While most chemical fiber companies are still fighting price wars in the polyester filament market, Baihong Group has taken a different path with an investment of nearly 2.4 billion yuan. In August 2026, its 120,000-ton nylon project officially started production, pushing the polyester leader into a dual-track strategy of 'polyester + nylon.' This move signals a deeper shift in the chemical fiber industry from scale-driven to value-driven growth.
Background
Baihong Group has long been among the top polyester producers in South China. The new nylon project, with a total investment of 2.396 billion yuan, was built to national intelligent factory standards, leveraging a '5G + industrial internet' smart management platform to achieve a fully automated closed-loop process from raw materials to finished products. Once fully operational, it will produce 120,000 tons annually, creating a product matrix covering nylon 6, nylon 66, bio-based PA5X, and specialty nylons.
Notably, the product specifications cover FDY, DTY, HOY (POY), and split fiber masterbatch series, ranging from 10D to 400D. This indicates that Baihong is not simply replicating general capacity but targeting differentiated market segments. Its product positioning is clearly divided into three series: comfort style, professional protection, and low-carbon sustainability, directly corresponding to high-value applications such as sportswear, high-end home textiles, and industrial textile materials.
Moving from polyester to nylon is not a simple addition of capacity. Nylon offers superior abrasion resistance, elasticity, and moisture absorption compared to polyester, but it also comes with higher production costs and technical barriers. Baihong's entry at this time reflects the upgraded demand for functional fabrics downstream—the explosive growth of the sportswear market and the dual demands for comfort and environmental attributes in high-end home textiles are reshaping the competitive landscape at the raw material end.
Industry Impact
For buyers, the new 120,000-ton capacity will bring structural changes to the nylon supply pattern. Previously, the domestic nylon market was dominated by a few specialized manufacturers, leading to volatile prices. Baihong, leveraging its scale production experience and smart control capabilities in polyester, is expected to replicate its cost-control advantages in nylon, thereby offering downstream customers more stable and cost-effective raw material options.
More critical is the inclusion of bio-based PA5X and specialty nylons in the product matrix. These differentiated products directly address brand owners' sustainability commitments and functional innovation needs, such as low-carbon recyclable fabrics and antibacterial cooling fibers. For apparel brands and home textile companies, this means not just an additional supplier, but also the opportunity for collaborative development—Baihong plans to continue tackling special-shaped cross-sections, recycled fibers, and other technologies, allowing buyers to engage earlier in new product development and shorten the cycle from fiber to finished garment.
From an industry perspective, Baihong's 'dual-track' strategy may trigger a ripple effect. The chemical fiber cluster in South China is evolving from a single polyester base to a diversified fiber cluster. The synergy between polyester and nylon production lines can improve raw material self-sufficiency and risk resistance. Meanwhile, the demonstration effect of the smart factory will push more enterprises to accelerate digital transformation, as full automation not only reduces labor costs but also ensures product consistency and traceability—key quality endorsements that high-end customers value most.