-end chemical fiber twisting machine and a high-speed intelligent water-jet loom.
In December last year, Tongkun Group also signed an investment agreement with the Shuyang Economic and Technological Development Zone Management Committee, which involved 10,000 looms.
In the field of weaving, a water-jet loom with a scale of more than 1,000 can be called a large factory, and a water-jet loom with a scale of more than 200 can be called a standardized factory. In Wujiang, where water-jet looms are traditionally concentrated, the total number of looms is around 240,000. This shows that Hengli and Tongkun extend their vertical reach into the weaving field.
They mainly produce high-end textile fabrics. With their advantages in the field of functional fibers, they may be able to better help the upgrading of my country’s textile and apparel industry in the future. As the concentration of downstream weaving production capacity gradually increases, the trading model of shipments from weaving factories may improve in the future. Overall, with the advantages of industrial integration, the risk resistance, profitability and capital reserve capabilities of leading polyester companies will be greatly improved.
With the continuous layout of the “PX-PTA-polyester-spinning-texturing-weaving” industrial chain by mainstream polyester factories,Improvement, in the context of industrial chain integration, leading polyester companies do not have to “bet” on a single link to avoid huge losses due to a decline in the prosperity of a certain link. Instead, they can allocate as appropriate based on changes in the profit margins of each link, and more Good to enhance industry influence. </p
