After investing 10 billion yuan in Ningbo to establish China's first privately-funded 600,000-ton-per-year PTA (purified terephthalic acid) project, Zhejiang Hengyi Group, a leading textile company in China, and Zhejiang Rongsheng Group have once again joined forces. This time, they are expanding their operations northward to Dalian, focusing on petrochemical investments. The two companies are partnering with Heilongjiang Longdi Co., Ltd. and Dalian Dahua Group Co., Ltd. to develop a new terephthalic acid project within the Dalian Development Zone. On September 10, the four companies officially signed a joint venture agreement and an investment contract.
The total investment for this project amounts to 3.6 billion yuan. According to the plan, the construction period will last 24 months. The first phase of the project is expected to produce 500,000 tons annually, with the final capacity reaching 1.2 million tons per year. PTA is a key raw material used in the production of polyester chips and fibers, making it a crucial upstream component of the petrochemical industry. In the first seven months of this year, the average price of PTA has risen, and the market has experienced a tight supply situation.
Amid a general decline in profitability across the chemical fiber industry, the petrochemical upstream sector has become a new focal point for major private chemical fiber enterprises from Zhejiang. Both Zhejiang Hengyi and Zhejiang Rongsheng are top players in the region’s chemical fiber industry. Hengyi Group currently has total assets of nearly 5 billion yuan and employs over 4,000 people. Zhejiang Rongsheng Chemical Fiber Group has evolved from traditional weaving into integrated petrochemical development, employing more than 3,000 people and holding total assets of 4 billion yuan.
The project has attracted attention from the National Development and Reform Commission and has been included in the national revitalization plan for the old industrial base in Northeast China, receiving government debt support. Notably, this project not only fills a gap in Dalian’s petrochemical industry but also marks a significant breakthrough in the northeastern petrochemical system, which has historically been dominated by state-owned enterprises.
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