Huafeng Chemical to Boost High-End Spandex Production with 3.6 Billion Yuan Investment in 200,000-Ton Low-Carbon, Smart New Materials Project

On January 30, Huafon Chemical announced that the company plans to invest in the construction of an expansion project for an annual production of 200,000 tons of high-performance, low-carbon, digital, and intelligent spandex new materials in the chemical industrial park of Ruian Economic Development Zone. The total investment for the project is estimated to be 3.6 billion yuan, with funds to be raised through a combination of bank loans and self-raised capital.

The construction period for the project is planned to be 60 months, adopting a phased implementation model: the first phase will have a scale of 100,000 tons/year, with an expected construction period of 36 months; the second phase will also be 100,000 tons/year, with an expected construction period of 24 months. The project will utilize advanced processes such as large-capacity continuous polymerization and dry spinning, complemented by intelligent technology, online detection systems, high-efficiency energy-saving and emission-reduction equipment, and high-density multi-head high-speed spinning green intelligent manufacturing production lines, aiming to create a production base that combines technological advancement with green and low-carbon attributes.

According to estimates, after the project is completed and reaches full production capacity, it is expected to achieve an average annual sales revenue of 4.741 billion yuan (including tax), with a post-tax static investment payback period (excluding the construction period) of 5.33 years, demonstrating good economic benefits and market prospects.

Huafon Chemical stated that this project is a significant move in the company's strategic layout. On one hand, it aims to continuously consolidate the company's leading position in the industry through capacity expansion, enhance market influence and core competitiveness, further expand scale effects, strengthen industry discourse power, and contribute to the improvement of concentration and healthy, orderly development in the spandex industry. On the other hand, it seeks to optimize the product structure layout, increase the proportion of differentiated products, focus on enhancing the supply capacity of mid-to-high-end products, and strengthen the company's profitability resilience.

At the same time, the project will accelerate the company's intelligent manufacturing upgrade process. Through deep integration of automation, digitalization, and intelligent technologies, it will drive the transformation of the production model from "traditional manufacturing" to "digital, intelligent, and quality manufacturing", achieving quality improvement and efficiency gains. Additionally, the project will promote the transformation of independent technological achievements, leveraging new technologies, equipment, and processes to enhance production efficiency, reduce energy consumption and production costs, and support the company's steady progress toward high-end, digital, intelligent, low-carbon, and international development.