Finance Associated Press, December 6 (Reporter Chen Kang).In order to alleviate the pressure of centralized production capacity of domestic bottle-grade PET (polyester bottle flakes) in recent years, Wankai New Materials (301216SZ) turned its attention to the African market. On the evening of December 6, the company announced that it would set up a joint venture with XJP** through its subsidiary in Singapore, and invest in the construction of a bottle-grade PET production base in Nigeria through the joint venture.
On the evening of the 6th, the relevant person in charge of the company told the reporter of the Financial Associated Press, "the consumption of bottle-grade PET in Africa is greater than the first amount, there are few local bottle flakes factories, and it needs to rely on imports. ”
The reporter of the Financial Associated Press learned that the company's overseas is the "first launch" of the bottle flakes industry, and the person in charge mentioned that "the initial project is not large, and we are also testing the local market, and then expanding after stabilization." Product sales** in Africa are higher than in the domestic market, and margins are higher than the company average. At present, the company's products have been sold to Russia, Egypt, Nigeria and other countries along the "Belt and Road".
According to the announcement, Wankai New Materials will establish a joint venture company through a 100% controlled subsidiary, Chongqing Wankai New Material Technology Co., Ltd. and XJP Co., Ltd. (including Chongqing Wankai Co., Ltd. of US$29.25 million), to build a new SSP unit with a capacity of 300,000 tons per year in Nigeria, which can form an annual production capacity of 300,000 tons of food-grade PET new materials after completion.
The total planned investment of the project is 32.9 billion yuan, the construction period is two years, and the funds are self-raised. The above-mentioned person in charge mentioned that the project will start construction next year and is expected to start output by the second half of 2025.
A month ago, Wankai New Materials mentioned in the roadshow that in 2023, the annual production capacity base of domestic bottle-grade PET will increase by 3.7 million tons, an increase of 35% from the end of 2022, and the domestic market demand has not matched the substantial growth of production capacity.
Bottle-grade PET products are processed into PET bottles by downstream packaging enterprises, which are widely used in food and beverage, daily chemical, medical and pharmaceutical packaging fields, with domestic production capacity accounting for about 35% of the world's total production capacity, and concentrated in Wankai New Materials, Sanfangxiang (600370.).SH), Yisheng Petrochemical, China Resources Materials (301090.)SZ) and other leading companies. The industry believes that judging from the current planned production capacity of major manufacturers, the speed of PET production capacity in the industry next year may slow down and decline significantly.