Local Hot Spot: Spandex Fiber Project Of Xinxiang Chemical Fiber Co., Ltd

      Xinxiang Chemical Fiber Co., Ltd. (hereinafter referred to as "Xinxiang Chemical fiber") announced in the evening today (February 28) that in order to make full use of the company's spandex fiber production resources, optimize the company's product structure and stabilize the production scale of spandex fiber, the company plans to implement the second phase project of the annual output of 100000 tons of high-quality ultra-fine denier spandex fiber project, and the project construction site is located in the national Xinxiang economy The technology development zone is planned to start in the second quarter of 2021, with a construction period of 18 months and a total investment of 1.018 billion yuan, including 962 million yuan of construction investment, 14.7 million yuan of financial expenses during the construction period, and 40.6 million yuan of working capital.

It is estimated that the new sales revenue will be 1.06 billion yuan and the new sales profit will be 184 million yuan.

Xinxiang Chemical fiber said that with the rapid development of textile science and technology, new processes and new technologies of spandex and its products are constantly emerging, which makes spandex continue to expand in traditional application fields such as knitwear, underwear, sportswear, warp knitted fabric, weft knitted fabric, casual wear, elastic jeans, high-grade ready-made clothes and other emerging application fields are also growing rapidly, becoming spandex The main driving force of the rapid growth of market demand.

The first textile network learned here that spandex is the abbreviation of polyurethane fiber. It was first developed by Bayer in Germany in the 1930s. DuPont in the United States first realized industrial production in 1959, and the trade name is "Lycra". As a small amount of chemical fiber can significantly improve the elasticity, strength and comfort of products, spandex is also known as "industrial monosodium glutamate".

China is the largest spandex producer and consumer in the world. In recent years, China's spandex production capacity has also maintained a rapid growth. At present, China's spandex production capacity is 894000 tons, with a year-on-year growth rate of 4.0%. According to the statistics of the industry association, China's Spandex output will be about 800000 tons in 2020, with an average operating rate of about 90%. In 2020, the apparent consumption of spandex in China will be about 750000 tons, an increase of 8.3% over the same period of last year. On the one hand, the demand for polyurethane fiber from epidemic prevention materials will be driven, and on the other hand, the downstream export will increase rapidly.

Yang Lin, an analyst at Guoxin Securities, said that with the continuous improvement of consumers' requirements for product comfort, the resilience, sweat resistance and seawater resistance of spandex are far from meeting the requirements. It is the general trend to develop high-grade spandex with high performance, differentiation and functionalization. On the demand side, from 72000 tons in 2015 to 2019, China's differentiated spandex market demand reached 174000 tons, with an average annual compound growth rate of 24.7%; on the supply side, from 51000 tons in 2015 to 2019, China's differentiated spandex output reached 145000 tons, with an average annual compound growth rate of 29.9%, and the proportion of differentiated spandex output increased from 9.8% in 2015 Up to 20.1% in 2019.

Data from the market shows that at present, the prosperity of the spandex industry continues to improve. Since August 2020, the price of spandex 40d has risen from 28000 yuan / ton to 53000 yuan / ton, with an increase of 89.3%. The price difference of spandex 40d has increased from 15000 yuan / ton to 27000 yuan / ton, with an increase of 80.0%. Spandex manufacturers have significantly de stocked and the inventory level is at a low point in nearly four years.

Yang Lin believes that at present, textile inventory year-on-year in the historical cycle of the low point. With the upgrading of clothing consumption and the alleviation of the epidemic situation, the textile industry will gradually recover, and the downstream will gradually increase the inventory in the future, which will drive the demand growth of spandex. It is expected that with the gradual recovery of the textile industry, the demand for spandex will be increasing, and the scale of spandex export will be further increased. In 2021, the demand for spandex will continue to maintain a high growth momentum. However, it should also be noted that the risk factors lie in whether the international follow-up development of the epidemic can be expected, and the economic recovery, consumption policies and Sino US relations of countries after the end of the epidemic may affect the downstream market demand of spandex in China.

      According to the public information, Xinxiang Chemical Fiber Factory (now renamed as Xinxiang Bailu Investment Group Co., Ltd.) was established in March 1993 by Xinxiang Chemical Fiber Factory (now renamed as Xinxiang Bailu Investment Group Co., Ltd.) as the exclusive sponsor. The company is a large-scale textile raw material production enterprise in China, mainly engaged in the production and sales of viscose filament, viscose staple fiber and spandex. At present, the annual production capacity of the company's chemical fiber is renewable fiber Weisu filament 100000 tons, spandex 120000 tons. It has the world's advanced continuous spinning production line of regenerated cellulose filament, advanced equipment and continuous polymerization dry spinning spandex production line with advanced technology. The production capacity of viscose filament is among the world's leading products.

According to the financial report, in the first three quarters of 2020, Xinxiang Chemical fiber realized a business income of 2.96 billion yuan, a year-on-year decrease of 17.26%; the net profit attributable to shareholders of listed companies was 25.38 million yuan, a year-on-year decrease of 74.76%. The basic earnings per share is 0.0202 yuan.

As of the first textile network this evening, Xinxiang Chemical fiber last trading day closed at 4.26 yuan / share. 33%, with a market value of 5.358 billion yuan.