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Sichuan Meifeng (000731.SZ) announced that the annual shutdown and maintenance work of the entire production facility of its wholly-owned subsidiary, Sichuan Meifeng Chemical Technology Co., Ltd., has been fully completed, and it has successfully restarted and resumed normal production operations.
Implementation of this Maintenance
This is a planned annual overhaul. Previously in July, the company announced the initiation of the facility shutdown. The maintenance, including the shutdown and startup cycle, was expected to take about one month. During the shutdown, the enterprise organized and carried out full-process equipment inspection and testing, pipeline screening, component maintenance, and troubleshooting. It also conducted systematic screening and rectification of key process units to eliminate possible risks in equipment operation, aiming to ensure the subsequent safe, stable, and prolonged continuous operation of the facility.
The subsidiary is located in the Mianyang Chemical Circular Economy manufacturing Park and primarily produces chemical and fertilizer items such as ammonium nitrate, nitro-compound fertilizers, and melamine. During the maintenance phase, the corresponding production capacity was at a standstill. Previous calculations estimated that the maintenance would decrease melamine output by 4,700 tons, compound fertilizer by 17,500 tons, and ammonium nitrate by 20,000 tons, causing a phased disruption to the supply of related items.
Production and Market Impact
With the complete resumption of production, the subsidiary's production lines are gradually returning to a full-load operating rhythm. The production gap caused by the earlier maintenance will be gradually made up, restoring the supply capacity to items such as ammonium nitrate, nitro-compound fertilizers, and melamine.
This is a routine annual maintenance in the chemical sector and not a production suspension due to sudden failure. With the resumption of production, the company's overall capacity has been released. Production and shipping will be organized according to orders to ensure the supply needs of downstream agricultural materials and chemical customers.
At the market level, the domestic fertilizer and melamine markets are in a stage of supply-demand game. The resumption of this facility will increase the market supply of related domestic product categories. The market will continue to monitor the actual load and product shipping rhythm changes of this subsidiary.
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