October 31, 2024 – The rapid expansion of China’s polyester industry has led to a situation where the domestic market can no longer satisfy its growing demand, making it imperative for the industry to venture overseas. The Middle East market, serving as a vital production hub connecting Europe, is emerging as a popular destination for the transfer of China’s polyester industry.
In recent years, numerous large domestic enterprises have accelerated their layout in markets along the Belt and Road Initiative. The Middle East, a key region for global polyester production, has attracted substantial investments due to its proximity to consumer markets, low-cost labor, and ability to bypass trade barriers. The region, rich in oil and gas resources and boasting a developed textile industry, faces a gap in the intermediate polyester chemical production segment. This complements China’s robust polyester manufacturing capabilities perfectly, resulting in a steady increase in China’s polyester exports to the Middle East.
According to Color Masterbatch Industry News, Egypt, home to Africa’s largest cotton and textile industrial cluster, possesses strong downstream garment processing capabilities but relatively weak upstream synthetic fiber manufacturing links, creating a huge demand for raw materials like polyester and chemical fibers. Additionally, Egypt enjoys preferential market access policies from the EU, the UK, and other regions, providing more opportunities for polyester product exports.
Against this backdrop, major domestic enterprises are actively expanding their overseas presence. ITG Holding Group, a Fortune Global 500 company, through its core member ITG Corporation, is actively participating in the Belt and Road Initiative, integrating its development into the global supply chain. In 2023, ITG Corporation established ITG Resources Co., Ltd. in the UAE, serving as its “bridgehead” in the Middle East and North Africa. Hong Weihuang, General Manager of ITG Petrochemical’s Polyester Division, stated that ITG Corporation has ventured into multiple sectors in the Middle East market, and this polyester product promotion is a concrete manifestation of the company’s internationalization strategy.
Furthermore, Nanhua Company, a leading domestic producer of benzenamine and rubber additives, is also actively exploring overseas markets. The company closely follows the industrial layout of the Belt and Road Initiative and collaborates with Sinochem International to continuously expand its product export space. From January to September this year, Nanhua’s benzenamine sales increased by 15% year-on-year, with export volumes up by over 50%. Sales and exports of rubber antioxidants TMQ and 6PPD also saw growth. During the National Day holiday, Nanhua Company made reasonable production arrangements to ensure smooth product delivery, laying a solid foundation for the fourth-quarter push.
In summary, the “going-out” strategy of China’s polyester industry has become an inevitable trend, with the Middle East market emerging as a significant direction for the transfer of this industry. As domestic large enterprises actively layout and expand in overseas markets, China’s polyester industry is poised to play a more prominent role on the global stage.