Hengyi Petrochemical 25.7 billion layout 2.4 million tons of coal to ethylene glycol, "oil coal cloth" three-track strategy accelerated molding.

On the evening of May 15, 2026, China Hengyi Petrochemical announced that its wholly-owned subsidiary Hengyi Energy Technology (Turpan) Co., Ltd. plans to invest in the construction of the "coal-to-ethylene glycol project with an annual output of 2.4 million tons of high-quality fiber", with a total investment of 25.7 billion billion yuan, which is expected to be officially put into production in the first half of 2028. On the same day, another subsidiary, Hubei Hengyi, announced the layout of a 300000-ton recycling new material industry demonstration project in Jingzhou, Hubei, China, with an investment of about 1 billion yuan. The two projects landed simultaneously, marking the strategic transformation of Hengyi Petrochemical into a substantial acceleration stage.

Core project: 2.4 million tons of coal to ethylene glycol, the scale of the industry's forefront

the coal-to-ethylene glycol project is located in the coal-based new material recycling industrial park in Turpan Economic Development Zone, Xinjiang, China, with a construction period of about 36 months, and the source of funds is the company's own and self-raised funds. The complete supporting device system covers a complete set of core units such as gasification, purification, H₂/CO separation, synthetic ammonia, nitric acid, DMO, ethylene glycol and air separation, and builds a complete process closed loop from coal raw materials to ethylene glycol products.

The volume of 2.4 million tons needs to be focused on: at present, China's monomer coal ethylene glycol project rarely breaks through the million tons level, Hengyi this planning scale in the forefront of the industry, once put into production will be directly among China's ethylene glycol head supplier sequence, the impact on the domestic spot market and import pattern can not be underestimated.

Strategic logic is clear. First, driven by resource endowment: Xinjiang is rich in low-cost coal resources, and replacing oil with coal has long-term cost advantages. Second, energy security orientation: under the background of increasing uncertainty in global crude oil supply, ethylene glycol, as the core raw material of polyester, has risen to the level of enterprise strategic security to realize independent control of raw materials. Third, the industrial chain extends vertically: the project opens up the vertical integration chain of "coal resources-ethylene glycol-polyester manufacturing, it helps to calm the erosion of profits from oil price fluctuations and enhance the profitability of the entire industry chain.

Double Project Comparison: Turpan and Jingzhou Collaborative Layout

The recycling new material project relies on the company's self-built "online digital + offline entity" two-track recycling system, using self-developed patented technology, products covering clothing, shoes and hats, household goods, transportation and other multiple application scenarios, strengthen the "cloth" end recycled material supply capacity.

After the two projects are put into production, Hengyi will form a three-track "oil, coal and cloth" industrial pattern of petroleum-based route, coal-based route and regeneration cycle route. The degree of diversification of raw materials is in the forefront of China's polyester industry, and the anti-risk ability is significantly improved.

Financial Feasibility and Market Impact

at the financial level, Hengyi Petrochemical's net profit in the first quarter of 2026 improved significantly, and cash flow was stable and abundant. The company made it clear that the above investment will not have a significant negative impact on production and operation and asset liability ratio.

At the market level, for Chinese polyester companies and traders that rely on imported or foreign ethylene glycol, the balance of supply and demand in China's domestic ethylene glycol supply and demand around 2028 may face repricing. The climbing rhythm of 2.4 million tons of production capacity will be the key observation index to judge the impact of spot price and import dependence. It is suggested that the industry should incorporate the construction progress of Hengyi Turpan project into the evaluation framework of medium and long-term procurement strategy from now on.