The horse race circle is busy expanding! Polyester Big Man’s Aromatics Industry Chain


Online News: On February 14, when many downstream clothing brands and terminal retailers are actively creating a "romantic Valentine's Day" atmosphere and are busy promoting the festival, chemical fiber listed company Tongkun Group Co., Ltd. (hereinafter referred to as "Tongkun shares") is also "hot".

On the same day, Tongkun Co., Ltd. issued several announcements announcing that it intends to build three new projects, including: signing an investment agreement with Rudongyangkou Port Economic Development Zone, Jiangsu Province, with an investment of 16 billion yuan, medium-term planning for the construction of PTA projects with an annual output of 2.5 million tons, FDY projects with an annual output of 900,000 tons and POY projects with an annual output of 300,000 tons for Hengteng Phase IV, and intelligent superimitated projects with an annual output of 500,000 tons for Hengchao chemical fibers. Real fibre project.

"In order to enhance business stability and gain cost advantages, leading polyester filament enterprises have extended their industrial chain upstream, starting from crude oil refining, to create a complete industrial chain of'aromatic hydrocarbon-PTA-polyester-polyester civil yarn', and to enhance the flexibility and risk resistance of enterprise development. At the same time, with the development of polyester filament product demand towards diversification and high quality, seizing the opportunity of market demand adjustment, introducing advanced production equipment, improving production intelligence and optimizing enterprise product structure have become an important choice to enhance enterprise market competitiveness and become stronger and bigger. Tongkun shares are stated in the announcement.

In this regard, an industry insider also pointed out: "At this stage, the polyester group is very competitive. From the overall situation of the polyester industry chain, as competition advances to the depth of industrial chain integration, several large polyester groups are accelerating the "horse race enclosure" through various forms, and constantly extending the industrial chain upwards to enhance the overall competitiveness of the entire industrial chain, which will also accelerate the re-integration of the entire polyester industry.

Tongkun's proposed three new projects have attracted much attention

In the process of this round of polyester industry expansion, Tongkun has taken the initiative. With its leading technical level, overall scale advantage and comprehensive strength, Tongkun has actively accelerated the expansion of polyester filament and PTA production capacity through the construction of several new projects.

In 2018, Tongkun's three major bases, Jiaxing Port Area, Zhouquan and Changxing Hengteng, were successfully promoted. Jiaxing Petrochemical FDY Project, Hengbang Phase III, Hengteng Phase III and Hengrui Phase III were put into operation. Among them, Hengteng Phase III project is the largest annual production capacity project of Tongkun Stock Company in 2018. It has 20 spinning production lines, including 16 POY production lines and 4 FDY production lines. After the project reaches full production, it will produce 600,000 tons of different types of differentiated fibers annually.

At present, Tongkun stock has an annual production capacity of 5.7 million tons of polyester filament, and a production line of 900,000 tons of polyester filament is being reformed. By the end of 2019, the total production capacity of polyester filament is expected to reach 6.6 million tons. At the same time, it has PTA capacity of 4 million tons per year. Moreover, its PTA products are basically used to meet the demand for raw materials of polyester filaments within the enterprise, forming a strong "synergistic effect" and cost control ability.

The announcement of three new projects on February 14 undoubtedly indicates that the expansion of Tongkun shares will continue.

According to the announcement, recently, Tongkun Stock Company and Jiangsu Rudong Yangkou Port Economic Development Zone Management Committee signed the "Tongkun Group (Yangkou Port) Petrochemical Polyester Integration Project Investment Cooperation Agreement". The project invests about 16 billion yuan and the total construction land is about 2610 mu. The annual production capacity of PTA, FDY and POY will be 2.5 million tons, 900,000 tons and 1.5 million tons. Among them, the investment of the first phase of the project is 12 billion yuan, which will build 2 x 2.5 million tons of PTA, 300,000 tons of FDY and 900,000 tons of POY projects. The second phase of the project has a total investment of 4 billion yuan. It is planned to build 600,000 tons of FDY and 600,000 tons of POY projects in the original planning of the main plant area. The first phase of the project is from December 2019 to December 2022, and the second phase is from December 2023 to December 2025.

In terms of technology, the project will realize the integrated production of PTA and polyester spinning, with obvious competitive advantages. In the process of melt direct spinning, the project will also use on-line adding technology and functional additives to realize on-line copolymerization and blending modification, and realize the production of new functional fibers such as antistatic, antimicrobial, flame retardant, dye-free and environmental protection. It will break through the technical bottleneck of continuous polycondensation melt direct spinning equipment which can only produce conventional products, so as to meet the customers'individuality of different functional fibers. Realize personalized customized production.

