Px-pta-polyester industrial chain will be expanded in the whole line

At present, China's chemical fiber industry can be described as a group of powerful, occupy all aspects of the world. In the south, there are two heroes of Xiaoshan, Rongsheng and Hengyi; in the north, there are two heroes of Shengze, Hengli and Shenghong; in the middle, there are two heroes of Tongxiang, xinfengming and Tongkun. Let's talk about Hengyi Petrochemical at the present stage. As one of the six private chemical fiber giants, Hengyi Petrochemical's expansion strength is no less than that of Hengli, Tongkun, Rongsheng and other competitors. In recent years, it is far ahead in the expansion of PTA and downstream polyester fields. Since 2012, the prosperity of the chemical fiber industry has declined, some enterprises have gone bankrupt due to the broken capital chain, the overall supply of polyester filament is far greater than the demand, and the structure of supply and demand is unbalanced, but at the same time, it can be found that the apparent demand of polyester filament is rising steadily.

Aiming at the supply side reform wave of various industries, Hengyi has set up industrial merger and acquisition fund, acquired three polyester factories of Jiangsu Longteng, Jiangsu Minghui and Hangzhou Hongjian by means of bankruptcy auction, and then integrated 4 million tons of chemical fiber capacity by means of equity acquisition and share issuance. According to incomplete statistics, since 2017, Hengyi Petrochemical has carried out seven acquisitions to expand its polyester production capacity, with a total amount of 6.477 billion yuan. In addition to the investment of about 16 billion yuan in the first phase of Brunei refining and chemical project and the production increase plan of 6 million tons / year PTA of Yisheng new material, Hengyi Petrochemical's expansion in the whole chemical fiber industry chain has been a big undertaking. Based on the integrated production capacity, Hengyi accounts for about 17% of polyester production capacity. Hengyi factory is based in Xiaoshao area. At the same time, it also has factory layout in Jiangsu and Fujian provinces where the textile industry is developed. It can effectively radiate more than 10000 customers in Anhui, Jiangsu, Zhejiang, Fujian, Guangdong and other textile and garment industries. Hengyi has a wide resource network in various production and sales areas and strong ability to integrate upstream and downstream resources. At the same time, like Hengli, Tongkun and Rongsheng, Hengyi Petrochemical also chose to enter the upstream refining and chemical industry, so as to obtain the upstream raw material PX of the chemical fiber industry chain and get through the px-pta-polyester industry chain.

PX is an important raw material in the upstream of the chemical fiber industry chain. Due to many reasons, the domestic PX production capacity has been seriously insufficient. In 2017, the external dependence was nearly 60%. PX has been in a state of short supply for a long time. High price also erodes the profits of PTA products. To solve this problem will reduce Hengyi's dependence on outsourcing PX and improve its performance. Although Hengyi Petrochemical's construction project is only 8 million tons / year, and its scale is far smaller than that of Zhejiang Petrochemical, a joint venture of Hengli petrochemical, Rongsheng and Tongkun, its actual investment amount is not a small number. Public information shows that the total investment of Hengyi Brunei project is 15 billion US dollars, including 3.45 billion US dollars in the first phase and 10 billion US dollars in the second phase. Hengyi Petrochemical Co., Ltd. holds 70% of the shares in the project, which is calculated according to the US dollar exchange rate of 7.0, that is to say, 65.87 billion yuan will be invested. The investment amount of the first phase of the project is up to 16 billion yuan. However, among the four private refining and chemical giants, Hengyi Petrochemical's investment in refining and chemical industry is the latest. The competitor has been put into production ahead of time, and the profit will be included in the bag.

In May this year, with Hengli 20 million tons / year refining and chemical integration project wholly-owned by Hengli Petrochemical taking the lead in the industry and entering the performance contribution period, benefiting from the continuous, stable and efficient operation after the refinery is put into operation, large-scale refining and chemical assets in the second and third quarters have become the main driving force to promote the rapid growth of the operation scale and significant improvement of the profitability of listed companies. Hengli Petrochemical announced the third quarter report of 2019. In the first three quarters, the company realized an operating revenue of 76.329 billion yuan, a substantial increase of 74.14% year-on-year, and realized a net profit of 6.817 billion yuan belonging to shareholders of listed companies, an increase of 86.64% year-on-year. Both Zhejiang Petrochemical and Hengli Petrochemical are ahead of Hengyi's production and refining projects. The huge PX production capacity of the two enterprises has been put into the market. In addition, the new PX production capacity in China shows a blowout growth. Hengyi Brunei project has not been put into production. The profitability of PX has declined. The profits of the industrial chain have been transferred from the upstream PX to the downstream PTA and polyester. All links of "px-pta-polyester" industrial chain have been added. Can Hengyi Petrochemical's heavy bet on the whole industrial chain of chemical fiber usher in the dawn? According to the announcement issued by Hengyi Petrochemical on November 3, its refining and chemical project in Brunei has been put into production. In the 2019 annual financial report, Hengyi Petrochemical will hand in its first answer sheet. Expansion has not yet turned into a convincing performance, and we are looking forward to the amazing take-off of Hengyi petrochemical project after its implementation!