Nylon Integration Accelerates: Hengyi Petrochemical Bets 4.87 Billion on Melt Direct Spinning, Shifting Profit Focus Downstream

While most chemical fiber companies are still calculating profits within the chip-spinning segment, Hengyi Petrochemical has redefined the competitive dimension with a set of numbers: 4.87 billion yuan, 400,000 tons, 80% water reduction, 30% electricity savings. These figures come from its latest announcement, targeting a 400,000-ton annual PA6 melt direct spinning project. For buyers, this is not just a capacity expansion signal—it means the cost curve for PA6 spinning will be structurally lowered in the future.

Background

The project will be implemented by 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 18 months, with funds coming from internal and external sources. Notably, the Guangxi base currently operates a 600,000-ton annual PA6 chip production line, running at full capacity in 2026. After the new project is operational, Hengyi will own both chip and spinning segments, achieving vertical integration from feedstock to fiber.

The technology route is the true highlight of this investment. Hengyi adopts its self-developed PA6 melt direct spinning process, skipping chip packaging, warehousing, and transportation, directly spinning from polymer melt. Compared to traditional batch chip spinning, water consumption drops by 80%, electricity by 30%, and pollutant emissions decrease significantly. This means a structural optimization of unit production costs, not just scale-based dilution.

Industry Impact

Melt direct spinning is not new, but its large-scale application in PA6 remains rare. The industry significance lies in transferring profit margins from the chip segment to the spinning segment through process innovation. For downstream buyers, this means more stable supply and lower costs for PA6 fibers, but it may also squeeze the survival space of small chip-spinning enterprises—they lack self-developed processes and cannot afford similar capital expenditures.

From a supply-chain perspective, Hengyi's move aligns with the industry's shift toward high-end, green, and low-carbon upgrades. PA6, as a high-performance fiber material, is becoming a core track for leading companies to build growth curves. Hengyi's dual-track strategy in polyester and nylon is further consolidated by this investment. However, caution is needed: large-scale capacity additions may lead to temporary oversupply, especially in mid-to-low-end spinning, where price competition could intensify.

For regional industrial clusters, the projects in Guangxi and Hangzhou will drive the agglomeration of downstream nylon processing. The Guangxi base can leverage existing chip capacity for rapid raw material supply; the Hangzhou base is closer to the Yangtze River Delta consumer market, shortening delivery cycles. This dual-base layout diversifies park support pressure and enhances response flexibility to regional demand.

Practical Recommendations

For Buyers - Monitor the certification progress of Hengyi's melt direct spinning products, test their suitability in warp knitting and weft knitting early, and secure advantageous supplier positions before capacity release. - Reevaluate existing chip-spinning suppliers' pricing, compare potential 5%-10% cost advantages of melt direct spinning, and adjust procurement strategies accordingly. - Pay attention to post-commissioning logistics costs from the Guangxi base; if purchase volumes are large, consider setting up a transit warehouse in Nanning or Qinzhou to reduce transportation costs.

For Foreign Trade Enterprises - Include Hengyi's new capacity in overseas customers' product traceability systems, emphasizing the carbon footprint advantages of its low-carbon process, which helps address green trade barriers in markets like the EU. - Track the project's commissioning timeline (around 2028), sign long-term supply agreements with Hengyi in advance to lock in prices and volumes, avoiding supply fluctuations during initial capacity release. - Leverage the short-process nature of melt direct spinning to develop differentiated PA6 fabrics, such as high-strength industrial yarns or fine-denier civilian yarns, enhancing export value and avoiding homogeneous competition.