Hengyi Petrochemical has invested a total of 25.7 billion yuan in Xinjiang to build the world’s largest single-unit coal-based ethylene glycol production facility!

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On January 23, 2026, Hengyi Petrochemical issued a statement stating that in order to accelerate the implementation of key projects, improve the overall operational efficiency of the company, and ensure a stable supply of raw materials for the polyester industry chain, its wholly-owned subsidiary Zhejiang Hengyi Petrochemical Co., Ltd. plans to acquire 100% of the shares in Hengyi Energy Technology (Turpan) Co., Ltd., held by its parent company Zhejiang Hengyi Group Co., Ltd., for 500 million yuan in cash. Taking September 30, 2025, as the reference date, the equity appreciation rate for this transaction was only 0.33%, indicating that the transaction price is in line with the actual value of the assets. Hengyi Petrochemical stated that following the completion of this equity acquisition, the company will achieve 100% full ownership of Hengyi Energy Technology (Turpan). This move will further enhance the integrated synergy across the company’s upstream and downstream supply chains, helping to strengthen and improve its competitiveness in the industry. It is fully in line with the company’s long-term business development strategy and lays a solid foundation for future industrial expansion. It is reported that the core project under the entity that is being acquired in this deal – the coal-based ethylene glycol project – came to public attention as early as early June 2025. At that time, the Development and Reform Commission of Gaochang District in Turpan City, Xinjiang, had published a risk assessment report for Hengyi Energy Technology (Turpan) Co., Ltd.’s coal-based ethylene glycol project, marking the official start of the preliminary preparation work for this project. The project is located in the Coal-based New Materials Circular Industry Park within the Economic Development Zone of Turpan City. It was initially constructed independently by Hengyi Energy Technology (Turpan), a company wholly owned by Hengyi Group. As a major key project in the coal chemical industry, this coal-to-ethylene glycol project requires a total investment of 25.7 billion yuan, with all funds to be raised by the company itself ； The total land area of the project is 2.5375 million square meters, with a planned construction period of 36 months; it is expected to be completed and put into operation in October 2028. The core of the project involves the construction of a coal-to-ethylene glycol production facility with an annual capacity of 2.4 million tons. Meanwhile, comprehensive production auxiliary facilities, utility systems, and infrastructure related to production services are also built to create a complete production and operation system. In terms of production processes, this project will use the lignite from the Ayding Lake mining area as the main raw material, and through a series of refined and environmentally friendly production methods such as gasification and syngas production, it will ultimately produce high-purity ethylene glycol, which can be widely used in various chemical industries such as polyesters, coatings, and resins. It is worth noting that the production capacity of this project has reached a new high in the domestic industry. In terms of production capacity for ethylene glycol produced from coal, its 2.4 million tons per year exceeds the 1.8 million tons per year capacity of Shaanxi Coal Group’s Yulin Chemical project, which is dedicated to the utilization of coal in order to produce new chemical materials; as a result, it ranks among the largest coal-based ethylene glycol production projects in China ； In terms of single ethylene glycol production capacity, this project has surpassed leading companies in the industry such as Shenghong Petrochemical, Satellite Chemical, and Hengli Petrochemical, firmly taking the top position in terms of production capacity in China. Industry experts analyze that once this project is put into operation, it will provide a stable and sufficient supply of ethylene glycol for various chemical sectors such as coatings and resins in China. This will help alleviate the reliance of these industries on imported raw materials, enable an increase in the self-sufficiency rate of raw materials along the entire industrial chain, and promote the stable and healthy development of the whole chemical industry chain. The progress of the project is accelerating steadily. On December 16, 2025, the Department of Ecology and Environment of Xinjiang Uygur Autonomous Region issued a public notice stating that it intended to make a decision regarding the environmental impact assessment report for Hengyi Energy Technology (Turpan) Co., Ltd.’s project for producing 2.4 million tons per year of high-quality ethylene glycol from coal, which is used in fiber production. The release of this announcement signifies that this major coal chemical project has successfully completed the key preliminary approval steps and has officially entered the phase of actual construction.