As the new project is located in Rudong, Jiangsu Province, which is a certain distance from Tongkun Group headquarters, Tongxiang, Zhejiang Province. In order to better promote the project, Tongkun shares announced on February 14 that it plans to establish a subsidiary company, Jiangsu Jiatong Energy Co., Ltd. The subsidiary company invested 950 million yuan by Tongkun, accounting for 95% of the shares; Pengyu Trading Co., Ltd. invested 50 million yuan, accounting for 5% of the shares.

Then, on the basis of the existing annual capacity of 4 million tons of PTA, what is the reason for Tongkun to build another 2.5 million tons of PTA project? In response, Tongkun shares said in the announcement that in recent years, under the background of the industry phase out backward production capacity, China's chemical fiber market share has further gathered to the leading enterprises. In the PTA sector, the production capacity of private polyester leading enterprises accounts for more than half of the total PTA production capacity of the whole industry, and the self-sufficiency rate of PTA is constantly increasing. In recent years, the rapid development of polyester fiber business in Tongkun shares has expanded the demand for PTA, but the self-sufficiency rate is seriously insufficient. After the new project is put into operation, the self-sufficiency rate of PTA in downstream enterprises of the company can be increased, and all of them can be digested by themselves. At the same time, the new PTA project will also help Tongkun realize the integration of industrial chain and further enhance the scale cost advantage.

On February 14, Tongkun also announced plans to build "Green Fiber Project with an annual output of 300,000 tons (Hengteng Phase IV)" and "Intelligent Super Simulated Fiber Project with an annual output of 500,000 tons".

Among them, Hengteng Phase IV project is planned to expropriate 11.32 mu of land in the northeast side of the existing plant area of Hengteng Company in Changxing District, Huzhou South Taihu Lake Industrial Agglomeration Zone, Zhejiang Province, and use 94.3 mu of existing land to organize the implementation of the new plant area. The total investment of the project is 911 million yuan. A new set of polyester production equipment will be built. 672 bits of high-speed FDY winding machine, 4 automatic packaging lines and 14 automatic drop lines will be introduced. Large capacity flexible polymerization, polyester melt direct spinning, intelligent and green production technology will be adopted to form an annual production capacity of 300,000 tons of functional and differentiated green fibers. The construction period of the project is expected to be 2 years. After putting into operation, the annual operating income is estimated to be 2.974 billion yuan, and the total annual profit is about 249.36 million yuan.

"Intelligent Super Simulated Fiber Project with an annual output of 500,000 tons" has an investment of 192,035,000 yuan. It is planned to build a new factory in Linhang Economic Zone, Tongxiang City, Zhejiang Province. It is planned to expropriate 217 mu of land. A set of polyester production equipment will be built. 880 bits of high-speed POY winding machine, 480 bits of FDY winding machine, 5 pieces of automatic packaging line and 20 pieces of automatic filament falling line will be introduced. Domestic large-capacity flexible polymerization technology and polyester will be Melt direct spinning technology, intelligent manufacturing technology and green manufacturing technology form an annual production capacity of 500,000 tons of intelligent super-simulation fibers and 1320 tons of acetaldehyde. The construction period of the project is expected to be 2 years. After putting into operation, the annual revenue is estimated to be about 4.96 billion yuan, and the total annual profit is about 410 million yuan.

For the significance of implementing these two new polyester fibre projects, Tongkun shares pointed out in the announcement that in recent years, China's chemical fibre industry has intensified innovation efforts, paid attention to the overall technological progress of the industry, eliminated backward production capacity by market means, and further improved the differentiation rate of chemical fibers, but there is still a certain gap with the differential rate of polyester fibers in developed countries. Therefore, improving the differentiation rate of chemical fiber products has become the most important part of the current development of chemical fiber industry. The new project will mainly produce differentiated and functional polyester filaments, which will help to further enhance the differentiated rate of polyester filament products in Tongkun Stock and optimize the product structure.

"The new project of Tongkun Stock Plan reflects the company's long-term development strategy - to become bigger and stronger on the road of petrochemical integration, and to use its capital and scale advantages to accelerate industry integration, so as to gradually grasp the pricing capacity of the polyester industry chain. It is expected that by the end of 2020, the production capacity of polyester filament in Tongkun will reach 7.6 million tons, and the leading position will be stable. Maintain the company's "recommended" rating. An analyst from a securities firm said.

Competition of Petroleum Refining Projects on "Big Boy" of Polyester

The announcement of Tongkun New Project Investment Plan has also made the chemical fibre industry and capital market pay more attention to the new situation of the current polyester Market - the integrated management mode of industrial chain, especially to the hot topic of "privately operated refining and chemical projects".

