Fosun Plastics Technology and Sinopec Hunan Petrochemical have invested in a polyamide-nylon film project in Yueyang

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Recently, Foshan Fosun Plastics Technology Co., Ltd. issued a announcement stating that, in line with its development strategy focused on new materials, and with the aim of strengthening its business in polymer functional films, expanding its nylon film operations upstream in the industrial chain, and enhancing its market competitiveness, the company plans to establish a project company jointly with Sinopec Hunan Petrochemical Co., Ltd. in Yueyang City, Hunan Province. This project company will be used to invest in the construction of a polyamide-nylon film production facility (hereinafter referred to as this project). The project company plans to have a registered capital of 960 million yuan, of which the company will contribute 576 million yuan, accounting for 60% of the shares, while Hunan Petrochemical will contribute 384 million yuan, representing 40% of the shares. After its establishment, the project company becomes a holding subsidiary of the company and is included in the company’s consolidated financial statements. The total planned investment for this project is 346,911 million yuan (including value-added tax and working capital) ； The total investment amount, excluding value-added tax and working capital, is 2.7915 billion yuan; it is used to build production lines for polyamide chips and nylon films, with the main focus on manufacturing such polyamide chips and nylon film products. 　　This project plans to invest in the construction of four production lines for polyamide 6 chips (hereinafter referred to as PA6 chips) and five production lines for nylon films (biaxially oriented nylon films, hereinafter referred to as BOPA films). It will mainly produce PA6 chips and BOPA film products, with a designed total capacity of 280,000 tons per year and 125,000 tons per year respectively. The total planned investment for this project is 346,911 million yuan (including value-added tax and working capital for operations) ； The total investment amount, excluding value-added tax and working capital for operations, is 2,791.5 million yuan. Of this amount, 2,541.82 million yuan is allocated to various assets, production equipment, and related investments; 24,968 million yuan covers funds required during the construction period as well as initial working capital; 40,854 million yuan is intended for operating working capital; and 26,907 million yuan relates to value-added tax. The site selected for this project is the Green Chemical Industry Park in Yunxi District, Yueyang City, Hunan Province. The funding for this project will be covered by the project company’s capital funds as well as external financing sources such as bank loans. The planned construction period for this project is 38 months, during which the BOPA film production line will be purchased and installed in phases, with operations starting up gradually.