Hengli, Tong Kun, Heng Yi And Other Chemical Fiber Giants Put The Banner Of Expansion Into Southwest China.

Although excellent companies differ from each other, they have similar characteristics.

These characteristics usually include sensitive and accurate judgement of the dividend policy that the relevant macro policies can bring. They can often accurately grasp the investment hotspots of the industry in the next 5 or even 10 years, and be bold, firm and seize the opportunity to quickly turn the idea into reality.

At present, these characteristics are increasingly evident in the big dealers of the petrochemical polyester Market in China, and there are some noteworthy changes in the investment direction in the industry. Under the upsurge of integrated development of refining and chemical industry, the throughput capacity of ports and wharves is very important.

Following the Hainan Island, Dalian, Changxing Island and Zhejiang Zhoushan islands, large scale chemical fiber enterprises began to plug the expansion into the southwest.

1, Hengli 26 billion enters Guizhou.

In December 1st, the signing ceremony of the memorandum of investment cooperation between the Guizhou Provincial People's government and Jiangsu Hengli Group Co., Ltd. was held in Guiyang. According to the memorandum agreement, after the implementation of the project conditions, Hengli Group will invest 26 billion yuan in Guizhou in three years, and the project will be completed after the completion of the project. It is estimated that the operating income will be 30 billion yuan, and the profits and taxes will be 3 billion yuan.

It is understood that Hengli Group intends to invest in the following aspects:

• In the construction of Hengli Group regional headquarters in Guiyang, we will build Hengli Group's headquarters in Guizhou and southwest China.
• To build Hengli Textile New Material Industrial Park in Chishui, Zunyi, to build Hengli Group's new high-end materials and high-end fabric production base in Guizhou.
• In the field of wine making marketing, we should give full play to the advantages of enterprises, promote industrial transformation and upgrading, and participate in upgrading and transformation of traditional industries in Guizhou.
• Feasibility study on investment in coal chemical projects in Guizhou.

Guizhou will establish a project promotion working group to provide security services, and provide support in accordance with the law in terms of project construction, project land, project subsidies, introduction of talents, tax and fee policies and so on.

2, Tung Kun group will build a Green Petrochemical integration project in Qinzhou, Guangxi.

In August 27th this year, the Qinzhou municipal government of Guangxi and Zhejiang Tong Kun Holdings Group Limited (hereinafter referred to as "Tong Kun group") signed the "investment contract for the integration of green and petrochemical industries in Beibu Gulf of Qinzhou" in Nanning.

According to the investment contract, the Tong Kun group will invest about 51 billion yuan to build an integrated industrial base project of the Beibu Gulf green and petrochemical industry in Qinzhou, Guangxi, with an annual output of 2 million 800 thousand tons of aromatics and 5 million tons of PTA.

In fact, the Tong Kun group has invested 40 million tons of integrated refining and petrochemical project in Zhejiang Province in 2015. In the first half of 2017, Tong Kun acquired the 20% stake in Zhejiang Petrochemical, which was held by Tung Kun holdings, which was put into the plate of the listed company. In May this year, the first batch of units of Zhejiang Petrochemical Project was put into operation and put into operation step by step.

Qinzhou's Beibu Gulf Green Petrochemical integrated industrial base project is another step for the Tong Kun group to deepen the strategic layout of the whole industrial chain and continue to upgrade its refining and chemical projects.

In the PTA sector, the first phase of the Jiaxing Petrochemical Company's annual output of 1 million 200 thousand tons PTA has been put into operation. At the end of 2017, the two phase of the Jiaxing Petrochemical Company's annual output of 2 million tons of PTA projects has also been put into operation. At present, the actual annual production capacity of PTA has reached 4 million 200 thousand tons, and mainly for self production and self sufficiency rate of over 94%.

Qinzhou's Beibu Bay Green Petrochemical integrated industrial base project is the further increase of the Tong Kun group's participation in the integration of Zhejiang and petrochemical refining and chemical projects, and is also a further expansion of its capacity scale in PTA on the basis of Jiaxing petrochemical project.

