On September 26, Shenma Co., Ltd. issued an announcement to further expand the business scale, accelerate project construction, improve profitability, and improve market competitiveness and industry status for the company’s wholly-owned subsidiary, Henan Pingmei Shenma Nylon Materials (Suiping) Co., Ltd. , the company plans to increase the capital of Henan Pingmei Shenma Nylon Materials (Suiping) Co., Ltd. by 173 million yuan in cash.

This capital increase is mainly used for the construction of the project of Henan Pingmei Shenma Nylon Material (Suiping) Co., Ltd. with an annual output of 30,000 tons of BOPA film. The total investment of the project is 578 million yuan, of which the construction investment is 544 million yuan, and the initial working capital is 18.74 million yuan; the construction period is 18 months.

The report shows that the project plans to build 2 main production lines of asynchronous biaxially oriented BOPA film with a width of 6600mm and its supporting equipment, with a designed production capacity of 30,000 tons, focusing on the production of 10~25μm asynchronous biaxially oriented nylon film products with stable market demand. Mainly used for food, daily chemical,
Medicine and electronic packaging and other fields.

It is reported that the planned total investment of Suiping Nylon Industrial Park is 5 billion yuan. The first batch of BOPA film projects with an annual output of 25,000 tons. The first-phase 10,000-ton production line will start construction in June 2020, and will be put into production in September 2021. Now production has entered High-quality and stable operation, production and sales are booming; the second phase of the 15,000-ton BOPA film production line will start construction on March 25, 2022. Civil engineering, equipment bidding and other work are progressing rapidly, and it is planned to be put into production in October 2023.

It is worth noting that the company has simultaneously launched the second batch of BOPA film projects with an annual output of 30,000 tons while building the second phase of the project.

Shenma Co., Ltd. stated that after the implementation of the project, Pingmei Shenma Nylon Materials (Suiping) Co., Ltd. will achieve an annual production capacity of 55,000 tons of BOPA film, give play to the scale effect, and become the first echelon of domestic BOPA film manufacturing, further enhancing the market. Influence, improve product competitiveness and market voice, and complete the first stage of nylon downstream industrial layout.

According to public information, Shenma Co., Ltd. originated from the Pingdingshan Nylon Cord Fabric Factory in Henan in 1977, and was listed on the Shanghai Stock Exchange in 1994, becoming the first listed company in Henan. The company is mainly engaged in the production and sales of nylon 66 industrial yarn, cord fabric, chips, adipic acid and other products.

Thanks to the opening of the industry boom cycle and the sharp rise in product prices, Shenma will achieve operating income of 13.415 billion yuan in 2021, a year-on-year increase of 50.53%; net profit of 2.144 billion yuan, a year-on-year increase of 478.56%; basic earnings per share of 2.3 yuan, a year-on-year increase 296.55%.

In the first half of 2022, affected by product sales and price changes, the company achieved revenue of 7.6 billion yuan, a year-on-year increase of 20.84%; net profit attributable to the parent was 526 million yuan, a year-on-year decrease of 45.99%; deducted non-net profit of 515 million yuan, a year-on-year decrease 46.08%; basic earnings per share was 0.5 yuan.

However, in general, as of the first half of this year, Shenma’s 100,000-ton PC plant has opened up the process to achieve continuous production, and has completed and put into operation a 130,000-ton bisphenol A project supporting it. The continuous growth of carbonate and bisphenol A market demand has formed a synergistic development with the company’s nylon 66-related business in terms of talent reserve, operation management, and market development.

Polycarbonate is one of the important engineering plastics with excellent physical and optical properties, and is widely used in many downstream fields. The smooth commissioning of the device has increased the company’s annual production capacity of polycarbonate to 520,000 tons/year, currently ranking first in the country and in the forefront of the world, and will help to improve the self-sufficiency rate of domestic engineering plastics and ensure the safety of the domestic supply chain of related industries .

The production line of the device is large in scale, and various technological indicators have reached the international advanced level. The company will continue to take safety production as the primary task, optimize process parameters, improve operation level, practice double carbon emission reduction with practical actions, and continue to promote the high-quality development of the company.

Yang Yongming introduced that the device was developed by the Institute of Process Engineering, Chinese Academy of Sciences. It is the world’s first industrial demonstration device for the production of methyl methacrylate from coal-based methanol-acetic acid. The third effective technical route of methyl acrylate, my country has completely independent intellectual property rights.

Methyl methacrylate is an important organic chemical raw material, mainly used for the synthesis of plexiglass, polyvinyl chloride modifier, medical functional polymer materials, etc. It is widely used in automotive lens and other fields. In addition, high-quality methyl methacrylate is also an indispensable polymerization monomer for the production of important materials such as aerospace glass, optical fibers, high-performance optical lenses, and electronic information devices.

According to the website of the Institute of Process Engineering, Chinese Academy of Sciences, the industrial demonstration unit of the 10,000-ton coal-based methanol-acetic acid to methyl methacrylate project was successfully opened in Xinjiang at the end of July, realizing the domestic production of methyl methacrylate from completely relying on petroleum raw materials to using Transformation of coal-based feedstocks. The successful commissioning of this project shows that the coal-based methanol-acetic acid to methyl methacrylate technology developed by the Institute of Process Engineering of the Chinese Academy of Sciences is reliable, and provides strong technical support for the high-end, differentiated and green development of my country’s modern coal chemical industry. It will promote the development of new coal chemical materials, drive related industrial chains, and form industrial clusters.

