Latest News: Recently, Tongkun announced that it plans to start two chemical projects. As a large private refining and chemical enterprise, the company's investment and construction projects cover ethylene glycol in the upstream of the industrial chain and chemical fiber products in the downstream, which will further enrich the company's industrial chain.
Among them, Tongkun shares plans to invest 9.942 billion yuan to build a natural gas-to-ethylene glycol project, and plans to invest 5.765 billion yuan to build a lightweight comfortable functional differentiated fiber project. A total of about 15.7 billion yuan is planned to be invested in the two chemical projects. The construction period of the project is 3 years.
In both announcements, Tongkun shares stated that it was "taking into account the company's subsequent development and optimizing the allocation of various resources in order to improve the profitability of the company in the future".
Specifically, for the ethylene glycol project, Tongkun Co., Ltd. will start its subsidiary Xinjiang Zhongkun New Materials Company as the construction unit. The site is located in Korla Petroleum and Petrochemical Industrial Park, Bazhou, Xinjiang. The project plans to requisition 1,397 mu of new land. Natural gas is used as raw material. After desulfurization and purification, it can pass through POX. It is converted to produce syngas, and carbon dioxide is removed through NCMA, and then enters into cryogenic separation and pressure swing adsorption to separate out carbon monoxide and hydrogen, which are sent to dimethyl oxalate unit and ethylene glycol unit respectively to produce ethylene glycol, and finally form an annual output of 120 10,000 tons of ethylene glycol production capacity.
Judging from the company's demand for ethylene glycol, Tongkun now has an annual production and processing capacity of 10 million tons of crude oil processing rights, 4.2 million tons of PTA, 8.1 million tons of polymerization, and 8.6 million tons of polyester filament. It is estimated that by the end of the "14th Five-Year Plan", the polyester production capacity will reach 10 million tons/year. based on this calculation, Tongkun's ethylene glycol demand will exceed 3 million tons per year at the end of the "14th Five-Year Plan".
The announcement shows that at present, the raw material ethylene glycol required by Tongkun Co., Ltd. polyester all relies on market procurement. The traditional production method of ethylene glycol is to take the petrochemical route, That is, ethylene is obtained from petroleum processing, ethylene oxide is oxidized to generate ethylene oxide, and ethylene oxide is further hydrated to produce ethylene glycol. based on this, the company believes that with the increasing shortage of oil resources in the world, opening up a new process route has become a top priority.
In terms of economic benefits, Tongkun Co., Ltd. predicts that the ethylene glycol project will achieve an output value of about 5 billion yuan after the completion of the project, and contribute about 510 million yuan in taxes to the state and local governments each year.
Look again at the functional differentiated fiber project. The project implementation unit is Anhui Youshun New Material Co., Ltd., a wholly-owned subsidiary of Tongkun Co., Ltd., located in Longqiao Chemical Park, Lujiang High-tech Industrial Development Zone, Hefei, Anhui Province. According to the plan, an annual production capacity of 1.2 million tons of lightweight and comfortable functional differentiated fibers and 3,168 tons of acetaldehyde will be formed. Leading products include lightweight differentiated functional POY fibers and differentiated functional FDY fibers.
After the implementation of the project, the fiber products produced by Anhui Youshun are positioned in differentiated and high-end varieties, among which special products include flame retardant fibers, dope dyed fibers and other products, which can be applied to high-end medical and health protection products, emergency and safety protection textiles, High-performance filter materials, high-performance geotextile materials and other fields.
The announcement shows that the project mainly combines the demand for textile products in the local Anhui market. Tongkun Co., Ltd. said that after the implementation of the project, it will select key equipment and automated production equipment such as polyester and spinning with international advanced level, and make use of the market support that has been formed in the surrounding areas and the rich local human resources to build new fiber materials. The production base can greatly improve the technical equipment level of the local textile industry, increase the proportion of functional differentiated fiber products and market shares at home and abroad, and enhance the competitiveness of Anhui's textile industry in the international market.
In 2021, Tongkun shares will see a sharp increase in performance as both volume and price rise. However, in 2022, the sharp rise in oil prices has caused the price increase of the main raw material PX/PTA to be higher than that of the products, and the company's performance in the first quarter of this year has experienced a year-on-year decline.