The growth logic of the chemical fiber industry is shifting from scale expansion to chain deepening. Hengyi Petrochemical recently announced a 4.87 billion yuan investment 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. The signal is clear: leading players are no longer satisfied with raw material market share; they are moving downstream to capture higher-value spinning margins.
Background
The project will be located in the Guangxi New Materials Industrial Park and the Yizhijin New Materials Industrial Park, funded by internal and external financing. Notably, Guangxi Hengyi New Materials currently operates a 600,000-ton annual PA6 chip production line, running at full capacity in 2026. After the new project is commissioned, the company will form a complete chain from chips to spun yarn—not just capacity addition but a strategic shift in business focus.
Hengyi's self-developed PA6 melt direct spinning technology is the core of this investment. Compared with traditional batch chip spinning, this process reduces water consumption by about 80% and electricity consumption by 30%, while eliminating chip packaging, warehousing, and transport steps. This means significantly lower unit production costs, especially under energy intensity controls and carbon border taxes, making such low-carbon processes increasingly competitive.
Industry Impact
For the nylon chain, the release of 400,000 tons of melt direct spinning capacity will directly alter the supply-demand balance in PA6 spinning. Previously, chip spinners had to purchase chips and then process them; now integrated players can produce and use at lower cost, squeezing middlemen. Buyers still relying on traditional chip purchasing may face cost disadvantages.
Geographically, the dual bases in Guangxi and Hangzhou are strategic. Guangxi is close to raw material sources and Southeast Asian markets, offering logistics cost advantages; Hangzhou is near downstream fabric and garment clusters, enabling faster response to customer needs. This dual layout strengthens Hengyi's bargaining power in regional supply chains, and surrounding small spinners may face intensified competition.
Moreover, the project aligns with the industry's high-end and green direction. PA6, as a high-performance fiber material, sees strong demand in automotive lightweighting, electronics, outdoor gear, and more. By reducing energy use and emissions through self-developed processes, Hengyi meets environmental regulations and can gain green premiums in export markets. For peers, this sets a new technical and cost benchmark.