Shanghai Petrochemical invests 600 million yuan to boost its carbon fiber project in Inner Mongolia

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Recently, Inner Mongolia Xinjinshan, a wholly-owned subsidiary of Shanghai Petrochemical, increased its registered capital by 600 million yuan. By combining private agreements with public offerings, it attracted capital from various parties including Sinopec and Wushen Banner State Investment Group. This move aims to boost investment in the 30,000-ton large-tow carbon fiber project, which is already in the production preparation phase in Ordos. In February 2026, the first phase of the off-site construction project for Shanghai Petrochemical’s plant capable of producing 30,000 tons of large-tow carbon fiber was mechanically completed one month ahead of schedule, and the site officially entered the production preparation phase. The construction phase 1 includes 2 production lines, with an overall annual production capacity of 6,000 tons; it is expected to go into full operation in the second quarter of 2026. Construction of the project began in full scale in July 2025. Located in Ordos City, Inner Mongolia, it is one of the key projects in the region, and its implementation is carried out by Inner Mongolia Xinjinshan Carbon Fiber Co., Ltd., a subsidiary of Shanghai Petrochemical. The project makes full use of the patented large-tow carbon fiber technology independently developed by Shanghai Petrochemical, and takes advantage of the abundant green energy resources in Inner Mongolia. It focuses on the large-scale production of large-tow carbon fibers in specifications such as 48K and 60K, providing key raw materials for new energy industries such as wind power, thereby contributing significantly to the implementation of the **\"dual carbon\" strategy and the advancement of the localization of high-end materials. This 30,000-ton capacity project located in Ordos plans to have 10 production lines in total. In the second quarter of this year, the first phase with a capacity of 6,000 tons will begin operations, with full completion expected by the end of 2027. Sinopec Shanghai stated that this capital injection serves both to provide support for the research, development, and production of new products, as well as to facilitate breakthroughs in the field of advanced materials through industrial collaboration. The involvement of Sinopec Corporation will further accelerate technological advancements and the integration of the industrial chain. As a leader in the field of large-tow carbon fibers, Shanghai Petrochemical has long mastered the core technologies and possesses production capabilities for various grades such as 24K, 48K, and 60K. Its 48K material specifically designed for wind turbines has been used in 131-meter-long onshore wind turbine blades. The 60K product to be introduced in 2025 boasts a strength of over 4.9 GPa, making it suitable for use in deep-sea wind turbines in the future.