While the textile machinery industry is still digesting overcapacity, Hongda Research Institute posted a counter-trend set of numbers: new contracts surged 148.7% year-on-year in H1 2026, and order backlog rose 86.4%. This growth rate is rare in the nonwovens equipment sector, especially against the backdrop of sustained price pressure in downstream spunbond fabrics. The explosive growth in equipment orders deserves a deeper look—it may signal a shift from 'capacity expansion' to 'technology upgrading' in the industry cycle.
Signals Behind the Data
Breaking down the numbers, growth is not from a single market. Overseas, installation and service projects in Turkey and Poland are progressing smoothly, with strong customer repurchase intentions. Domestically, multiple regions are showing momentum: Fujian project passed acceptance, Hebei delivery accelerated, Zhejiang contract took effect, and Jiangsu new customer interest is heating up. This dual-engine model of 'overseas high-end markets + domestic industrial clusters' indicates that Hongda's order structure has evolved from 'single-point breakthroughs' to 'systematic coverage'.
Notably, order backlog grew 86.4%, far exceeding the industry average delivery cycle. This metric directly locks in revenue certainty for the next 6 to 18 months. For equipment suppliers, backlog is a more reliable 'ballast' than new orders—it means production capacity is fully scheduled, downstream customers are increasingly recognizing the technical solutions, not simply competing on price.
How Technology Breakthroughs Translate into Orders
Behind the order surge are several concentrated technology milestones. The ionic liquid solvent bamboo fiber project, after three years of R&D, has entered the pilot engineering design phase, with construction drawings planned for Q3. Bamboo fiber has traditionally been used in regenerated cellulose, but the ionic liquid method bypasses the environmental bottlenecks of the viscose process. Once commercialized, it will directly impact the supply pattern of dissolving pulp and viscose staple fiber, offering a new differentiated raw material option for downstream spunbond nonwovens producers.
The other main line is the commercial delivery of wide-width PE/PP bicomponent spunbond production lines. Bicomponent spunbond is widely used in hygiene and filtration materials, but core equipment previously relied on imports. Hongda's commercial delivery means domestic equipment has crossed the scale threshold in width and stability. For buyers, domestic substitution not only reduces equipment costs but also shortens delivery times—imported equipment often takes 18 months, while domestic can be compressed to 8 months, directly changing downstream expansion decision models.
Additionally, breakthroughs in multiple specialty fiber spinning processes set the stage for future orders. These technology reserves won't immediately show on current financial statements but will translate into new equipment categories in the next two years, especially in high-end nonwovens segments like medical, filtration, and geotextiles.
Industry Impact and Transmission Paths
Hongda's order growth is essentially a lagging reflection of nonwovens industry prosperity at the equipment end. From 2024 to 2025, nonwovens capacity expansion slowed, but the demand for technology upgrades of existing lines increased—especially for high-end lines like bicomponent, multi-component, and biodegradable products. This explains why equipment companies with technical barriers can secure orders despite weak overall investment.
For downstream spunbond nonwovens factories, the active equipment market signals two things: first, high-end capacity still has gaps, and companies that invest in differentiated lines early will gain premiums; second, accelerated equipment localization will compress capital expenditures, allowing mid-sized enterprises to enter niche markets previously dominated by giants. However, caution is needed—an explosion in equipment orders may lead to regional overcapacity, and if downstream demand underperforms, localized oversupply could emerge by 2027.