31 March 2011 09:07 [Source: ICIS news]
HANGZHOU (ICIS)--China’s Zhejiang Hengyi Group plans to start production at its new 600,000 tonne/year poly-condensation plant in Shanghai in September, a company source said.
The new line will mainly produce bottle chips, but it can also manufacture fibre chips according to the market situation, the source said on the sidelines of a major industrial event held in Hangzhou on 30-31 March.
With the new plant, Zhejiang Hengyi’s total poly-condensation capacity will reach 2.1m tonnes/year, the largest in China. The second and the third largest Chinese polyester makers would be Jiangsu Sanfangxiang Group and Sinopec Yizheng Chemical Fibre, with a total capacity of 2m tonnes/year and 1.7m tonnes/year, respectively.
“We are confident in sales and margins of the new bottle chip plan because we have a competitive advantage in raw material sourcing,” the source said.
PTA is the primary raw material in producing polyester chips.
Zhejiang Hengyi runs four polyester yarn lines in Zhejiang, with a combined capacity of 840,000 tonnes/year. It also has a 250,000 tonne/year polyethylene terephthalate (PET) bottle chip unit and a 120,000 tonne/year polyester staple fibre plant in Shanghai. The two production locations also produce polyester fibre chips, with a total capacity of 290,000 tonnes/year.
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