An additional 8.6 million tons per year will be added, resulting in steady growth in China’s PTA production capacity by 2025

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Domestic PTA capacity will see steady growth in 2025. The capacity of the domestic purified terephthalic acid (PTA) industry is set to increase steadily in 2025, with the addition of new production capacity, the retirement of older facilities, and optimizations to existing capacity all contributing to continuous changes in the structure of this industry. Provide stable support for the downstream textile and fiber industry. I. New production capacity is released in large volumes, with leading companies playing a key role. In 2025, the total new PTA production capacity in China will reach 8.6 million tons per year, coming mainly from new plants built by three leading companies: Honggang Petrochemical – its new plant with a capacity of 2.4 million tons per year began operations on June 7, with output starting on June 9, thus achieving successful commissioning ； Sanfang Lane: Two new production lines will be added this year; the first one with a capacity of 1.6 million tons per year began operations on July 30, while the second one, also with a capacity of 1.6 million tons per year, started operating around August 25. In total, this results in an additional production capacity of 3.2 million tons per year ； Dushan Energy: The new plant with a capacity of 3 million tons per year began operations on October 26. The commissioning of these large-scale facilities has injected new momentum into the capacity growth of the PTA market in the second half of the year. II. Phased retirement of old facilities and accelerated elimination of outdated production capacity. To optimize the industry structure, by 2025 some old and small PTA plants in China will be shut down on a permanent basis, resulting in a total reduction of production capacity of 4.065 million tons per year. The plants involved include Ningbo Liwan with a capacity of 700,000 tons per year, Shanghai Petroleum with 400,000 tons per year, Wuhu Petrochemical with 90,000 tons per year, Fujian Jialong with 600,000 tons per year, Yangzi Petrochemical with 950,000 tons per year, Luoyang Petrochemical with 325,000 tons per year, and Yizheng Chemical Fiber with 1 million tons per year. This measure helps reduce excess pressure in the industry and improve overall capacity utilization. III. Optimization of existing production capacity to boost efficiency and generate additional output. In addition to new facilities and those that have been taken out of service, some companies have increased their production capacity through technical upgrades or operational optimizations, resulting in an overall increase of 1.1 million tons per year: Jiatong Energy’s production capacity was increased from 5 million tons per year to 6 million tons per year, representing an increase of 1 million tons per year ； Honggang Petrochemical: Production capacity has been adjusted from 2.4 million tons per year to 2.5 million tons per year, with an increase of 100,000 tons per year. By 2025, the domestic PTA production capacity will be adjusted to 94.8 million tons per year; after taking into account new additions, adjustments, and exclusions, growth of 6.23% on a year-on-year basis will be achieved. The scaling up of new production capacity, the phasing out of outdated capacity, and the improvement in efficiency of existing capacity are all contributing to the development of China’s PTA industry in a more concentrated and efficient direction.