Huafeng Chemical: Plans to invest in construction of spandex industry chain deepening project

Huafeng Chemical announced that the 15th meeting of the eighth board of directors reviewed and approved the “Proposal to Invest in the Construction of a PTMEG Spandex Industry Chain Deepening Project with an Annual Output of 120,000 tons” and plans to adopt its wholly-owned subsidiary Huafeng Chongqing Biomaterials Co., Ltd. invested 2.04 million yuan to build a PTMEG spandex industry chain deepening project with an annual output of 120,000 tons.

Project background

The main products of the PTMEG spandex industry chain deepening project with an annual output of 120,000 tons are
PTMEG, the full name of tetrahydrofuran homopolyether, is a bulk chemical product. It is a homopolymer obtained by cationic ring-opening polymerization of the monomer tetrahydrofuran (THF). It is a linear polyether diol with primary hydroxyl end groups. It is a white waxy solid at room temperature and becomes a transparent, colorless liquid after melting. . PTMEG
Mainly used in the production of spandex, polyurethane elastomer and ester-ether copolymer elastomer. PTMEG’s downstream industries are mainly spandex, followed by polyurethane elastomers and ester-ether copolymer elastomers.

Overall, my country’s PTMEG market industry supply and demand are relatively balanced at present, and the growth rate of production capacity has basically kept pace with the growth rate of downstream spandex production capacity. There has been no obvious surplus. Especially in recent years, the downstream spandex field has continued to expand, and the market has continued to expand.
PTMEG demand maintains steady growth. In the industry, the company’s spandex production scale is large, it is supported by the polyurethane industry, and has strong competitive advantages in the industry chain.

The company has been deeply involved in the chemical industry for many years. It has always attached great importance to technology research and development investment, adhered to innovative development, independently researched and developed new products, new processes and new technologies, and cultivated a group of professional and technical talents and management teams with solid knowledge and rich practical experience. In addition, the company has established a relatively complete talent training and introduction mechanism, which can continuously attract high-quality and high-level talents and ensure the smooth implementation of this project.

This project fully absorbs domestic and foreign PTMEG
On the basis of advanced production technology, the process route has been adjusted and optimized to achieve independent technology transformation. The production equipment is at the leading level in the industry in terms of scale and energy consumption.

Basic information on investment targets

1. Project name: PTMEG spandex industry chain deepening project with an annual output of 120,000 tons

2. Project investment and construction unit: Huafeng Chongqing Biomaterials Co., Ltd.

3. Project investment estimate and funding source: The total investment is estimated to be 2.04 billion yuan, and the funding source is self-financing. The final investment amount and construction period are subject to the actual situation after the project is implemented.

4. Project construction period: Estimated 36
months (finally subject to the actual progress of project construction). The implementation progress of the project will be adjusted in a timely manner based on market demand, operating conditions and the comprehensive evaluation of the board of directors, and will be disclosed in accordance with relevant laws and regulations.

5. Project content and scale: 120,000 tons/year PTMEG unit; supporting process equipment, public works and auxiliary facilities, etc.

6. Process technology: It is planned to use BDO cyclization and dehydration to produce PTMEG

7. Project location: Baitao Chemical Park, Fuling District, Chongqing.

8. Project payback period: The total investment is 2.04 billion yuan. The static investment payback period (after tax) after the project is completed and reaches production is 4.8 years (excluding the construction period).

Since the project is still in the early planning stage, there are uncertainties in the implementation of the project and the project benefits need to be further demonstrated. Market changes have led to uncertainty in the project benefits. Investors are advised to pay attention to investment risks.