September 24, 2024 – Shenma Corporation has officially commenced construction on its 20,000-ton/year differentiated nylon 66 fiber project (Phase I) at the Thailand Lisheng Rubber Industrial Park. The groundbreaking ceremony, held on the morning of September 22, brought together key figures including Ning Shaojie, Deputy General Manager of Pingdingshan Shenma Cord Fabric Development Co., Ltd. and Director of the Thailand Project Preparation Office, senior management from China Harbour Engineering Company (Thailand) Ltd., Li Liang, General Manager of ZPL Architectural Design Consultants (Thailand) Co., Ltd., Zhang Yudong, General Manager of Lisheng Industrial Park, as well as leaders and representatives from various invited enterprises, all bearing witness to this milestone event.
Earlier this year, Shenma Corporation announced its investment plan in Thailand, aiming to establish a production base with an annual output of 20,000 tons of differentiated nylon 66 fibers. Phase I of the project will concentrate on producing 7,000 tons/year of nylon 66 industrial yarn and 3,000 tons/year of nylon 66 fine-denier yarn, collectively forming a production capacity of 10,000 tons/year. The project, expected to be completed within 12 months, will utilize the company’s self-developed four-head high-speed spinning technology, with a total investment of 252 million yuan. Economic analysis reveals that upon normal operation, the project is anticipated to generate an annual revenue of 317 million yuan, a total profit of 59.109 million yuan, a post-tax internal rate of return of 16.75%, and a payback period of approximately 6.95 years.
As a leading enterprise in the fields of nylon 66 industrial yarn and dipped cord fabric, Shenma Corporation already boasts a domestic production capacity of 162,000 tons/year for nylon 66 industrial yarn and 70,000 tons/year for nylon 66 dipped cord fabric. The initiation of the Thailand project marks the company’s first step abroad, implementing an overseas strategic layout and actively responding to the national “Belt and Road” initiative and the international capacity cooperation strategy. The company indicates plans to further expand its production capacity through a second phase, ultimately achieving an overall production scale of 20,000 tons.
According to AsiaMB’s understanding, Shenma Corporation’s choice of Thailand as its first overseas production base is deeply considered. On one hand, it helps secure the safety and stability of the nylon 66 industrial yarn supply chain; on the other, Thailand’s geographical advantage, being close to downstream customers in Southeast Asia, can reduce sales costs and quickly respond to market demands. The demand for nylon 66 cord fabric in Southeast Asia reaches up to 45,000 tons/year, with Thailand alone consuming approximately 15,000 tons annually. Furthermore, the tire industry in Thailand and other Southeast Asian countries is thriving, with a total production capacity exceeding 340 million tires/year, forming a well-established industrial chain. As the world’s second-largest tire exporter, Thailand’s factories are increasingly contributing to the output value and profitability of leading Chinese tire enterprises. Therefore, Shenma Corporation’s Thailand project is undoubtedly poised to benefit from the robust demand and industrial clustering effect of this regional market.