Wang Jibing, director of the Qinzhou municipal Party committee and the Standing Committee of the Municipal People's Congress, said the the Guangxi Zhuang Autonomous Region Party committee and government attached great importance to the construction of the Beibu Bay Green Petrochemical integrated industrial base project. The project landed in Qinzhou at the right time. We hope that the Tong Kun holding group will firmly establish the concept of green development and further optimize the plan so as to speed up the construction of the project and urge the project to be built and put into operation at an early date so as to boost Qinzhou's "strong leader, supplement chain and cluster". We also hope that the two sides will give full play to their advantages and work together to build a Green Petrochemical Industrial Park to achieve mutual benefit and win-win results.

Chen Shiliang, chairman of Tong Kun holding group, said that Qinzhou has great potential for development and good business environment. It is a good place for the Tong Kun group to realize the dream of all-round development of enterprises. The Tong Kun group will adhere to the high starting point plan, high standard allocation, high quality construction, high level management and operation, with the greatest determination to promote the project's early start, early construction, early commissioning and early results, so as to achieve better and faster development.

3, Hengyi high-end green chemical and chemical fiber integration project settled in Qinzhou.

In July 7th, the Qinzhou municipal government and Zhejiang Hengyi Group signed an 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. The project is a "short board" project of Guangxi petrochemical industry, which can effectively extend the downstream industry chain of aromatics and make up for the blank of our nylon chemical fiber industry, and promote the high quality development of petrochemical industry in the Beibu Gulf Economic Zone.

What is the supporting power of Southwest China to polyester petrochemical projects?

For the transportation of bulk chemical products, shipping from the port has obvious advantages of large volume and low transportation cost. This is also a deep reason for these large refinery projects to choose the most important ports and islands.

Hengli must be meticulously selected for site selection and construction. As the basic raw material of coal to olefin and even coal chemical industry, Guizhou is the champion of Southwest China. Of course, if Hengli only sees the abundance of coal resources in Guizhou, Hengli may only build factories in Guizhou.

At the same time, the so-called "goods go high", economic prosperity can attract huge investments. In the first three quarters of this year, the added value of above scale industries increased by 9.6% over the same period in Guizhou, the first in the country. Compared with the national average, the growth advantage of Guizhou's second industry is particularly obvious, which is 4.4 percentage points higher than the national average growth rate (5.9%).

In the first three quarters of this year, Guizhou's industrial investment increased by 24% over the same period last year. The growth rate of investment in liquor and drinking industry in the first pillar industry reached 18.1%, and the growth rate of coal mining and washing industry as well as power, heat, gas and water production reached 29.9% and 39.8% respectively. With the rise of Guizhou, Hengli is building a regional headquarters of Guiyang construction group, making Hengli Group's headquarters base for trade, logistics, settlement and so on in Guizhou and even southwest China.

In addition, Tung Kun and Heng Yi industrial base projects selected in Qinzhou are also carefully considered.

Located in the southwestern part of Qinzhou, it is the central location of the southern (Ningxia) North (SEA) Qinzhou (state) defense zone (Beibu Gulf Economic Zone). It is the most convenient access to the southwest. At the same time, Qinzhou is a city with "one belt and one road" and a South to sea node city. It is an important city in the Beibu Gulf Urban Agglomerations, and the deep-water port is also the Qinzhou port of the national bonded port. It is precisely because of such a position, port advantage and under such a policy background that Qinzhou has become the Western heavy spot attracting large chemical fiber enterprises to invest.

According to the briefing, at present, the petrochemical industry in Qinzhou has basically formed an industrial framework extending from benzene based materials to chemical fibers. The integrated industrial base project of Tung Kun and Heng Yi Petrochemical will complement the short board of aromatics and PTA industry, and realize the "partition wall" between industrial projects and the synergy between industrial chains, so as to promote the high quality development of Guangxi petrochemical industry.

Next, along with Hengli, Hengyi and new projects of Tong Kun, the strategic fulcrum role of Southwest China in opening to the ASEAN market will be further highlighted. With the in-depth layout of several large-scale private chemical fiber enterprises in the refining and chemical industry, the bargaining power and comprehensive competitiveness of China's large-scale chemical fiber enterprises and polyester polyester industry in the global aromatics -PTA- polyester industry chain will be further enhanced.

In particular, with the completion of the new projects in Southwest China, it will help our large chemical fiber enterprises to expand these international markets along the "one belt" road.