While most chemical fiber companies tread cautiously on the thin ice of chip spinning margins, Hengyi Petrochemical has pushed nylon industry competition to a new dimension with a 4.87 billion yuan investment. In August 2026, the polyester and nylon dual-track leader announced plans to build a 400,000-ton annual PA6 melt direct spinning project through its subsidiaries Guangxi Hengyi New Materials and Hangzhou Yizhijin New Materials, with an 18-month construction period. Such scale is rare in the domestic melt direct spinning field, and the signal it sends extends far beyond the project itself.
Background
In terms of production capacity, Guangxi Hengyi New Materials currently operates a 600,000-ton annual PA6 chip plant, which remains at full capacity throughout 2026. This means the new project is not starting from scratch but represents a value chain extension built on stable raw material supply. The choice of melt direct spinning over traditional chip spinning is core to the process advantage: self-developed technology cuts water consumption by about 80% and electricity by 30%, while eliminating intermediate steps such as chip packaging, warehousing, and transportation. In an era of narrowing spreads between nylon chips and spinning, every kilogram of cost savings can translate into substantial profit margins.
The site selection in Guangxi and Hangzhou also reflects industrial logic. Guangxi is close to raw materials and energy sources, suitable for large-scale production; Hangzhou is near downstream markets and R&D resources, enabling rapid response to customer needs. This dual-base model diversifies regional risks and strengthens supply chain resilience. For buyers, this means future PA6 spinning supply may become more stable, but they also need to balance logistics and lead times across regions.
Industry Impact
Hengyi's move essentially extends competition from the chip segment to the spinning segment. In the past, the PA6 chip market was mature with transparent prices and thin margins; melt direct spinning bypasses chip trading, allowing companies to produce nylon fiber at lower costs, forcing traditional chip spinning enterprises to reassess their competitiveness. For downstream weaving and garment companies, lower raw material costs may transmit to fabric prices, but more critically, supply stability and quality consistency will improve.
From an industry trend perspective, the chemical fiber sector is accelerating toward high-end, green, and low-carbon transformation, and PA6 melt direct spinning is a typical representative. Hengyi's layout is not an isolated case; leading companies are adding new material tracks, indicating that the capacity structure of the nylon industry chain will undergo significant changes in the coming years. New capacity may intensify competition in mid-to-low-end spinning, but it also provides a cost basis for high-value-added products such as functional nylon and differential fibers. For foreign trade enterprises, this means that if export products still rely on conventional PA6 chip-spun yarns, they may face dual pressure on price and orders.
Notably, the project funds are raised through internal and external financing, and an 18-month construction period is not long for chemical projects. This reflects the company's judgment on the market window—nylon downstream demand is still recovering, but high-end supply has gaps. If the project is completed on schedule, the market will see a new wave of supply around 2028, and price trends will depend on the strength of demand recovery and the speed of digesting new capacity.