China’s Huafon Chemical Fiber Co. Ltd. is investing RMB 4360 million for building a 300,000 tons/year of differential spandex project by its subordinated company Huafon Chongqing Spandex Co., Ltd.
The project will be constructed in a phased manner. Phase 1 will have 50kt/year capacity, which will be built over the next 24 months. Phase 2 with a capacity of 150 kt/year, will be operational after 48 months from now. And Phase 3, with 100 kt/year capacity, is expected to be operational 72 months from now.
The project will come up in Baitao Chemical Industry Park, Fuling District, Chongqing. Huafon Chemical will invest in large capacity continuous polymerisation, dry spinning and other process technologies. These will be automatic, intelligent, high-efficiency and energy-saving, high-density multi-head spinning production lines.
The total amount of project income and investment in the payback period is 4.36 billion yuan, the average annual sales (including tax) is 8.84226 billion yuan, and the static investment payback period (after tax) is 5.11 years (excluding construction period).