“At present, more than 30% of methyl methacrylate in China needs to be imported, which restricts the development of related industries.” Yang Yongming introduced that the raw materials of the coal-based methanol-acetic acid to methyl methacrylate process are easy to obtain and low in production cost. Compared with traditional methods, it is clean and environmentally friendly. process, the cost per ton can be reduced by 20%.

Yang Yongming said that the company plans to complete the third phase of the project by the end of the “14th Five-Year Plan” to achieve an annual output of 700,000 tons of coal-based methanol-acetic acid to methyl methacrylate and downstream products, forming an industrial cluster with an annual output value of 20 billion yuan. .

The new production line is planned to invest more than 27 million euros and is scheduled to be put into operation in 2023. It can produce more than 25,000 tons of high-quality polycarbonate and alloys containing physically recycled components per year. Overall, the company aims to deliver more than 60,000 tonnes of polycarbonate with recycled content annually in the Asia-Pacific region by 2026.

Sucheta, COO, Covestro
Govil said: “This physical recycling line is another exciting step in our commitment to the circular economy and our goal of achieving climate neutrality by 2035. Recycling plastic waste is critical to the circular economy and can Effectively address major challenges facing society as a whole. We will continue to invest in expanding and increasing our capacity to recycle recycled plastic and lead the industry in making materials with higher recycled content.”

The line is significant in recycling plastic waste through physical recycling processes such as sorting, grinding, re-granulation and compounding, an important part of the circular economy. In addition, this pioneering production line will be able to meet the continued strong demand for polycarbonate in the region.

Wang Li, head of Covestro’s Engineering Plastics Division, said at the groundbreaking ceremony: “In order to meet the rapidly growing demand from downstream customers for more sustainable and circular solutions, we will continue to invest in expanding our production capacity. This physical recycling The production line is the latest example of our relentless efforts in this regard, demonstrating our commitment to driving the transition to more sustainable products in the Asia-Pacific region and China in particular.”

Renovation and upgrading of Thailand blending plant

Covestro will also retrofit and upgrade its blending line at its base in Mata Province, Thailand, with the ability to produce physically recycled polycarbonate. The renovation of the plant is scheduled to be completed by the end of 2022 to meet the demand for polycarbonate products with post-consumer recycled (PCR) content from various industries in the ASEAN region. According to current forecasts, PCR products will account for 10% of the line’s annual output by 2030.

Nicolas, Head of Global Production Operations at Covestro Engineering Plastics
Dr. Stoeckel said: “The new developments in China and Thailand are not only about investing in additional capacity, but also increasing our ability to produce more products with higher recycled content and more consistent quality. These developments will further increase Asia’s role as the world’s leading PCR polymer The reputation of the carbonate producer.”

Covestro’s PCR polycarbonates Makrolon® R and Bayblend® R
, they contain up to 75% recycled content and can reduce carbon footprint requirements by up to 50% while meeting product performance and EU ecolabel requirements.

Covestro is one of the world’s leading manufacturers of high-quality polymer materials and corresponding components. With its innovative products, processes and methods, the company helps improve sustainability and quality of life in many areas. Covestro serves customers worldwide in key industries such as mobility, construction and living, as well as the electrical and electronics industry. In addition, Covestro’s polymers are used in fields such as sports and leisure, cosmetics and wellness, as well as in the chemical industry itself.

The company aims to be fully circular and plans to be climate neutral by 2035 (Scope 1 and
2). Covestro’s sales in 2021 will be around 15.9 billion euros. By the end of 2021, the company has 50 production sites worldwide.

Among them, the completely biodegradable plastics are as follows:

The sales volume of products was 49,400 tons, a year-on-year increase of 12.09%.

Industry Overview: 2022
In the first half of the year, the state continued to promote the policy of “banning and restricting plastics”. With the continuous improvement of the top-level design of plastic pollution control, the domestic degradable plastics industry is gradually improving. However, due to factors such as geopolitics, fluctuations in the price of upstream chemical monomer raw materials, and the spread of domestic epidemics, the demand for degradable plastics has slowed down significantly compared with the same period last year. In addition, the new production capacity in the industry is gradually put into production, and disorderly competition has led to a decline in the profits of degradable plastic products.

Business conditions:

①Expand upstream resources to ensure the supply of raw materials

In response to the rapidly changing market demand, the company has established long-term strategic partnerships with major upstream suppliers to stabilize the prices of major raw materials and ensure the company’s supply of raw materials.

②Cost reduction and efficiency increase

The company has carried out technical transformation on the synthesis device, reducing the manufacturing cost and improving the production efficiency.

③Improve differentiated competitiveness

The company continues to optimize product performance, upgrade and iterate new products, improve the shelf life of film bags, straw food contact safety and other technologies, and maintain its leading edge in the industry.

④Construct forward-looking research and promote the extension of the industrial chain

The company established Liaoning Kingfa Biomaterials Co., Ltd., actively deployed bio-based monomers and bio-based materials technology research, and steadily promoted the annual output of 10,000 tons of bio-based BDO
Project construction. In addition, due to factors such as epidemic prevention and control and changes in market demand, the company’s annual production capacity of 30,000 tons of PLA will be delayed until the fourth quarter of 2022.