Thread Content
On March 24, Dongfang Shenghong issued two announcements in succession, planning to build two projects with a total investment of over 14 billion yuan. Orient Sheng Hong announced that Lianyungang Hongke New Materials Co., Ltd., a third-level holding subsidiary, plans to invest in the construction of the biodegradable materials project (Phase I). The total investment for the project is 7.471 billion yuan, with a construction period of 3 years. It is planned to build a maleic anhydride plant with an annual capacity of 340,000 tons, a BDO plant with an annual capacity of 300,000 tons, a PBAT plant with an annual capacity of 180,000 tons, as well as various supporting facilities. The announcement states that this project is a complementary component to Shenghong Refining & Chemicals (Lianyungang) Co., Ltd.’s 16-million-ton refining and chemical integration project. Butane produced by that integration project is used as raw material for further processing; 1,4-butanediol is manufactured using the maleic anhydride method. Combined with PTA produced by the company’s wholly-owned subsidiary, Jiangsu Honggang Petrochemical Co., Ltd., PBAT biodegradable materials are produced, thereby extending the industrial chain downstream and increasing the added value of the products. This enhances the company’s overall competitiveness and profitability. Another announcement from Dongfang Shenghong indicates that its wholly-owned subsidiary, Honghai New Materials (Suqian) Co., Ltd., plans to build a facility capable of producing 1 million tons per year of intelligent functional fibers. The total investment for the project is 6.655 billion yuan, with construction carried out in two phases, each lasting two years. The project aims to produce 1 million tons per year of intelligent functional fibers, including 42 POY (pre-oriented yarn) production lines, 6 FDY (fully drawn yarn) production lines, as well as manufacturing facilities and auxiliary supporting systems. According to the announcement, this project is also a supporting facility in the downstream industrial chain of Shenghong Refining and Chemical’s 16-million-ton integrated refining and chemical project.