Hyosung Spandex Launches Third Phase Expansion in Ningxia to Strengthen Global Production Leadership
On Monday, May 13, Hyosung Spandex in Ningxia initiated a third expansion phase to strengthen its manufacturing leadership. This project, which is estimated to cost multiple millions of dollars, will reportedly have five stages, each focused on improving quality and productivity.
(Photo : Unsplash/Samuel Regan-Asante)
Construction of Third Phase Expansion
Taking advantage of the favorable economic environment in Ningxia, Hyosung Spandex (Ningxia) Co Ltd demonstrated great confidence in their ability to build their third phase proposal. President and manager of the company, An Junmo, stated at the groundbreaking ceremony that the organization can reduce production costs and concentrate on its industry advantages through the use of newly developed technologies and equipment and complementary energy supplied by the Ningdong Energy and Chemical Industry Base.
When two manufacturing lines and supporting facilities are considered, the total investment for the third phase will amount to 1.8 billion yuan, equivalent to $248.7 million. Moreover, the facility, which will be built in five stages and located in the Ningdong Base, is expected to produce 300,000 tons of polytetramethylene glycol and 360,000 metric tons of spandex annually once it is finished.
The project, which has an investment of 12 billion yuan and can produce 360,000 tons, is one of 14 significant projects at the Ningdong base with investments of more than 10 billion yuan. Additionally, it is an important project that focuses on new quality productivity and other investment directions adopted by the base government.
Accordingly, Hyosung Spandex (Ningxia) Co Ltd is the biggest foreign-funded company in the Ningxia Hui-independent region. It was founded in January 2021 by the South Korean biochemical and textiles giant Hyosung Group, specializing in producing chemical-based goods and synthetic fibers.
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Energy Resources in Ningxia
According to the production capacity of tantalum, niobium, beryllium, electrolytic aluminum, and metallic manganese, Ningxia is the most productive region in China, situated in the 'Golden Triangle' of China's energy resources. In addition, it produces polycrystalline silicon rods (wafers), commercial sapphires, and materials for lithium batteries on a massive scale. The company's production capability for carbon, activated carbon, and silicon carbide is often regarded as among the highest in the nation.
As mentioned, the construction of 'China's Spandex Valley' is a goal the region is working for. By 2025, Ningxia intends to become the most extensive spandex manufacturing base in the world, with an annual output of 800,000 tons projected for the year. The region's enormous development potential is exemplified by implementing new material industry initiatives, including carbon-based, polycrystalline silicon, metallic, lithium battery, high-performance fiber, and cyanuramide materials.
On the other hand, when it comes to modern energy, Ningxia is the first complete demonstration zone in China. Hydropower can get up to 2 million kilowatts, and the area has wind and photovoltaic power, which are more than 50 million kilowatts each. Numerous opportunities are available for hydrogen energy due to its low cost and wide range of potential applications.
A positive outlook is suggested by the execution of clean energy industry projects, including photovoltaic silicon products, backing machinery, wind power mainframe computing systems and critical components, the hydrogen energy industry chain, energy storage, and novel energy vehicles. Thus, the region Ningxia has achieved the maximum per capita installed power capacity and new energy production intensity per unit of land in the country, with 51% of its capacity accounted for by new energy systems and a 97% employment rate.
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