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On the evening of May 15, Hengyi Petrochemical issued a announcement stating that its subsidiary, Hengyi Energy Technology (Turpan) Co., Ltd. (hereinafter referred to as “Hengyi Turpan”), plans to invest in the construction of a project to produce 2.4 million tons per year of high-quality ethylene glycol derived from coal, for use in fiber production. The total estimated investment for the project is 25.7 billion yuan. It will be constructed in the Coal-Based New Materials Recycling Industrial Park within the Turpan Economic Development Zone. The construction scope includes the production of 2.4 million tons per year of coal-derived ethylene glycol for high-quality fibers, along with supporting production facilities, auxiliary production equipment, and utility systems. Additionally, infrastructure for production services will be established, including gasification units, purification units, H2/CO separation units, ammonia synthesis units, nitric acid production units, DMO production units, ethylene glycol production units, and air separation units. Hengyi Petrochemical stated that investing in coal-to-ethylene glycol projects in Xinjiang is not only a crucial step toward moving up the value chain of the polyester industry and ensuring control over raw material supplies, but it is also a strategic choice aimed at diversifying raw material sources, reducing the impact of fluctuations in crude oil prices, and enhancing the profitability resilience of the entire industry chain. Once the project is put into operation in the first half of 2028, the company will achieve diversification in the sources of raw materials used for processing as well as integration of raw materials for its products. This will create a unique industrial structure in the industry, one that incorporates oil, coal, and fabric all together, thereby helping the company to move away from its reliance on crude oil alone. It will also enhance the stability and predictability of profits across the entire value chain, significantly improving the company’s profitability and its ability to withstand risks.