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Recently, Qifeng Chemical Fiber 550 million Yuan country's largest, four polyacrylonitrile-based carbon fiber precursor production lines of a total annual output of 5,000 tons located in Jilin is officially put into operation: one T300 grade 1K 3K carbon fiber precursor production line annual output is 500 tons; each another three T300 grade 12K carbon fiber precursor production lines annual output is 1,500 tons each, they are all put into production beginning of February in Jilin.
Qifeng Chairman Wang Jinjun, said that the investment includes more than 200 million Yuan cash from the Group, more than 100 million Yuan equipment and technology, and about and 200 million Yuan bank loans. If there is funding gap it can be solved by the internal funds and bank financing.
Qifeng is a PAN-based fiber production enterprise, the main business is the production of acrylic fiber, with an annual capacity of 140,000 tons, the combined annual production capacity of 240,000 tons; carbon fiber precursor an annual capacity was 5,000 tons. The main products include Acrylic staple fiber, Acrylic tow, Acrylic top, carbon fiber precursor four series of more than 170 categories of products; more than 40 new products have been exported to international markets.
"The Group is planning on the basis of 5,000 tons precursor to increase it to 15,000 tons"Qifeng has solid Mainland precursor market and to further explore international market including Iran, Russia and South Korea, it continued to open up the Greece carbonization manufacturers who are purchasing precursor. With the further expansion of the Mainland precursor market demand, the Group is planning on the basis of 5,000 tons precursor to increase it to 15,000 tons. Expected by 2015, the an annual capacity will reach 20,000 tons.
Chairman Wan said the acrylonitrile is a by-product of crude oil so it has a more volatile price, but after the integration of the Mainland market years before, the Group has more space to convert the costs onto customers. Group and Sinopec Shanghai Petrochemical accounted for more than half of the Acrylic fibers supply market with a pricing power.
With the sustainable development of Chinese economy and the textile industry, with gradual new carbide plants construction and the extension of the old in the downstream, the precursor market demand will further expand and prices are more optimistic. Jinjun said that the company plans expansion, in 2013, it will expand to 10,000 tons, and also strive to improve product quality, to increase it from T300 to T800; carbon fiber project has gained a total of $ 15 million National Treasury subsidies last year, this year, it will be subsidized $ 10 million.
Original language Chinese