In recent years, the representative enterprises which only produce polyester fibers have invested in PTA projects, which has changed the competition pattern of the polyester industry chain. Subsequently, these representative enterprises have extended the expanded antenna to the upstream of PTA, the refining project of producing PX. Over the past few years, the idea and mode of strengthening the whole industrial chain of "PX-PTA-polyester" in large-scale representative private polyester enterprises have become clearer and clearer, which has also opened a "competition" for refining and chemical projects.

Private chemical fiber enterprises layout PX project, first of all, benefited from the opening of domestic policies. Prior to this, China's refining and chemical projects were funded by state-owned enterprises. Relevant data show that as of July 2017, there are 17 PX manufacturers in China, with a total capacity of 13.83 million tons per year. Among them, China Petrochemical Group has nine PX production plants, with a total PX capacity of 4.93 million tons per year, accounting for 35.7% of the total domestic PX production capacity; China Petroleum and Natural Gas Group Corporation has three PX production plants, with a total PX production capacity of 2.35 million tons per year, accounting for 17.0% of the total domestic production capacity; China National Petroleum Corporation has one PX production plant, with a PX production capacity of 950,000 tons per year, accounting for about 6.7% of the total domestic production capacity. 9% of the total PX capacity of the three major groups accounted for 59.5%.

However, in recent years, relevant national policies have begun to allow private enterprises to carry out refining projects. In May 2015, the National Development and Reform Commission issued the "Petrochemical Industry Planning and Distribution Plan". In the Plan of Petrochemical Industry Planning and Distribution, China will build seven major petrochemical industry bases, corresponding to Ningbo, Changxing Island, Dalian and Lianyungang, Jiangsu. In July 2018, the State Council adopted the "Petrochemical Industry Planning and Distribution Plan", which calls for priority in safety and environmental protection, and supports sole or holding investment by private and foreign-funded enterprises to promote industrial upgrading.

Private chemical fibre enterprises layout PX project, followed by large polyester enterprise groups themselves out of the market demand to enhance the independent guarantee ability of raw materials and the overall competitive advantage of the industrial chain.

PX is a very important raw material for chemical products. In the aromatics industry chain, 90% of PX is used to produce PTA, and 90% of PTA is used to produce polyester products. However, due to environmental protection, misunderstanding and resistance of the domestic public to PX project and other factors, the self-sufficiency of PX required by China's chemical industry is insufficient and the degree of external dependence is high.

In the past 10 years, the development of PX industry in China is relatively slow, the supply of domestic PX is insufficient, and there is a prominent contradiction between the rapid growth of demand for PX in PTA and polyester industries. This makes the import dependence of PX required by China for many years up to 50%, mainly from Japan, Korea and other countries and Taiwan, China. This situation has formed a certain restriction on the efficient control of production cost and the control ability of industrial chain of polyester enterprises in China.

In addition, the refinery sector also has a relatively considerable profit margin. Therefore, when the policy was opened to private enterprises, leading polyester enterprises began to actively apply for the construction of refining and chemical projects, and obtained approval. These projects are as follows: 20 million tons/year refining and chemical integration project constructed by Hengli Group in Changxing Island of Dalian, 40 million tons/year refining and chemical integration project of Zhejiang Petrochemical Company in Zhoushan of Zhejiang Province by Rongsheng Holding Group and Tongkun Group, PMB petrochemical project constructed by Hengyi Group in Brunei, and refining and chemical integration project constructed by Shenghong Group in Lianyungang.

Among them, Hengli Refining and Chemical Project will soon get through the whole production process and realize the full-load operation of the entire refinery. At present, Zhejiang Petrochemical Refining and Chemical Integration Project is progressing smoothly, and the oil-feeding operation has begun. It is expected that it will be put into operation this year. Hengyi Brunei PMB Petrochemical Project is also being vigorously promoted. Shenghong Refining and Chemical Integration Project started construction at the end of 2018 and is expected to be completed and put into operation in 2021.

In this regard, industry analysts point out that the "aromatics industry" represented by PX and the "olefins industry" represented by ethylene are known as the "two families" of petrochemical industry. Because of the long downstream industrial chain and high added value of PX, aromatic hydrocarbon industry processing is also known as the "gold industry chain". And 80% of the downstream industries in the global PX industry chain are in China. With several large-scale private refining projects coming into operation in 2019 and the next few years, there will be "synergistic effect" in the whole industry chain for enterprises and industries, which will strongly support the performance of several listed companies, and will also drive the redistribution of profits in the whole polyester industry chain.

"From a deeper point of view, with the successive production of several private enterprises'integrated refining and petrochemical projects, the self-sufficiency rate of PX in China will be improved, and the voice of China's petroleum and petrochemical industry and petrochemical polyester industry in the global market will be further enhanced." The above industry insiders said.

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