In July 2015, Shaoxing Far East Petrochemical, the leading domestic PTA, declared bankruptcy, causing a stir in the industry. After nearly 4 years, the news about Far East Petrochemicals has gradually faded out of people’s sight!
And recently, with an order: the “signboard” of Far East Chemical Fiber, which symbolized an era, completely collapsed! The transformation of its subsidiary Far East Chemical Fiber has once again focused the attention of industry insiders.
Sigh: Did you ever know that it was a huge A powerful existence!
Speaking of Far East Chemical Fiber, we have to mention its parent company, Far East Petrochemical.
Zhejiang Far East Petrochemical Group is a comprehensive large-scale enterprise group integrating polyester, polyester spinning, polyester staple fiber, texturing, printing and dyeing, real estate, and thermoelectricity. It is a national key high-tech enterprise and a national It is a “contract-abiding and credit-worthy” unit, one of the 26 key large enterprise groups to cultivate and develop in Zhejiang Province, one of the “five batches” key enterprises in Zhejiang Province, and has been awarded “Golden Customer” by many banks.
As one of the top five PTA (purified terephthalic acid) manufacturers in China, Far East Petrochemical has 4 sets of PTA production equipment with a total production capacity of 3.2 million tons. The company covers a total area of approximately 1,370 acres and has 793 employees. In 2014, it produced 2 million tons of PTA, accounting for approximately 7.4% of domestic production capacity, and achieved sales revenue of 11 billion yuan. The company’s annual polymerization capacity has reached 800,000 tons, and it has supporting melt direct spinning differentiated filament and staple fiber production capabilities, 280,000 tons of textured DTY yarn annually, and 120 million meters of external printing and dyeing fabrics. Both in terms of production scale and economic benefits, it ranks first in Zhejiang Province and is also a very influential enterprise in the international chemical fiber field.
In Shaoxing, those who know Far East Petrochemical will inevitably associate it with the once glorious Hualian Sanxin Petrochemical.
Founded in March 2003, Hualian Sanxin is a large petrochemical enterprise jointly established by Hualian Holdings Co., Ltd., Zhejiang Zhanwang Holding Group Co., Ltd. and Zhejiang Jiabaili Holding Group Co., Ltd. The company had a great vision when it was founded. It planned to invest a total of 10 billion yuan. Through 3-5 years of construction and development, it would achieve an annual PTA production capacity of more than 2 million tons and a sales revenue of more than 15 billion yuan, creating a world-class PTA production base. According to China Chemical Fiber Information Network, the company’s annual PTA output once reached 1.8 million tons, ranking first in the country.
Then, the rapid expansion of investment has also brought heavy financial pressure to the company. Due to the rapid expansion of national PTA production capacity, the PTA market has rapidly shifted from a buyer’s market to a seller’s market in just over a year. market, PTA market prices plummeted. Data show that at the end of 2007, Sanxin Petrochemical’s asset-liability ratio was as high as 90%, with total liabilities of 9.912 billion yuan.
What crushed “Hualian Sanxin” was the company’s wrong operation in the PTA futures market of Zhengzhou Commodity Exchange. During the delivery of the PTA futures September contract, the company was forced to take delivery of 150,000 tons due to a failed short squeeze against the trend, involving nearly 1 billion yuan in funds. This resulted in a sudden tight funding situation, seriously affected normal operations, and even faced factors within weeks. The dilemma of being unable to raise emergency funds will force you to initiate bankruptcy liquidation proceedings.
But behind the “Futures Gate”, the last straw that truly crushed “Hualian Sanxin” was Yint’s ” Cut off supply”. According to estimates by industry insiders, based on the opening price of “Hualian Sanxin” in the September contract of more than 9,000 yuan/ton, the company’s loss in receiving goods is about 300 million yuan. Before National Day, a commercial bank in Hangzhou was worried about the financial situation of Hualian Sanxin, which had suffered continuous losses, and suspended subsequent loans to Hualian Sanxin after Hualian Sanxin repaid the loan.
Three major root causes, including tight money, rapid expansion of PTA production capacity amid the downturn in the chemical fiber industry, and poor management, led to the collapse of this once “national PTA leader”.
During the financial crisis in 2008, the original Hualian Sanxin was in trouble due to poor management. Subsequently, Zhejiang Far East Chemical Fiber Group, Binhai Industrial Zone Investment and Development Co., Ltd. and Shenzhen Hualian Holdings jointly injected capital to reorganize and establish Far East Petrochemical. Since the reorganization, Far East Petrochemical’s operating conditions improved for a time, but it ultimately failed to escape the fate of bankruptcy.
