Liaoyang Petrochemical Nylon 66 Project Put into Production: Industrial Game and Supply Chain Reconstruction Behind Technological Breakthrough

1.2 billion investment landing, through the "stuck neck" industrial chain

on October 10, 2025, Liaoyang Petrochemical's 100000-ton/year nylon 66 project was successfully fed at one time, marking a major breakthrough in the key links of China's nylon industry chain. This project with a total investment of 1.21 billion yuan took only 16 months from the start of construction in March 2024 to the completion of CCCC in July 2025, demonstrating the efficient execution of China's chemical project construction.

The core value of the project lies in the construction of a complete closed-loop industrial chain: 50000 tons/year adiponitrile plant, 50000 tons/year hexamethylene diamine plant, 120000 tons/year salt forming plant and 100000 tons/year nylon 66 plant operate together to realize the integrated production from adipic acid to adiponitrile, hexamethylene diamine and then to nylon 66. This vertical integration layout effectively avoids the risk of intermediate procurement, significantly reduces the cost of industrial chain synergy, and has important strategic significance in the current market environment.

Liaoyang Petrochemical, as a super-large petrochemical enterprise under PetroChina, now has 58 sets of refining and chemical main units and 38 sets of auxiliary units. The commissioning of Nylon 66 project is the key to its strategy of "Giant of Characteristic Products in Characteristic Industries. It is worth noting that the 40000-ton/year ultra-high molecular weight polyethylene expansion project (investment of 0.211 billion yuan) promoted by the company is also being implemented steadily, showing its overall layout determination in the high-end chemical field.

Ten years of tackling key problems, the strategic significance of independent control of core technology

liaoyang Petrochemical is not a novice in the field of nylon 66. As early as the last century, the company was the first domestic enterprise to achieve large-scale nylon 66 production, using French Rhodia technology, with 20000 tons/year adiponitrile, 20000 tons/year hexamethylene diamine and 15000 tons/year nylon production capacity. However, the status quo of patent technology subject to human prompted it to embark on the road of independent innovation.

After launching the research project of adiponitrile synthesis technology in 2012, Liaoyang Petrochemical and China Kunlun Engineering established strategic cooperation in 2018 to continuously promote engineering technology research. After more than ten years of research, we have successfully developed a more advanced and environmentally friendly package. In March 2024, the two sides once again cooperated to renovate and expand the 50000 tons/year adipic acid ammoniation method hexanedinitrile plant to achieve complete autonomy and control of key technologies.

The strategic value of adiponitrile breakthrough should not be underestimated. As the core bottleneck of the nylon 66 industry chain, the global production capacity of hexanedinitrile has long been highly concentrated in international giants such as Invida and Auschende, and the Chinese market is heavily dependent on imports. The commissioning of Liaoyang petrochemical plant will effectively alleviate the shortage of raw materials in the upstream of the domestic PA66 industry and provide key support for supply chain security. For traders, this means that import dependence is reduced, domestic supply stability is improved, and the bargaining pattern will undergo profound changes.

Capacity surge and profit narrowing: the market enters a period of deep adjustment.

The global nylon 66 industry is undergoing drastic changes. By the end of 2024, the total global PA66 production capacity reached 3.51 million tons/year, up 16% year on year. The industry is highly concentrated, with the top ten suppliers accounting for about 80% of capacity and the top three contributing 47% of capacity. However, the output is only about 2.28 million tons, the average operating rate of the industry is only 65%, and the pattern of oversupply has been formed.

As the largest producer, China's production capacity has reached 1.29 million tons/year, accounting for 37% of the world. Between 2018 and 2024, the domestic PA66 scale grew at an average annual rate of 16%, far exceeding the average growth rate of bulk chemicals. What is more noteworthy is that the domestic projects under construction and proposed construction involve about 30 enterprises, with a total planned production capacity of more than 8.73 million tons/year, superimposed on the existing production capacity, totaling more than 10 million tons. New and Cheng, Tianchen Qixiang, Invida, Huafeng Group, Shenma shares, Hengli Petrochemical and other giants have increased the size, is expected to 2025 domestic production capacity will reach 200-2.5 million tons/year, nearly double the current.

The explosion of production capacity poses serious challenges. PA66 prices fell from a historical high of 33000 yuan/ton to the current 20000 yuan/ton, down nearly 40%. The industry's theoretical profit margin in 2024 is only 3.5 per cent, with profitability under significant pressure. This downward price pressure is difficult to reverse in the short term, especially with the concentrated release of new capacity in 2025, market competition will further heat up.

From the demand side, the global consumption of PA66 in 2024 is about 2.28 million tons, with engineering plastics accounting for 47%, followed by industrial silk and civil silk. Trends such as lightweight new energy vehicles, miniaturization of electronic appliances, and upgrading of high-end textiles support demand, but the growth rate is difficult to match the rate of capacity expansion.

Opportunities and Challenges for Supply Chain Practitioners

in the current market environment, traders and supply chain practitioners need to grasp three major trends:

first, cost competitiveness becomes the core. Enterprises with the ability of industrial chain integration will have an advantage in the price war. Enterprises such as Liaoyang Petrochemical, which open up the whole industry chain, can reduce costs through internal coordination and maintain profitability during the market downturn.

Second, differentiated products are the key to break through.. In the context of narrowing profits of bulk products, high-performance, functional PA66 products will become a value highland. The development of special materials for automotive, electronics, high-end textile and other market segments will bring higher profit margins to traders.

Third, localization reshapes the supply pattern. As Liaoyang Petrochemical and other enterprises achieve technological breakthroughs, import dependence will continue to decline, and trade flows will face major adjustments. Overseas traders need to reassess their strategies in the Chinese market, while domestic traders should seize the domestic substitution window to deepen their partnerships with local producers.