New Harmony recently unveiled a major investment plan to construct a nylon new material project in the Tianjin Nangang Industrial Zone. The company’s board of directors has approved this initiative, and a corresponding Investment Cooperation Agreement has been signed with the Tianjin Economic and Technological Development Zone Management Committee. The estimated total investment for this undertaking is approximately RMB 10 billion, with the final amount to be determined based on actual expenditures.
As per the agreement, New Harmony plans to establish a new independent legal entity in the Tianjin Economic Development Zone. This new entity will focus on utilizing raw materials like butadiene to produce high-value nylon materials. Positioned as a crucial downstream segment of the Sinopec Nangang Ethylene industrial chain, the project is anticipated to receive multiple policy supports from the authorities, contingent upon the fulfillment of various commitments related to project content and its entity.
Regarding the project’s specifics, according to the Color Masterbatch Industry Network, the development will be rolled out in phases, occupying a total area of approximately 380,000 square meters. The first phase, set to cover roughly 200,000 square meters and costing around RMB 3 billion, aims to construct an annual output of 100,000 tons of adiponitrile-hexamethylenediamine production line, utilizing proprietary technology developed by the enterprise. Following the successful operation of the first phase, the second phase of development will commence. With an estimated investment of RMB 7 billion, this next stage targets an annual production of 400,000 tons of adiponitrile-hexamethylenediamine. Additionally, it plans to extend further downstream, aiming for an annual output of 400,000 tons of nylon 66. The precise construction details and investment sums will be finalized by New Harmony based on market conditions.
When discussing the project’s feasibility, New Harmony emphasized that it will not only enhance the local nylon new material industry chain but also drive the aggregation and upgrading of regional new material industries, injecting fresh vitality into the local economy. Moreover, by adopting advanced butadiene-based adiponitrile preparation technology, the project has the potential to disrupt foreign monopolies in this domain, aligning with the industrial planning of the Tianjin Nangang Industrial Park. Furthermore, New Harmony highlighted that the project’s products possess strong competitiveness in both domestic and international markets, and the implementation is backed by a mature technological foundation, minimizing technical risks.
Regarding the purpose and impact of this billion-dollar investment, New Harmony stated that it has forged significant advantages in new material monomer synthesis technology, polymerization technology, and polymer downstream application modification. This project will further expand the company’s new material business, extend the nylon new material industry chain, and leverage its technological, resource, and market strengths to develop large-scale products, thereby enhancing its overall competitiveness. This collaboration with the Tianjin Economic and Technological Development Zone Management Committee aligns with the company’s future strategic development needs and conforms to national and regional industrial policies and plans. While the project won’t significantly impact the company’s financial results this year, its successful implementation is expected to positively influence the company’s total assets, net assets, revenue, and net income in the coming years.