Recently, Shandong New Momentum Sinochem Green Fund (hereinafter referred to as "Sinochem Green Fund"), a subsidiary of Sinochem Capital Ventures, completed its investment in Zhongwei Chemical Fiber Co., Ltd., a leading domestic company in nylon 66 special functional fiber. The strategic investment of the company (hereinafter referred to as "Zhongwei Chemical Fiber") focuses on the in-depth layout of the nylon new material track.
Zhongwei Chemical Fiber was established in 2015. It is a national-level specialized and special "little giant" enterprise, a national high-tech enterprise, an outstanding supplier of the "13th Five-Year Plan" for China's industrial textiles industry, and a "Thirteenth Five-Year Plan" excellent supplier of China's industrial textiles industry. Nylon 66 Filament R&D and Production Base", a key enterprise in the 100 billion-level nylon industry in Henan Province. The company has outstanding features in the field of nylon 66 automotive airbag wire. It is the first private enterprise in China to master the production of nylon 66 airbag wire. Its products have been supplied to downstream vehicle manufacturers in batches, and its market share ranks among the top three in the country.
The company is located in Hebi City, Henan Province. Its products include nylon 66 industrial yarn, nylon 66 industrial staple fiber, modified engineering plastics, etc., which are used downstream for automotive airbags, tire cord fabrics, aerospace parachutes, modified engineering plastics for high-speed rail tracks, etc. It is the "chain master" enterprise in the nylon new material industry in Hebi City. The company can currently process and produce 10,000 tons of nylon 66 industrial filament annually. With the launch of the filament expansion project, it is expected to become the largest airbag filament manufacturer in China.
As one of the main varieties of nylon, nylon 66 has excellent physical and chemical properties and is superior in temperature resistance, abrasion resistance, water absorption, and deformation resistance. It is often used in special equipment, airbags, cord fabrics and other fields. In the past, the key raw material adiponitrile was monopolized by foreign giants, resulting in insufficient development of the domestic nylon 66 market. In recent years, with the breakthrough of key technologies in the domestic industrial chain, the entire nylon 66 industrial chain has been localized, and the potential market space is huge.
After years of research and development, Yangnong Group, a subsidiary of Sinochem, independently developed an innovative production process for hexamethylenediamine, cleverly bypassing adiponitrile to achieve lane change and overtaking, effectively solving the "supply shortcoming" problem of key intermediates. At the same time, Sinochem's Shuguang Research Institute and Fengshen Tire have been deeply involved in the fields of aviation tires and engineering machinery tires for many years. Nylon 66 cord fabric is in great demand as a key skeleton material for rubber tires. This investment in Zhongwei Chemical Fiber will form strategic mutual trust through equity investment, further promote upstream and downstream cooperation in the industrial chain, and promote high-quality development of the industrial chain. In the upstream of the industrial chain, the two parties will promote joint research and development and trial spinning of high-quality spinning-grade chips, helping the group's nylon 66 products enter the high-end field. In the lower reaches of the industrial chain, the Group's key raw material supplier resources for the rubber tire segment will be enriched, and cost reduction and efficiency improvement of key raw materials will be achieved through customized services for excellent operations.
Sinochem Green Team believes that with the wave of localization of the nylon 66 industry chain, the downstream application space will be further opened, and midstream deep processing companies will usher in multiple industrial opportunities. Zhongwei Chemical Fiber focuses on the field of ultra-high-strength nylon 66 industrial yarn and has unique equipment and process barriers. With its increasing volume in airbag yarn and other fields, it has great growth potential. At the same time, this strategic investment in Zhongwei Chemical Fiber will have the opportunity to promote cooperation and complementation with the group's industrial sectors, achieve effective connection between new product research and development and market demand, and help the group's nylon 66 industrial chain to "extend and supplement the chain."
