Invest 530 million caprolactam Orchid announcement delayed

The day before yesterday, Orchid (600123, before close of 44.84 Yuan) announced the suspension on grounds of significant investment projects are being proposed, the major projects announced today, the company plans to invest upstream raw material caprolactam into nylon 4.53 billion yuan, making it the 4th listed companies involved in this industry. The daily economic news reporter found that on April 7, the Orchid project groundbreaking ceremony had been held, prospects for investments, projects, construction details are being exposed.

Investment prospects

Orchid a notice today, the company intends to spend 4.53 billion yuan to build an annual output of 200,000 tons of caprolactam project, the project's Deputy production cyclohexane 50,000 tons/year, 300,000 tons/year ammonium sulfate.

Data show, mainly for the production of caprolactam for nylon 6 chips, and used in the manufacture of nylon 6 fibers, engineering plastics, nylon 6, in which nylon 6 fiber consumption accounted for approximately 58%. In recent years, caprolactam in China over dependence on foreign 50%, 2009 ~2011, 630,800 tons, annual imports of 599,700 tons 625,400 metric tons.

In this regard, information Anissa Wong, an analyst told the business daily reporters, caprolactam synthesis is extremely complex, equipment investment is huge, only few companies mastered the core technologies. 2011 domestic capacity only 585,000 tons of production Enterprise 4, baling petrochemical, DSM respectively East, Shijiazhuang chemical fiber and Juhua group, annual capacity of 200,000 tons, 200,000 tons and 160,000 tons, and 25,000 tons. Among them, baling petrochemical, chemical, DSM, Shijiazhuang East three, all by China petrochemical (600028, 7.29 Yuan closing) holdings.

In 2011, the caprolactam for nylon 6 chips and raw materials with an annual output of about 1.5 million tonnes. 2012 Jinjiang Fujian identity technology, companies with expansion plans, expected end of nylon 6-slice capacity of up to 2 million tons to 80% starts calculating, on demand of about 1.6 million tons of caprolactam.

Caprolactam domestic capacity of 625,000 tons per year. Which, Shandong sea force a period 100,000 tons/years project has Yu March production, II period 100,000 tons/years device drive time undecided; giant of Group February discontinued maintenance, April end of complex postpartum capacity will increased 25,000 tons/years; constant Plaza petrochemical (000703, closing 21.12 Yuan) and China petrochemical cooperation construction of 200,000 tons/years device is expected to May late production; July Shandong Fangming of 100,000 tons/annual can will release; October BA Ling petrochemical spread produced of 100,000 tons/years device production.

Until the end of this year, China's total capacity will reach 1.21 million tons of caprolactam.

Project after the Foundation announcement

Nearly 400,000 tons of gaps need to be filled by imports of caprolactam, how high is the product gross profit margin?

Anissa Wong said currently the manufacturer of caprolactam, apart from the Shijiazhuang chemical fiber using toluene, and the remaining devices are pure benzene, "pure benzene prices currently about 8500 Yuan/ton, pure benzene to caprolactam production costs roughly 9000 Yuan/ton ~10000/ton, visible, caprolactam production costs at 18000 Yuan/ton from top to bottom."

Creating information data show that in April, caprolactam baling petrochemical prices to 21300 Yuan/ton, the same as the Shijiazhuang chemical fiber, DSM Eastern 22600 Yuan/ton. According to projections, the domestic manufacturer of caprolactam margins more than 15%.

Orchid's prospects is reluctant, but a little delayed information disclosure.

On April 7, it was, including the people's daily and other media reported that the Orchid section create an annual output of 200,000 tons of caprolactam project in Shanxi Jincheng Foundation. Reportedly, the project using benzene as raw materials, synthetic ammonia, liquid phase rearrangement of production of caprolactam. Total investment of the project is expected to 4.53 billion yuan, construction period 2 years postpartum can achieve annual sales income of 4.55 billion yuan, the annual taxes of 1.07 billion yuan, annual profit of 786 million Yuan.

However, the Orchid until April 17 before announcing the suspension, 18th announcement interval for 11 days.

In this regard, the investor said in the bar: "major investment without corresponding approval process, not a timely notice, on a variety of questions did not take any notes, what is the reason? "Companies with violations. The daily news called lanhuake for a response, but the calls went unanswered.