The cost logic of the chemical fiber industry is being rewritten by a process: Hengyi Petrochemical announced a 4.87 billion yuan investment in a 400,000-ton PA6 melt direct spinning project, with self-developed technology that cuts water consumption by about 80% and electricity by 30%. While most players still compete on scale in the pellet spinning track, leading companies are using process gaps to draw new competitive boundaries.
Background
The investment will be implemented through two subsidiaries, Guangxi Hengyi New Materials and Hangzhou Yizhijin New Materials, located in the Guangxi New Materials Industrial Park and the Yizhijin New Materials Industrial Park respectively. The construction period is planned at 18 months, with funds raised from internal resources and external financing. Notably, Guangxi Hengyi's existing 600,000-ton PA6 pellet unit operated at full capacity in 2026, providing stable raw material support and capacity synergy for the new project.
Technically, melt direct spinning eliminates intermediate steps such as pellet packaging, warehousing, and transportation, meaning polymerization and spinning are completed on a continuous line. This not only compresses overall production costs but also significantly reduces pollutant and waste emissions. For the industry, this is not just a single company's expansion but a systematic challenge to the traditional batch pellet spinning process—when water and electricity consumption drop dramatically, existing cost accounting systems will be completely overturned.
Industry Impact
Once operational, this project will extend Hengyi's business from PA6 pellet raw materials to downstream spinning, filling a key link in the nylon chain. For buyers, this means new variables in PA6 fiber supply: integrated players' cost advantages may translate into more competitive pricing, while spinning mills relying on external pellet purchases face the risk of being squeezed on raw material costs.
From an industry trend perspective, the chemical fiber sector is accelerating toward high-end, green, and low-carbon upgrades. PA6, as a high-performance fiber material, has become a core track for leading companies to build growth curves. Hengyi's dual-track layout in polyester and nylon essentially builds a triple barrier of "raw materials + process + capacity." For trading companies, European markets are increasingly scrutinizing supply chain carbon footprints. The low-carbon attributes of melt direct spinning may become a plus in export certifications, but it also raises the environmental bar for competitors.
Notably, the 18-month construction period means new supply will hit the market around 2027. Current PA6 pellet prices are volatile due to crude oil fluctuations, and the commissioning of melt direct spinning projects may change the pricing anchor for PA6 fiber in the medium to long term—when production costs drop significantly, downstream fabric buyers' procurement strategies need to shift from simple price comparison to evaluating suppliers' process routes.