Zhejiang Heng Teng Differential Fiber Project: 327 Workers Rush To Work, Completed In The First Half Of 2020

Tong Kun group Zhejiang Heng Teng differential fiber project is speeding up construction.

At the construction site, a total of 327 workers are working overtime. At present, the polyester workshop is carrying out equipment installation, trial production in September, and spinning line trial production at the end of December. The first half of 2020 was fully completed.

Xiaobian inspection notice found that the implementation unit of the four Teng project is the Zhejiang Tong Teng difference Fiber Co., Ltd., the total investment of the project is 991 million yuan (equivalent to US $150 million), of which 926 million yuan is invested in construction (including 104 million US dollars in foreign exchange), 28 million 500 thousand yuan in the construction period and 28 million 500 thousand yuan in the bottom.

The announcement shows that the hang Teng four phase project uses 94.3 mu of original land and 11.32 acres of newly added land, and plans to build 99337 square meters of new polyester workshop and spinning workshop. 1 sets of polyester production plant are set up. The 672 FDY high-speed winding machine, 4 automatic packaging line, 14 automatic drop line and auxiliary production equipment and utility production device are introduced. The production capacity of the annual production of functional differential green fiber 300 thousand tons is achieved by adopting large capacity flexible polymerization, polyester melt direct spinning and intelligent and green production technology.

At the same time, it is understood that the leading products of the Heng Teng project are ultra fine denier, super cotton imitation, UV resistant and antistatic fibers. The fabric processed by this kind of fiber has excellent characteristics in gloss, handle, dyeing and comfort, and has high added value of products, which can enhance the market competitiveness of Tong Kun stock.

In the announcement, the company estimated that the annual operating income was estimated at 6 billion 24 million yuan, and the total profit in the normal year was 518 million yuan.

Tong Kun shares said that the implementation of the four Teng project will help enterprises to enhance their market competitiveness and achieve sound and rapid development. It is also in line with the "anti cyclical development" idea of Tong Kun group, which is conducive to saving investment costs and maximizing investment returns.

In the 17 year of March 27th, when the hang Teng four project was launched, Tung Kun also started the construction of differentiated POY project with an annual output of 300 thousand tons in Jiaxing Petrochemical Company, with a total investment of 988 million yuan.

The leading products of Jiaxing petrochemical company include fine soft fleece, fluorescent flexible velvet antistatic, matte cotton soft pile and coral velvet POY products. It is an important raw material for high-grade textiles. The product of this project accords with the policy guiding development direction of the chemical fiber product differentiation, functionalization and hi-tech in the whole province. The fabric made of this kind of fiber has excellent characteristics in luster, handle, dyeing and comfort, and has high added value of products, which can greatly enhance the economic benefits of Tong Kun stock. In the announcement, the company estimated that the annual operating income was estimated at 3 billion 150 million yuan, and the total profit in the normal year was 350 million yuan.

In recent years and the above Tong Kun share's capacity to put in action, the company has been working in the field of differential fiber, and layout PTA to achieve upstream and downstream integration.

Steadily promoting differentiated fiber projects

Achieving "PTA- polyester" upstream and downstream integration

Tong Kun shares originated in Tongxiang chemical fiber factory established in 1982. After more than thirty years of development, it has become the world's largest polyester filament production enterprise, and owns 12 subsidiary companies, mainly engaged in the production and sale of all kinds of civilian polyester filament. At present, the company's main products are "GOLDEN COCK" brand and "Tong Kun" brand polyester filament, including POY (pre oriented wire), FDY (Qian Shensi), DTY (low elastic wire), composite wire and wire drawing five series of more than 1000 varieties, known as the "WAL-MART" of chemical fiber industry.

1, since the listing of the company, we have steadily promoted differentiated and functional fiber projects.

We are committed to upgrading the traditional chemical fiber technology, enriching the variety structure of differentiated and functional polyester filament, expanding the scale of the company's production, reducing the cost of production, and improving the overall profitability of the company through the implementation of projects such as large capacity melt direct, differential fiber and other advanced technologies. In 2010, the differential rate of polyester filament has reached 52%.

Tong Kun shares has a complete PTA- polyester industry chain. Under the scale effect, the single ton net profit of polyester filament industry is ahead: in the first half of 2018, the polyester polymerization capacity is 5 million 200 thousand tons, the polyester filament capacity is 5 million 400 thousand tons, the market share is over 14%, and the international market share is 10%.

2, the company formed a specialized division of labor integrated operation mode through its subsidiaries.

Among them, Hengsheng chemical fiber, Hengtong chemical fiber, Hengzhou chemical fiber, Hengji fiber, Hengteng fiber and listed companies are the core. They are responsible for the main polyester filament products of the production group. Jiaxing Petrochemical is responsible for the production of polyester raw material PTA, while other subsidiaries provide the main raw materials and accessories for polyester production.

3, polyester filament supply and demand relations improved, industry profitability enhancement

At present, there are over 150 polyester production enterprises in China, mainly distributed in coastal provinces and cities such as Zhejiang, Jiangsu, Shanghai, Fujian and Guangdong. Zhejiang accounts for half of the total, and East China accounts for over 80%.

Among them, a total of 1 million tons of production capacity of the total number of 13 factories, the total capacity of 24 million 130 thousand tons, accounting for 52% of total capacity. Tung Kun group, San Fang lane and Yizheng chemical fiber production ranked the top three in the country, occupying more than 20% of the total capacity of the country.

In 2011, China's polyester filament production capacity was rapidly put into operation, and the capacity increased by 10 million tons in one year, reaching 32 million tons. After 2012, the capacity growth rate has been declining year by year, and the backward production process has been slowly advancing. But at the same time, 2009-2014 years, domestic and foreign economic growth began to decline, downstream demand for polyester continues to be weak, demand growth is not as fast as supply growth, oversupply is becoming more and more serious, the industry has entered a downward cycle, and the profitability of enterprises has declined.

Since 2015, some enterprises with a certain scale in the industry have begun to withdraw from the market one after another. Production capacity has declined for the first time in ten years, the phenomenon of oversupply of industries has been alleviated, and the volume of overproduction has begun to decline. By the end of 2015, China's polyester filament production capacity of 32 million 510 thousand tons, output of 29 million 580 thousand tons, apparent consumption of 28 million 380 thousand tons.

In 2016 and 2017, China's new growth silk production capacity was only 1 million 200 thousand tons and 1 million 400 thousand tons, and more than half of the new capacity came from the leading industries such as Tung Kun and new Feng Ming, while the demand growth rate remained 6%, and the supply and demand pattern will be further improved.

And Tong Kun shares as the absolute leader of the domestic polyester filament industry, the complete industrial chain + high market share + new capacity can enable the company to fully benefit from this round of business cycle.