In July 2015, with the release of an announcement, Far East Petrochemical, the leading PTA company, applied to the court for bankruptcy liquidation. Two years later, Far East Petrochemical has already changed its name, changed its name to “Reignwood Petrochemical”, and re-entered the market.
In the first half of this year, another blockbuster news came out: Binhai Petrochemical, Far East Chemical Fiber, and Far East New Polyester are located in Ke, Shaoxing City. All assets of Qiao District Binhai Industrial Zone were disclosed on February 22, 2018.height=auto data-preview-src=”” data-preview-group=”1″ src=”http://www.factory-fabric.com/wp-content/uploads/2023/11/20180626094809250007.png”>
Since 2012, due to factors such as blind expansion of enterprises and tightening of money, many enterprises in Xiaoshan have unfortunately collapsed due to guarantee crises, including Hongjian. Hongjian has not been listed on the market, and its influence is not necessarily that of Far East Petrochemical, but in the field of chemical fiber, it is a giant enterprise. It is understood that Hongjian Group was founded in 1999. After more than ten years of rolling development, the group’s total assets have reached 3 billion yuan, with a total area of more than 500,000 square meters. The industry involves two fields: chemical fiber, energy conservation and environmental protection. It has It has seven wholly-owned subsidiaries, including Hangzhou Hongjian Polyester Fiber Co., Ltd., Hangzhou Hongshan Chemical Fiber Co., Ltd., Huzhou Hongjian Polymer Co., Ltd., etc.
At that time, Hongjian Group had ranked among the “Top 50 Chinese Chemical Fiber Enterprises”, and the “Honghua” trademark was rated as “China’s Well-known Trademark”. Over the years, the group has always maintained its corporate competitive status among the “Top 500 Chinese Private Enterprises”, “Top 500 Chinese Manufacturing Enterprises”, “Top 500 Comprehensive Competitiveness of China’s Large Enterprise Groups” and “China’s Top 1,000 Largest Enterprise Groups”.
In 2015, the Hongjian factory suspended production on the 22nd, and employees were not paid their wages for three months. The incident fermented and caused an uproar. Nowadays, the industrial merger and acquisition fund jointly established by Zhejiang Hengyi Group and Zhejiang Capital has spent 600 million yuan to acquire the land, factories and equipment of the former chemical fiber giant Hongjian Group. It was restarted on May 18, 2017.
Minghui Chemical Fiber:
Taicang “Ten Billion Legion” seed player, with first-class German equipment
In September 2015, the Minghui chemical fiber plant located in Shaxi New Materials Industrial Park, Taicang City, Jiangsu Province suddenly and unexpectedly stopped. The product involved was POY. In early October 2015, Minghui Chemical Fiber gave its employees 10 days of leave and defaulted on wages. According to netizens, Minghui Chemical Fiber had already entered into the acquisition process last year, and its employees even made trouble at that time. On November 15, 2015, Minghui Chemical Fiber posted an announcement, and the rumors of “Minghui Bankruptcy and Closure” were finally confirmed…
It is understood that Minghui Chemical Fiber is owned by Suzhou Mingjun Chemical Fiber Weaving Co., Ltd. 10 chemical fiber companies jointly invested and established the project with a total investment of 4.5 billion yuan and a total area of 400 acres. It is currently the largest chemical fiber industry project in Taicang. It was once known as the seed player of the “Ten Billion Legion” in Taicang. Create a “domestic first-class chemical fiber industry group”.
According to relevant analysis, the main reason for the bankruptcy of Minghui Chemical Fiber was excessive loans. From 2012 to 2015, it successively borrowed 2 billion from banks. The debt was too high. In addition, POY products entered the era of low profits, which finally led to the capital chain. fracture.
Editor’s note: The overlord has shed his armor and returned to his fields, and the “leftover” is the king.
Looking at these once glorious chemical fiber giants, although The overlord has been disarmed, but looking back, its original vision was still very beautiful, but the reality is that the overcapacity problem in the polyester industry is still serious, so that manufacturers are facing increasingly fierce competition, and the industry’s “cyclical trough” has emerged. Businesses have to go through hard times.
But this is not entirely bad news. The upgrade process must be based on a cruel shuffle. “There are only bankrupt companies, not bankrupt industries.” I believe that after many pains, companies will find the right fit. path of development.
The ambitions at the time were so high that people can’t help but sigh now… This is the ongoing reshuffle, a person who has been in the industry for many years. A friend said: Since 2015, all walks of life have entered an era where the leftovers are king. This is the best era given by God. Regarding the polyester market, after 18 years of hard work, patience has finally come to an end. Patience is a survival virtue in this market! </p
