Sinopec Shanghai adds 600 million yuan to a project for an annual production capacity of 30,000 tons of carbon fiber

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Shanghai Petrochemical invests 600 million yuan in a project to produce 30,000 tons of carbon fiber per year 2026-03-03 15:41:24 On February 28, Shanghai Petrochemical Co., Ltd. issued a statement indicating that its wholly-owned subsidiary, Inner Mongolia Xinjinshan Carbon Fiber Co., Ltd., had completed a public offering for capital increase. An additional registered capital of 600 million yuan has been injected, with strategic investors such as Sinopec Corporation, Wushen Banner State Investment Group, Dongfang Wind Power, and CCB Investment being brought in. After the capital increase, the registered capital of the carbon fiber company increased from 600 million yuan to 1.2 billion yuan, while Shanghai Petrochemical’s shareholding ratio was reduced from 100% to 50%. From an industrial perspective, carbon fiber is a typical material that requires significant capital investment and high technical expertise. In the development of large-scale projects, there are high demands regarding the availability of upstream raw materials, engineering capabilities, and coordination with downstream applications. Against the backdrop of the industry entering a phase of structural differentiation, the integration of various strategic resources has become an important approach for advancing projects. The project of Inner Mongolia Xinjinshan Carbon Fiber Co., Ltd. is located in Inner Mongolia, where large-scale production lines are established by taking advantage of the local energy resources and supporting infrastructure. In terms of product focus, its target markets include pultruded sheets for wind turbine blades, materials for transportation, as well as composite materials used in energy storage applications; this means that in the initial stage of the project, medium-to-high strength products will be the main focus, with an emphasis on applications that require large-scale use of such products. In the domestic market, wind power remains one of the key sectors driving demand for carbon fiber. As the power of onshore and offshore wind turbines continues to increase and blade lengths grow, there is a persistent demand for lightweight materials. Pultruded sheets have become an important material form for blade spars, requiring a high capacity for the supply of carbon fibers. With this capital increase, the involvement of Sinopec means that the project will receive stronger support in terms of raw materials, polymerization, project construction, and supporting resources. The upstream part of the carbon fiber industry chain uses acrylonitrile (PAN) as the main raw material, and the petrochemical sector has inherent advantages in terms of stable supply of raw materials and process integration. For ten-thousand-ton projects, raw material availability and energy cost control directly affect the unit manufacturing cost. On the other hand, the involvement of Dongfang Wind Power fosters a closer connection between the downstream application side and the material side. Wind turbine blade manufacturers have high requirements for the consistency of carbon fiber properties and the stability of supply; the entry of industrial capital helps to shorten the material verification process and improve the efficiency of matching these materials for practical use. From 2023 to 2024, the domestic carbon fiber industry went through a period of falling prices and declining capacity utilization. Some companies are facing inventory pressure and shrinking profits. Pushing forward with a 30,000-ton project in this context indicates that the company remains cautiously optimistic about medium- to long-term demand.