In recent years, leading polyester filament companies have continued to expand their asset scale and revenue through continuous vertical and horizontal expansion. Hengli Petrochemical, Rongsheng Petrochemical, and Hengyi Petrochemical have successfully extended their reach to the upstream refining field. Dongfang Shenghong’s 16 million tons annual refining and chemical integration project is steadily advancing towards the goal of being put into operation in 2021. Tongkun Co., Ltd. indirectly participates in the refining and PX projects through its 20% stake in the Zhejiang Petrochemical Project. Xinfengming has also been working hard to speed up the completion of the PTA project in the past two years.
Polyester filament is still expanding rapidly. In 2020, polyester filament production capacity will be 33.713 million tons/year, with a production capacity growth rate of 10.60%. The expansion of polyester filament production capacity is mainly focused on leading enterprises in existing polyester factories, with polyester filament CR5 accounting for “half of the industry”.
Looking at the production capacity of polyester filament CR5, according to statistical data, the total production capacity of polyester filament in 2020 is 33.717 million tons/year. The new filament production capacity is mainly concentrated in the leading polyester factories, Tongkun, Hengyi, Xinfengming, Shenghong, and Hengli. In 2020, the new polyester filament production capacity will be 3.75 million tons/year, with a production capacity growth rate of 12.51%. It is estimated that the total polyester filament production capacity in 2021 will be 37.54 million tons/year, with new production capacity at 3.82 million tons/year, and a production capacity growth rate of 11.33%. Among them, CR5’s new production capacity will account for 62.34%, mainly concentrated in leading manufacturers.
Domestic polyester filament production capacity is mainly concentrated in Jiangsu and Zhejiang. Although the long-term shutdown equipment has been partially restarted in 2017-18, with the polyester filament related to refining and chemical integration With the rapid expansion of production capacity, leading companies will still hold “half of the market” for polyester filament yarns in the future. At the same time, Tongkun Co., Ltd. and Xinfengming are the main contributors to new polyester filament production capacity in the next two years.
Xinfengming’s planned new production capacity is larger
The planned new production capacity in the polyester filament industry in the future basically comes from the expansion of production by leading companies in the industry. Tongkun Co., Ltd. and Xinfengming have both planned a new round of production capacity expansion plans, among which Xinfengming’s plan The production capacity is larger.
Tongkun Co., Ltd. announced in February 2019 that it plans to invest approximately 16 billion yuan to form an annual output of 2*2.5 million tons of PTA and 900,000 tons in the Yangkou Port Economic Development Zone in Rudong, Jiangsu. tons of FDY and 1.5 million tons of POY. The investment in the first phase is 12 billion yuan, building 2*2.5 million tons of PTA, 300,000 tons of FDY, and 900,000 tons of POY, supporting corresponding public systems, and at the same time expanding coal-fired cogeneration at the heat source point in the first phase of Lingang Industrial Zone project. The first phase of construction will start from December 2019 to December 2022.
Xinfengming’s 2019 annual report stated that the company’s current production capacity is expected to be two sets per year or five sets every two years. In March 2020, the company announced that it would invest 13 billion yuan. An annual production capacity of 4 million tons of PTA and 2.1 million tons of differentiated and functional fibers has been formed in Zhejiang Dushangang Economic Development Zone. In June 2020, the company announced that it would invest 11 billion yuan in the Zhouquan Town Industrial Zone, Tongxiang City On the north side of Linhang Avenue, a new material project with an annual output of 2 million tons of functional flexible customized staple fibers, 1 million tons of functional differentiated fibers and 300,000 tons of polyester film will be constructed.
Tongkun in the next two years The proportion of PTA outsourcing of shares may increase
As mentioned above, there are still 15 million tons of PTA devices planned to be put into production in the past two years, with an annual growth rate of more than 10%. Moreover, the new devices adopt more advanced process technologies, with a single production capacity reaching 2.4-2.5 million tons. It is expected that the centralized production of PTA devices will once again suppress the profitability of the PTA link. Jiaxing Petrochemical Phase II and Dushan Energy Phase I and II both adopt more advanced production processes, but it is expected that the profitability of the PTA link in the next 2-3 years will decline compared with 2018-2019, and the profitability advantage brought by PTA supporting facilities will Somewhat weakened.
Tongkun Co., Ltd. has gradually reduced the proportion of PTA outsourcing through the commissioning of the first and second phases of Jiaxing Petrochemical PTA equipment. According to calculations, the company’s PTA outsourcing proportion in 2019 is approximately 16%. With the launch of new polyester filament production capacity, the company’s PTA demand will also increase again. In the future, the matching degree of the company’s PTA will depend on the production capacity of the Rudong project PTA (5 million tons of PTA). The company can also adjust according to the prosperity of the PTA industry. Arrange the timing of the launch to avoid the impact of concentrated deployment of production capacity in the PTA industry on the profitability of the PTA link.
Xinfengming extended the industrial chain through the commissioning of the first and second phases of Dushan Energy’s PTA units. The first phase of the 2.2 million-ton unit was put into operation in October 2019. The second phase of Dushan Energy The 2.2 million tons of PTA in the first phase is expected to be put into operation in Q3 of 2020. After the second phase device is put into operation, the company’s PTA outsourcing proportion will be significantly reduced. According to calculations, the company’s PTA outsourcing proportion in 2021-2022 is only 0% and 10%.
</o:p
