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    Heng Yi 400 Thousand Tons Of Raw Material Production Capacity Started To Expand To The Upper Reaches Of Nylon, And Make Nylon To Polyester Price.

    2019/8/19 11:11:00 4

    Heng YiNylonPolyester

    Heng Yi Petrochemical announced in August 8th that its subsidiary Zhejiang baling Hengyi caprolactam limited liability company (hereinafter referred to as "caprolactam company") invested in the construction of the "400 thousand tons / year caprolactam expansion project" has been completed and formally put into operation. At this point, caprolactam caprolactam production capacity of 400 thousand tons / year.


    Hengyi Petrochemical has seized the favorable opportunity for the development of caprolactam industry and completed the capacity expansion project of caprolactam at 400 thousand tons / year. The operation of the project will increase the capacity and output of the caprolactam product, reduce the cost of caprolactam unit and the unit production cost, promote the structural optimization of caprolactam, expand the market space of high-end products, enhance the market competitiveness of caprolactam products, increase the profit growth of caprolactam products, enhance the overall profitability of Hengyi petrochemical, consolidate and enhance the leading position of Hengyi petrochemical industry, and realize the two wheel drive of Hengyi petrochemical industry chain.

    In the future, Hengyi Petrochemical will further consolidate and enhance the core competitiveness of the main business of Sinopec Chemical fiber, and promote the sustained growth of the interests of shareholders of Hengyi petrochemical company.


    The thirty-fourth session of the ninth board of directors of Hengyi Petrochemical Company considered and passed the motion on investment and construction of 400 thousand tons / year caprolactam expansion project, and agreed to use RMB 2 billion 478 million 850 thousand yuan to invest in building "caprolactam capacity expansion project".


    The rapid expansion and integration of leading enterprises will accelerate the reconstruction of the upstream of nylon.


    Over the past few years, the price of nylon has been constrained by the high price, and the output growth of the industry is far behind that of polyester. The difference in sales volume between polyester and Dacron has increased from 25 million tons in 11 years to 37 million tons in 17 years, and the gap is increasing.


    However, as far as performance is concerned, nylon is better than polyester in terms of abrasion resistance and dyeing. The most important problem is that downstream spinning enterprises do not have the upper caprolactam raw materials. Upstream enterprises also do not have downstream spinning support, and mainly state-owned enterprises, often based on their own profit maximization, and do not pay attention to the long-term healthy development of the downstream.

    On the one hand, once the demand is improved, caprolactam is substantially increased. Compared with the upstream PTA of polyester, it has been in a profit-making situation for a long time. For example, the single ton profit can reach about 9000 yuan at the peak time, which is more than 5 times that of PTA, and the price of the nylon fiber is close to 3 times that of the polyester fiber.


    On the other hand, the pricing mode of upstream chase and drop also led to a large fluctuation in the price of caprolactam in the past two years, and the price of nylon also fluctuated sharply, which reduced the acceptance of nylon to the downstream.

    But looking forward to the future, the industry is undergoing fundamental changes. The rapid expansion and integration process of leading enterprises will accelerate the redevelopment of upstream, and stimulate the rapid growth of downstream demand, and even subvert the competition pattern of the whole industry.


    2010 domestic caprolactam capacity and output have been growing steadily. Since 2017, the domestic caprolactam enterprises have greatly improved their profitability, and the number of caprolactam projects has increased gradually. The production capacity of caprolactam in China is expanding significantly this year. The domestic capacity of caprolactam is 1 million 230 thousand tons / year this year, an increase of 32.88%.


    At present, the new production of caprolactam has basically achieved the matching of cyclohexanone, raw material self-sufficiency, and the corresponding cost has also been greatly reduced, forming the integrated production of cyclohexanone caprolactam. Caprolactam is basically used for the production of nylon 6 (PA6). The slicing and production of polycaprolactam downstream from Heng Shen, Jinjiang, Haiyang and other caprolactam production enterprises are actively expanding to the upper reaches, accelerating the integration process of the upstream and downstream, forming the integration of cyclohexanone caprolactam polymerization and spinning. The Heng Shen group has pioneered the completion of the complete industrial chain of cyclohexanone caprolactam polymerization - spinning - warping - warping - weaving and dyeing and finishing.

    The rapid expansion of spinning giant will rebuild upstream. Caprolactam nylon 6 industry will face structural overcapacity and intensified competition.

    And Heng Yi has become the king of the production chain of nylon industry.


    In July 7th this year, the Guangxi Qinzhou government and Zhejiang Hengyi Group signed the investment cooperation agreement on high-end green chemical and chemical fiber integration projects in Nanning. Chen Wu, chairman of the autonomous region, met with Qiu Jianlin, chairman of Hengyi group, and jointly witnessed the signing of the agreement. Fei Zhirong, vice chairman of the autonomous region and Huang Zhou, Secretary General of the regional government, attended and signed the meeting.

    Wang Jibing, Secretary of the Qinzhou Municipal Committee and director of the Standing Committee of the Municipal People's Congress, presided over the signing ceremony. Mayor Tan Pichuang and Ni Defeng, President of Hengyi group of Zhejiang, respectively signed the contract for the production of 1 million 200 thousand caprolactam polyamide industrial integration and supporting engineering projects in Hengyi Qinzhou, and the supplementary contract for the investment contract of industrial production and integration of caprolactam polyamide production in Hengyi Qinzhou with an annual output of 1 million 200 thousand tons.


    According to the agreement, Hengyi group will build "one belt and one way" trans regional cooperation and ASEAN oriented high-end green chemical and chemical fiber integration project in Qinzhou, and build a project of caprolactam nylon and PTA- polyester. The total investment will be about 45 billion yuan. After the completion of the project, it is expected to achieve an annual output value of about 50 billion yuan and a tax of about 4 billion 500 million yuan. Among them, this year will start construction of an annual production of 1 million 200 thousand tons of caprolactam polyamide industrial integration and supporting projects, with a total investment of about 22 billion yuan. After completion, it is estimated that the annual output value will be about 20 billion yuan and the tax revenue will be about 2 billion yuan.

    "Polyester + nylon" double industry chain driven! Hengyi marching towards the top 500 in the world


    In recent years, Hengyi has taken advantage of the favorable opportunity for steady growth of the industry. With the innovation and pluralism of "capital + acquisition + integration", it has absorbed and integrated the high quality production capacity of the industry to further improve the industrial layout. At present, it has formed the leading model of "polyester + nylon" double industry chain driven development mode.

    Since 2017, Hengyi Petrochemical has repeatedly integrated 8 enterprises in the polyester industry through multiple acquisitions, and has increased 4 million tons of polyester production capacity. In 2018, Hengyi group achieved an industrial sales income of 147 billion 393 million yuan.


    At the same time, Hengyi responded positively to the "one belt and one way" initiative, and the constant Brunei PMB petrochemical project, which was co operated with Brunei government, was hailed as "flagship cooperation project" between China and the two countries. It will open the "last mile" of Hengyi from oil refining to chemical fiber whole industrial chain. At present, the first phase of the project has been fully tested, and commercial operation is coming soon. The two phase of the project has also entered the stage of demonstration.


    At present, Hengyi is building a "platform", creating "two centers" and creating a "demonstration" in accordance with the development ideas of "built base and internal strong headquarters", and strive to achieve 500 billion yuan of industrial gross output value and become one of the world's top 500 enterprises in the world, and become one of the world's first-class petrochemical industry group in 2024, when Hengyi built 50th anniversary enterprises.


    Will nylon market become the next big textile giant? Wait and see. Source: China chemical industry, Hengyi petrochemical

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