The project to produce 2 million tons of differentiated cellulose fibers per year at the Jinguang Yancheng Circular Economy Industrial Base

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I. Overall Overview of the Project The full name of this project is the 2 million-ton per year differentiated cellulose fiber production facility at the Jinko Yancheng Circular Economy Industrial Base. It was invested and constructed by Jinko Fiber (Jiangsu) Co., Ltd., a subsidiary of the Indonesian Jinko Group, and is located in the Binhai Port Industrial Park in the Huanghai New Area of Yancheng, Jiangsu. The project is a **major foreign investment project**, and also the foreign-funded industrial project in Yancheng City with the largest individual investment scale. Investment scale: The total investment in the project is 77.6 billion yuan, with a planned land area of over 10,000 mu ； The first phase of one of these projects requires an investment of 10.6 billion yuan, covers an area of 3,000 mu, and has a total construction area of approximately 710,000 square meters. Construction plan: The project adopts a phased construction approach, with a target capacity of 2 million tons per year in the production of differentiated cellulose fibers. It also includes facilities for high-end textiles, energy and environmental protection, cogeneration, utility services, and wastewater treatment, covering the entire value chain. In the first phase of the first stage, 4 high-end production lines will be built, resulting in an annual production capacity of 500,000 tons of differentiated cellulose fibers. Product applications: Focusing on high-value, differentiated, and functional cellulose fibers, these products are widely used in high-end apparel, home textiles, sanitary materials, and medical supplies. Economic benefits: Once the first phase of Phase 1 is put into operation, it is expected to generate annual revenues of around 12 billion yuan and annual tax revenues of 750 million yuan ； Once fully completed, the project will be able to generate an annual output value of 80 billion yuan, aiming to become a world-leading manufacturing hub for cellulose fibers. Construction period: The overall construction period spans from the fourth quarter of 2021 to the fourth quarter of 2026. II. Bidding Situation: For the preliminary procedures, the first public announcement regarding the project’s environmental impact assessment was made in July 2020; the preparation of the environmental impact assessment report was completed and submitted for approval in 2021. At the same time, bidding processes for related tasks such as project feasibility studies and survey design were carried out. Tender for civil engineering works: In December 2025, a tender announcement will be issued for the civil engineering works of the project as well as those related to the sewage treatment plant; bidders are required to have a general contracting qualification in building construction at level 1 or above. Tendering for installation and related works: Tendering for equipment, piping, and electrical installation works will be carried out gradually starting from 2022 ； In December 2025, a tender was issued for the fiberglass process pipeline project in the fiber factory, covering key construction aspects such as process pipelines and mechanical and electrical installations. General contract bidding: China 19th Metallurgical Group Co., Ltd. was selected as the general contractor for Phase 1, Stage 1 of the project, to oversee the overall construction and management efforts. III. Construction Progress: Preliminary preparations: Preliminary preparations, land grading, and planning approvals were initiated in 2021 ； On March 25, 2026, the pre-approval public notice for the construction project plan was completed, thereby finalizing all the preliminary approval procedures required for construction. Official commencement: On March 17, 2026, the construction of the first phase of Phase 1 of the project, which aims to produce 500,000 tons per year of differentiated cellulose fibers, officially began. Current progress: Starting from April 2026, the project will enter full construction peak phase. On-site, ground leveling, pile foundation construction, and foundation excavation work are carried out simultaneously, with multiple tasks progressing in parallel. Subsequently, the construction of the main factory building and the installation of production equipment will be carried out in phases. IV. Significance of the Project: At the level of industrial upgrading, it aims to address the shortcomings in the supply chain of high-end bio-based fiber industries in the Yangtze River Delta region, by establishing an integrated industrial chain that covers pulp production, fiber manufacturing, and textile processing. This will help Yancheng develop a textile new materials industry cluster worth hundreds of billions of yuan, thereby enabling Yancheng to transition from a major textile city to a strong one in this sector. At the regional development level: As a major port-related industrial project in the northern part of the Yangtze River Delta, it aims to stimulate the development of coastal port-related industries in Yancheng, enhance the competitiveness of the region’s high-end new materials industry, and contribute to the coordinated upgrading of industries in the Yangtze River Delta. In terms of green development: Advanced international clean production technologies are adopted, and a circular economy development model is implemented to achieve low-energy consumption and low-emission production, thereby facilitating the green and low-carbon transformation of China’s textile industry. Economic and employment aspects: Once completed, the project will foster the development of related industries such as weaving, home textiles, and medical supplies, creating numerous job opportunities. It will also contribute to an increase in local tax revenues, further strengthening the framework for foreign investment in China. At the industry strategy level: Establish a globally leading and technologically advanced manufacturing base for cellulose fibers, thereby significantly enhancing China’s competitiveness and influence in the international market for functional cellulose fibers.